I'll bet you didn't know those collector calls can mean gold for you.  It is probable that one or more collectors are violating your rights.  The only way to prove that and make a case that we can work with is to keep good records.  By keeping accurate records of these calls, and in some cases letters you get, we may be able to sue your creditors and obtain some penalty fees for you.

You can help yourself protect your rights if you keep a record of those calls.  This can be accomplished in one of two ways:

1)  write it down on a log.  Keep this information on the log:  name of caller, company he/she represents, time of the call, start and stop time of the call, what was said during the call, especially if abusive language, threatening language, or untrue/unfair statements are made.  Note the call back number if your phone shows it.

2)  record the call.  Discover whether your phone system or cell phone can record calls, then be sure you hit the record button at the start of the call.  If necessary, have the person repeat what might have been missed at the beginning of the call while you were recording it.

Donna Perkins

3)  be sure to mention you are recording the call, as required by law.

Keep those records in one place.  When it comes time to do something about it, call us and one of our Credit Concierges(tm) will discuss with you the next steps.  When creditors or collectors violate your rights, it is possible that we can obtain some money for you.  It's about time!

Be sure to ask about our Debt Negotiation services, and our debt relief program for total debts over $20,000 and up to $300,000, including business debts that were signed for personally.

It is important to understand this distinction. The creditors nor the bureaus have any vested interest in having your credit report be cleaned up. As mentioned in previous emails, the bureaus make the most money from your troubles. The creditors make the most money when your scores are lower, as they can charge you higher interest rates and fees. So there is no incentive to paying old debts except to get out of debt!

Credit Bureaus will most often remove negative credit information that is not verifiable.  But it is important the WAY it is requested. You need a credit restoration specialist to assist you with this task.

Donna Perkins

If you are in this type of situation, our Credit Concierges(tm) can help. Call us today to get started on your personal path to financial freedom!

In the first editorial in this series, we defined a myth as:  something you believe because you heard it from someone else or saw it on a website like "credit repair is a scam".  This is soooooo not true.

Today's "myth" talks about:

PAYING OFF YOUR OLD DEBTS WILL REMOVE NEGATIVE INFORMATION ON YOUR CREDIT REPORT.

This myth is one of the most prevalent, and most damaging.  Paying off your debt helps you have no debt, but it does not necessarily help your credit score.  It can take two years for a paid off account to register as an improved score. 

Remember, your score is made up of five different categories:

1)   35% of your score is made up of your payment history.  The fewer late pays and partial pays that you have, the higher this percentage will count.

2)   30% of your score is made up of the amounts you owe, versus the overall credit limit you have.  For instance, if you have 3 credit cards, each one with a $5,000 limit, your available credit is $15,000.  If you have charged $3,000 on a combination of those cards, then your debt to credit ratio is 20%.  If you have charged up $12,000, then your debt to credit ratio is 80%.  The bureaus count 30% or below as good; the higher amount you owe, the lower your score.

3)   15% of your score is based upon how many years you have had credit.  Your parents may have had credit for 30 years, but you may only have had credit 2 years.  The bureaus take this into account, and favor the consumers who have a longer history.

4)   10% of your score is based upon how long it has been since you received new credit.

5)   10% of the score is weighed based on the types of credit you are using:  mortgage, installment payments like a car or furniture, vs. unsecured credit card debt.  The more diverse, the better your score.

Having explained that, one can see that paying off your debt completely, and closing an account could actually be harmful.  Lets use that same $15,000 total available credit scenario.  You decide to pay off one of your credit cards and close it.  Now you only have $10,000 in available credit.  If you owed the same $3,000, your debt to credit ratio is now at 33.3% instead of 20%.

Donna Perkins

Credit bureaus will most often remove negative credit information that is not verifiable. This is why we work so hard on your behalf.  If you wish it, and select this path of credit restoration, we will challenge the creditors for you.  They must be able to provide the paperwork that proves you owe the debt.  If they cannot do so, we can most likely get the debt voided and removed.

However, let us be clear.  We cannot claim to remove “accurate” reporting.  So if you have a negative item that can be verified, it may need to be paid off to take the next steps to a better report.  Ask your Credit Concierge™ for more information.  Click here.