A Day In The Life Of A Loan Advisor - Free Step By Step Credit Repair

The purpose of this website is to show you how to take advantage of several consumer credit laws, including but not limited to the Fair Credit Reporting Act, The Equal Opportunity Act, Privacy Act, and Fair Debt Reporting Act. Upon receipt of your credit to create one easy to read report. You will be given a Determination Sheet, which contains a series of explanations that may be assigned to each adverse item. You will determine which credit items are accurate and should not be challenged. All other credit items remaining on your report will be inaccurate or unverifiable and will be subjected to a dispute. In this blog I will walk you through the steps to begin constructing letters of dispute in your name. These letters will be written to dispute in such a way that the credit bureaus will accept the dispute and conduct an investigation. At the conclusion of the credit bureaus investigation, a new credit report will be sent to you, reflecting any deletions or improvements. This cycle will be repeated at timed intervals. A disputed credit item must be accurate and verifiable to remain on your credit report. Very often, disputed items cannot be verified. Either the creditor no longer possesses the information to verify an accurate account or does not wish to go to the trouble to verify it. This investigation process must be completed within 30 days or the disputed information must be removed. For these reasons properly disputed credit items are removed with remarkable frequency. In my experience, I have found that approximately 30% of disputed negative items are deleted each time the report is challenged. As you can see, challenging your credit report 3 or 4 times throughout this process will achieve impressive results.

Prepare for War

War is not pretty, it's often not fair, and as you embark on your quest to restore your good credit you must get mentally prepared. Your "bad credit" did not happen over night, nor will it be repaired overnight. Depending on the severity of your report and your tenacity to continue to fight, it may take from 2 to 18 months to repair your credit. See the big picture, stay focused on your long term goal. This will keep you in the game. Don't become discouraged if you lose a battle. You don't have to win them all to win the war. And, most important, just as in real war, there is always more than one way to attack.

Organization and preparation is the key to victory. It's important to realize the size of the endeavor in which you are about to commence. Without organization, you will quickly become overwhelmed. When you consider each item on all three credit reports, you will have many correspondence and detailed phone conversations, you will understand how easy it would be to get confused about what letter went where and who you spoke with when. Create a simple system that works for you . The following example might help get you started.

Create 3 legal (8.5 x 11) expandable pocket file foders, one for each major bureau;
Place in each pocket folde, smaller standard folders for each itme you ar going to work on. For example: If you have 6 accounts to be removed from Transunion there will be 6 standard folders on the Transunion pocket folder
Make copies of the log sheets provide to you in your Forms Workbook, 1 call log, 1 letter log in each standard file folder. Your call log will include time, date, name oveperson with whom you spoke, phone number, supervisor name, etc. Allowenoughspace to write information about your conversation and key points discussed or agreement that was reached. Your letter log will include date you sent letters with the follow up date (usually 30 days), how your letter was sent, to whom, etc.;
You will need a calander or day timer large enough to write times, dates, names, etc.

True or False

The information on my credit report can not be changed.
False: The Fair Credit Reporting Act requires tht items be removed if they are not 100% accurate or can not be verified within 30 days of dispute.

A paid delinquent account, such as a charge off, will not hurt my credit.
False: Even if you pay off a delinquent account it will remain, as a negative entry, on your credit report for 7 years. Do not pay off any collection account(s) before listening to the entire CD. However, this does not mean that you should never pay these debts. It's important to negotiate with your creditors as part of the settlement to include a provision for how they will report the transaction to the CRA's

CRA's (credit bureaus) are government organizations.
False: The CRA's are not government organizations. In fact they are privately held corporations who gather and sell personal information for a profit. They must adhere to the laws governed by the Federal trade Commission.

Debt consolidation companies are a good alternative to bankruptcy.
False: Debt consolidation companies are not as damaging as bankruptcy, however, they should be avoided at all cost. These "non-profit" companies do make huge profit from your creditor by negotiation a reduced price for your det and pocketing the difference. This information is reported on your credit report and is a "red flag" to potential creditors who see you using these companies to re-negotiate your debt with them.

Bankruptcy gives you a fresh start.
False: Bankruptcy is not a fresh start and must only be used as a last resort. You will suffer for many years of devastating effects of filing bankruptcy. Every account included in the bankruptcy will be included on your credit report and there will also be a court record of the bankruptcy for 10 years.

