Credit scores and credit reports how the system really works what you can do
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Credit Scores and Credit Reports – How the System Really Works, What You Can Do. Sue Woodard – Mortgage Market Guide with Credit Expert Evan Hendricks. Evan Hendricks. Author of Credit Scores and Credit Reports – How the System Really Works, What You Can Do

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Credit Scores and Credit Reports – How the System Really Works, What You Can Do

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Credit Scores and Credit Reports –How the System Really Works, What You Can Do

Sue Woodard – Mortgage Market Guide

with

Credit Expert Evan Hendricks


Evan Hendricks

  • Author of Credit Scores and Credit Reports – How the System Really Works, What You Can Do

  • Regular Presenter at Federal Trade Commission Trade Workshops

  • Qualified at Federal and State Levels as Expert on Identity Theft Court Cases


Credit Score Model

  • Scores are Somewhat Counter Intuitive

  • 30% Based on Balance to Limits

    • Individually and Cumulatively

    • Balances Normally Reported Month End

  • Closing Accounts Could Hurt Scores

  • Recent Negative Information Damaging

    • Paying Off Five Year Old Charge Off Becomes Recent and Could Damage Credit Rating


What Can Consumers Do?

  • Difficult To Get Permanent Removal of Info

  • Keep Balances Low to Limits

  • Some Credit Issuers Don’t Issue Limits

    • Dispute All Bureaus to Get Issuer to Report

  • Monthly Accounts Like American Express Will Demonstrate High Balance Over Time

  • Review Personal Credit Reports Regularly


Annual Credit Reports

  • New Federal Law Provides for Annual Credit Reports

    • www.annualcreditreports.com

    • Available Annually, Quarterly

  • Unlike Fee Based “Free” Credit Report Services

  • Mortgage Professional Can Supply Credit Reports for Review


Rapid Re-Score

  • Independent Credit Re-Sellers Can Provide Updated Scores Based on Corrected Information

  • Most Re-Sellers Part of NCRA or National Credit Reporting Association

    www.ncra.org

  • Potential Increases of 20-100 Points

  • Cost Ranges From $75 to Several Hundred Dollars Based on Trade Lines Involved


Credit Repair Companies

  • Veracity Credit – Denver

  • Credit Resource Corp. – L.A.

  • Companies Specialize in Removal

  • Fees Vary – Set Up Fees plus Monthly Maintenance Fees


Credit Repair Tactics

  • Disputes Must Be Answered Within 30 Days – “Bombardment” Method Sometimes Yields Results

  • If Accounts Shown as Disputed – Removed From Score Models Till Resolved

  • Credit Grantors Can Provide Quicker Response Than Credit Reporting Agencies

  • Always Get Name, Extension, Expected Date of Reported Change, Request Faxed & Signed Acknowledgement


Identity Theft

  • Fastest Growing White Color Crime

  • Can Drive Score From 700+ to 580

  • Time Consuming To Resolve

  • Costs Incurred Can Be Extensive


What’s a Consumer To Do

  • Check Report Regularly

  • Be Aware of Inquires From Out of Area

  • Credit History Shows Incorrect Accounts, Collections, Charge-Offs

  • Dispute With Grantor Immediately

    • Resolve Your New Part-time Job

    • File Fraud Alert, Police Report or Fraud Affidavit

    • Put Account Name and Account Number On It


It May Not Be Over Yet

  • Consumer May Have To File Suit

  • www.naca.net

    National Association of Consumer Advocates

  • Use for Recovery of Attorney’s Fees if Needed

    To Right Report


What About Inquiries?

  • You Can Shop for 45 Days With a Hard Inquiry, Mortgage Auto, etc.

  • Inquiries Pulled From Consumer Do Not Count Against Them


Who Else Wants to Know Your Score?

  • Employers View Credit Reports as Inexpensive Background Checks

  • Insurance Industry – If Under Financial Stress You May Be More Prone to Cause Loss For Insurance Company – Increase Rates

  • Mortgage Insurance Premiums Can Be Impacted by Scores, Positively or Negatively


Invest In Your Clients

  • Direct Clients to Free Site for Annual Review

  • www.annualcreditreport.com

  • Everyone Entitled to Free Report By September 1, 2005

  • Site Contains Valuable Information for

    Client Mailings


Credit Scores and Credit Reports –How the System Really Works, What You Can Do

  • Second Edition Benefits – Includes Information on Companies Not Reporting Total Information

  • One Credit Bureau Doesn’t Always Report Total Information

  • Updated Identity Theft and Credit Repair Chapter Information

  • Includes Information on Good Credit Repair Companies


How To Get Book

  • Discounted Price For Case Purchase – Save $250.60 per Case of 28 Books

  • [email protected]

  • www.privacytimes.com

  • Phone: 301-229-7002


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