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If you are considering applying for a loan, ordering a copy of your credit report may well be the best place to start.  Why?  Because it's also the first thing a potential creditor will be looking at, and even if you pay your bills on time, you will want to ensure that all the information in your credit file is up-to-date and accurate.                         Studies have shown that many credit files contain inaccuracies that could affect your credit rating, and even lead to the rejection of a loan application.  That's why reviewing your credit report beforehand may be a good idea, giving you time to dispute any items that may be the result of simple human error or a technical glitch.                         And depending on whether you are applying for an auto loan, a mortgage loan, or a loan for business or personal use, different lenders may apply different standards in rating your credit worthiness.  For this reason, reading your credit report and understanding how your credit data might be interpreted may give you a chance to improve your credit worthiness from the point of view of a lender.   Before you begin the application process, check your credit report for the following items: Clerical Inaccuracies Sometimes credit reports contain inaccuracies that are the result of a computer glitch or a clerical error.  These may include payments not credited, late payments, or data mixed in from a credit file of someone with a name similar to yours.  Ordering your credit report will quickly show you what the lender will see--then it's up to you to dispute any information that you consider inaccurate. Excess Unused Credit To make your credit more attractive to a potential lender, you may wish to consider reducing the number of revolving charge accounts that are listed as active on your credit report.  Lenders will sometimes view too much revolving debt as a negative when considering a loan application. In situations where you have stopped using a credit account, it is often a good idea to close the account if you don't plan to use it anymore.  Make sure your creditor notates the account "closed at consumer's request"--otherwise, a prospective lender might assume the creditor closed the account for other reasons.                         A few credit cards managed well may improve your chances for a loan--particularly a mortgage loan, where lenders use stricter qualifying guidelines.  Another rule of thumb is to keep balances on credit cards around 75% of the available credit limit.  Ironically, credit cards that have lots of room on them may be viewed as potential debt, while maxed-out cards make you a less desirable credit risk--both of these situations could compromise your ability to obtain a loan.                        30-day and 60-day Late Payments Even if your credit report contains a couple of 30-day late payment entries that are accurate, many lenders will overlook the occasional late payment if you explain the situation and your credit is otherwise good.  Try to avoid any payment being 60 days late however, as this may be a red flag for some lenders--even if they do grant you the loan, it may come at a higher rate of interest and with less favorable terms.                         The primary period lenders are interested in on a credit report is the last two years, so try to maintain on time payments, and verify that the payments are being credited properly by checking your credit report regularly.  Avoid Unnecessary Inquiries Each time a prospective creditor looks at your credit report, an inquiry notation is added to your file, and most inquiries stay on your credit report for up to two years.  Inquiries you make yourself, inquiries made during screening for a pre-approved offer of credit, or an inquiry that is part of a background check for employment purposes are not reported to potential credit grantors.)                         It is best to avoid over-applying for credit and running up excessive inquiries, for the simple reason that lenders of creditors may think you're trying to get credit due to financial difficulty, or taking on more debt than you can repay.                         Lenders do of course realize that some inquiries are a result of shopping around for the best rates on a loan, and so they will often overlook a block of inquiries within a very recent period.  It may help if you explain the inquiries in the application process.                           Understanding how your credit report affects your financial future is the key to smart credit management.  Incorporating a review of your credit report into your financial planning is also one of the best ways to make sure you meet your goals--especially when those goals involve major purchases, and you're shopping for a loan with the most favorable terms possible.   San Francisco     Modesto     Beverly Hills     Fresno     Oakland     Rancho Mirage     California     Glendale     Anaheim     Credit Counseling San Diego CA     Chico     Mountain View     Bakersfield     San Leonardo     San Diego     Pacifica     San Jose     Los Angeles     Chula Vista     Chino Hills  ...read more

The Federal Fair Debt Collection Practices Act or FDCPA prohibits certain debt collectors from engaging in abusive behavior. It covers debt collectors who work for collection agencies. It does not cover debt collectors that are employed by the original creditor (the business or person who first extended you credit or loaned you money). If a debt collector that works for a collection agency breaks the law, you can take steps to make sure it doesn't happen again. What Bills Collectors Can't Do Bills collectors from collection agencies cannot do any of the following: • Call you repeatedly or contact you at an unreasonable time (the law presumes that before 8 a.m. or after 9 p.m. is unreasonable). • Place telephone calls to you without identifying themselves as bill collectors. • Contact you at work if your employer prohibits it. • Use obscene or profane language. • Use or threaten to use violence. • Claim you owe more than you do. • Claim to be attorneys if they're not. • Claim that you'll be imprisoned or your property will be seized. • Send you a paper that resembles a legal document. • Add unauthorized interest, fees, or charges. • Contact third parties, other than your attorney, a credit reporting bureau, or the original creditor, except for the limited purpose of finding information about your whereabouts (collectors can also contact your spouse, your parents if you are a minor and your co-debtors unless you have asked them in writing to stop contacting you). Here's what you can do if a debt collector engages in illegal activity: 1. Tell Them to StopUnder the FDCPA, you have the right to tell a collection agency employee to stop contacting you. Simply send a letter stating that you want the collection agency to cease all communications with you. All agency employees are then prohibited from contacting you, except to tell you that collection efforts have ended or that the collection agency or original creditor may sue you. You can do this even if the collector is not breaking the law, but many debt counselors feel that, unless you're judgment proof (that is, broke) or truly plan to file for bankruptcy, the best overall advice is not to ignore the debt or try and hide from the debt collector. Usually, the longer you put off resolving the issue, the worse the situation and the consequences will become. Whether you negotiate directly with the collector or obtain a lawyer's assistance, many counselors feel the best strategy almost always is to speak to the collector. 