Bankruptcies, judgments and foreclosures are impossible to remove.
False: Although some items can be more difficult to remove than others, these negative items can be removed by using creative legal methods and persistence

Analyzing Your Credit Report

Do not start this process until you have received your credit report from each of the three credit bureaus. Each credit bureau presents this information a little differently. At a glance, it may appear too complicated to decipher, but don't get discouraged. Start with your Experian report and list all items reported, as categorized, on your Consolidation Worksheet. Many times reported items will be duplicated or transferred to another creditor and/or collection agency. Example: XYZ Auto Loans will send your account to ABC Auto Loans Collection Agency. It's important not to duplicate these items when listing them on your Consolidation Worksheet. Upon completion of your Experian report, look at your Equifax and Transunion reports to see if there are items not already listed on your consolidation sheet. Note: Items from one report to another may vary slightly in amounts and dates reported, however they can still be the same account. Look at the account number and creditors name for duplicate information. See the example below.

Consolidation Worksheet

Three Basic Credit Categories

The following phrases are common descriptions the credit bureaus use to document your payment ability:

Strategies on the Battlefield

The "rules of war" listed below must be followed to ensure survival into the next battle. A breach in compliance will jeopardize your success.

Never, ever, even mention, hint, allude, infer, say write,tell, translate, or discuss in word or in writing that you are "attempting to repair your credit." Major landmine!! The Credit Reporting Agencies (CRA's) will undoubtedly deem your request "frivolous or irrelevant."
Don't use form letters. Use the sample letters provided in this program for example only. Draft your own letters to look like your own work.
Be neat. Hand written letters are the best, only if written legibly. If you can't write well use a typewriter or computer to draft letters. Have someone proof read; and sign in blue ink - to look original.
Never double up or list disputed items in a single letter. One disputed, one letter! Multiple disputed items will be assumed "frivolous".
Use good ammunition. Make copies of relevant information to be included with disputed items. The more evidence you have the more likely your item will be removed. Be creative and convincing when building your case!
Be a sharpshooter. Targeting specific items with dispute, will increase your chances of success. Don't be vague with a statement such as, "It's all wrong, fix it." Or "change my report, or I will sue." You must give the CRA's reasonable explanation and/or excuse to open an investigation.
Don't be a drill sergeant. Be specific with your request and the action you would like to see happen. Don't bark out orders or demand the CRA's take action. The law requires properly disputed credit items to be reinvestigated. Don't sound like an attorney, quoting sections of the Fair Credit Reporting Act, or compliance procedures of the CRA's. Act like a concerned consumer who's looking for compassion and understanding. If this first round of strikes don't accomplish the mission, you can escalate the tone of your next letters and threaten to get an attorney.
Certify mail your letters. Send every correspondence via certified mail/return receipt requested. This will cost extra., but it's money well spent. This accomplishes two things; 1) you will have proof that your letter was received and 2) it will demonstrate that you are serious about your correspondence. Do not mail a stack of dispute letters at the same time. Wait at least 1 week between mailing letters to the same bureau.
Use smart bombs. Wars in the past were fought by using pure force and firepower. Today, war is fought using intelligence, and precision attacks. This strategy must also be used in your credit repair battleground. Use laser guided missiles to hit specific targets on your credit report. Each credit item has 15 to 20 targets that can be honed in on. Do not start blasting away at your credit report like a mad man. (See "Start Your Campaign")
Strike the weak first. As your credit repair campaign continues, the harder it will be to hide the reality of your intend to "clean your credit." Therefore, it makes sense to save items of dispute with the most back up until later in the campaign. The more back up the better your case for a reinvestigation. Your strongest cases are the ones with receipts, cancelled checks, confirmation letters, etc.

Review for Inaccuracies on Your Credit Report

While reviewing your credit reports, make a list of everything tht is incorrect, outdated, erroneous, misleading or not authorized to be in your credit file. Look for the following:

Incorrect name, address or phone number
Incorrect birth date or social security number
Incorrect marital status
Incorrect employment information
Closed accounts incorrectly listed as "opened"
Accounts you closed that doesn't indicated "closed by consumer"
Paid tax liens, othe liens or judgments listed as "unpaid"
Voluntary return of your car which is listed as a "repossession"
Incorrect account histories, i.e. late payments", "past due", etc.
Pre-marital debts of your current spouse
Duplicated accounts - listed under the creditor and under a collection agency
Merged files - credit histories of someone with a similar or same name
Credit inquiries unauthorized, usually by car dealers or credit card companies
Credit inquiries that are older than 2 years
Criminal record that is older than 7 years
Child support payments reported in two or more states
Lawsuits or judgments reported beyond 7 years
Bankruptcies that are older than 10 years or bankruptcy without a chapter number, which is required per the bankruptcy code.

