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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 do1

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

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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