2. Document Illegal BehaviorIf a debt collector breaks the law, document the violation as soon as it happens. Start a log -- and write down what happened, when it happened, and who witnessed it. Then, try to have another person present (or on the phone) during all future communications with the collector. In some states, you can record phone conversations without the debt collector's knowledge. In others, this tactic is illegal. Check with your state consumer protection agency to find out what is permitted where you live. 3. File a ComplaintFile an official complaint with the Federal Trade Commission (FTC), the federal agency that oversees collection agencies. Ask the FTC to send you a complaint form, or just write a letter. Contact the Federal Trade Commission at 6th and Pennsylvania Ave. NW, Washington, DC 20580, www.ftc.gov/ftc/complaint.htm. Include the collection agency's name and address, the name of the collector, the dates and times of the conversations, and the names of any witnesses. Attach copies of all offending materials you received and a copy of any tape you made. Also, send a copy of your complaint to the state agency that regulates collection agencies for the state where the agency is located. To find the agency, call information in that state's capitol city or check your state's website. Finally, send a copy to the original creditor and the collection agency. The original creditor may be concerned about its own liability and offer to cancel the debt. Once your complaint is filed, don't expect immediate results. The FTC may take steps to sanction the agency if it has other complaints on record. The state agency may move more quickly to sue the collection agency or shut it down for egregious violations. Your best hope is that the creditor will offer to cancel the debt. 4. Sue the Debt CollectorIf you've been subject to repeated abusive behavior and can document it, consider suing the collection agency. But if the illegal behavior was annoying but nothing more, don't bother. For example, if the collector called three times in one day but never again, you probably don't have a case. To sue the debt collector, you can represent yourself in small claims court or hire a lawyer and go to regular court. (The other side may have to pay your attorneys' fees and court costs if you win.) You're entitled to recover the amount of any actual financial losses -- for example, your pain and suffering or the amount you paid to switch to an unlisted number to avoid harassment -- and an additional amount (unrelated to actual losses) up to $1,000 for any violation of the FDCPA. Your Rights As A Consumer Consumer LawsThe Fair Debt Collection Practices Act and the Fair Credit Reporting Act have been established to protect you – but you need to be aware of these and other current laws and consumer rights to more effectively deal with creditors as well as dispute your credit report.That's why so many credit experts recommend that consumers work with legal experts from an experienced law firm to repair their credit reports. The Fair Credit Reporting Act You are entitled to a free copy of your credit report if you've been denied credit, insurance or employment and request the report within 60 days of notice, or if you can prove:       (a) You are unemployed and plan to look for a job within 60 days        (b) You are on welfare        (c) Your report is inaccurate because of fraud You can dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation. Never send original documents. If your application for credit, insurance, or employment is denied because of inaccurate or incomplete credit information, the company to which you applied must give you the name and address of the reporting credit bureau. There is no charge to dispute mistakes or outdated information on your credit record. Ask the credit bureau for a dispute form and submit it with any supporting documentation. Job applicants can have corrected reports sent to anyone who received a report for employment purposes during the past two years. If the reinvestigation does not resolve your dispute, have the credit bureau include your version of the dispute in your file and in future reports. Remember, there is no charge for a reinvestigation.Equal Credit OpportunityCredit is used by millions of consumers for a variety of reasons. The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This means that all consumers who apply for credit will get equal consideration. The applicants' creditworthiness will be determined according to factors such as income, expenses, debt, and credit history.The law protects you when you deal with any lender who regularly extends credit, including banks, small loan and finance companies, credit unions, department and retail stores, and credit card companies. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law. Businesses applying for credit also are protected by the law.For More InformationCredit Guard, Inc. and the FTC are excellent resources and provide a wealth of helpful information for consumers to avoid unscrupulous creditors and credit repair scams. The FTC works to protect consumers by preventing fraudulent, deceptive and unfair business practices in the marketplace.To file a complaint, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters identity theft, telemarketing, Internet, and other fraud-related complaints into a secure, online database that is available to hundreds of criminal law enforcement agencies worldwide.Contact UsRepairing your credit report is one of the most important financial decisions you can make. Credit Guard, Inc. is a trusted licensed, registered and bonded credit repair company, with bonds posted of nearly a million dollars to ensure our clients the best results in the industry. We are a member of the Chamber of Commerce and an "Accredited" member of the Better Business Bureau. If you have any other questions or need credit report repair services, please contact us anytime:Phone: 1 (800) 337-4077Email: Help@CreditGuardCalifornia.com Disclaimer Credit Guard, Inc. provides the information on this site as a service to the general public. While the information on this site deals with legal issues, it does not, nor is it intended to, constitute legal advice. ...read more