Consumer's Weapons of War

Know your rights:

You have the right to challenge the accuracy of your credit report at any time.
The credit bureau must investigate any item you challenge.
The credit bureau must investigate the disputed item within 30 days. The time period begins when the bureau receives notice of dispute.
If the credit bureau can not confirm that the item in question is 100% accurate, it must promptly delete the inaccurate information from your report
If the credit bureau does not confirm the information you have challenged within th 30 day time period then item must be deleted.
If the creditor verifies the information and the bureau responds within the 30 days, the negative item will remain on your credit report. You do have the right to re-challenge the item at a later date.
The credit bureau is required by law to attach your explanation of 100 words or less to every report it sends out.

Start Your Campaign

Make several copies of your credit report, keep originals clean. Identify inconsistencies in your credit report. Compare each credit items against the same from all thre credit reports. You will find many discrepancies between each report. If all three are different, even slightly, only one can be correct. It's possible none are correct. Remember, your reported item must be 100% correct or it is removed. Look at inconsistencies in the same repor, such as "date reported" being before the amount was open, or the "balance owed" being more than the highest credit limit. These examples give you an idea of what to look for and to help stimulate your thought process on possible errors in your report.

DO NOT send the specific corrections to the credit bureau as they will only correct your negative item. A corrected negative report is not a benefit. The details you found wrong are only to provide reasonable cause to open an investigation. See sample letters to create your own letters of dispute.

Credit Bureaus' Weapon of War

As you can see this single defense weapon can be used to outgun your et offense, however, it's important to look for cracks or weaknesses in your opponent. It's called "human nature". Keep in mind the crdit bureaus are staffed with just above minimum wage emplyees who will take the easy road at all cost. It's easier for them to deem your dispute "frivolous" and send it back, than to open an investigation. They know most people will go away after only one round of letters, or attacks.

Be persistent, don't give up, this is WAR!! Escalate the tone of your next letters, explaining in more specifics that it is not "frivlous". Strongly suggest they re-investigate; it's your right as a consumer. Now the credit bureau employee has two choices; 1) he can spend the time to file a dispute with the creditor and wait 30 days for a response where he will then have to follow up with additional correspondence to the consumer and expect to have this process repeated until removed, or; 2) take the easy road, which is human nature, and push the delete key on his computer.

Let the Strikes Begin

Referencing the sample letters provided in this blog or through searching the internet, choose the most applicable example to express your case. Write a letter of dispute, with the appropriate information, to the credit bureau. Do not send a form letter or a pre-printed letter to the credit bureaus. Use plain white paper with no letterhead, either hand written or typed, using your own words. Your dispute will be processed sooner if it appears it was not originated from a credit repair company or an attorney. Many times these form letters are either sent back after being deemed frivolous or sent to the credit bureaus' legal department. Remember 1 dispute, 1 letter, and send it certified mail/return receipt requested. Never send more than one letter per week to any one credit bureau.
Record your actions in your logbook. Make copies of the letter and highlight the credit item referenced on your credit report. Mark your calendar as to the drop dead date for the credit bureau to respond. (no more than 30 days from the date received)
Analyze the results of your reinvestigation. Your dispute will result in one of the five following responses:

A request for more information Send the additional information requested. If not available respond with a good reason why.
A rejection letter stating that the dispute was "frivolous or irrelevant" If this happens you have failed to comply with the advice in this program. It is possible you sent out too many disputes to the same credit bureau in too short of time, or you're not being specific enough in your dispute. Re-write a letter escalating your tone; provide additional documentation to support your claim.
SuccessYou will receive a letter stating the removal of the adverse item, followed by a new credit report showing the deletion.
No response After waiting 50-60 days, you should assume your letter of dispute is either lost or not taken seriously. Make copies of your 1st letter and the return receipt form that you received back from the post office and write a second letter including the reference statements and copies of the first letter. Escalate the tone of your letter enough to get the credit bureaus attention.
The item was verified by the creditor and will not be removed Although the credit bureau says they will conduct an "investigation" they do not. Most fo the time they only take the side of the creditor, who has the final word. Unless you have compelling evidence that contradicts the creditor your record will not be changed. The credit bureau will invite you to submit a 100-word excuse to be attached to your credit report. DON'T DO IT!! You will be admitting defeat. Get more evidence and escalate the tone of your next letter. Strike back 2 to 3 more times and never give up.