Credit Report Relief - Credit Freeze and Data Repair Strategies

Credit Freeze and Data Repair Strategies

Credit Report Relief

ISBN (Print Edition): 978-1-09836-720-6

ISBN (eBook Edition): 978-1-09836-721-3

2021. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

Index

Disclaimer of Liability

The material and information contained within this book is for entertainment purposes only and is based on my opinion. You should not rely upon the material or information in this book as a basis for making any financial, legal or any other decisions. I am not a financial advisor nor a lawyer. Any action you take upon the information within this book is strictly at your own risk.

Introduction

The time is now, theres no more time to waste dealing with bad credit, this could be costing you hundred if not thousands of dollars annually in high interest rates. Being denied a personal loan could prevent you from participating in a joint venture even getting that dream home.

This book is intended to give you the consumer a different perspective on utilizing multiple tactics into your credit repair journey. We all know theres no one method that fits all, actually theres no set in stone procedure into how to dispute inaccurate information. Within this book theres many strategies thatll give you a solid foundation to build off of, regardless of what stage youre at within your repair process.

Before we go any further, lets break down a few important words and abbreviations:

Data Furnisher ( DF ): Is an entity that reports information about a consumer to a consumer reporting agency.

Creditor: A person or company to whom money is owed.

Debtor: A person or institution that owes a sum of money.

Inaccurate : False or inaccurate description of goods.

Disclosure: The release of information about a person or entity.

METRO 2: Credit reporting software for creditors to report to major credit bureaus.

E- OSCAR: Is a web base, metro 2 compliant, automated system that enables DATA FURNISHER and CREDIT REPORTING AGENCIES to create and respond to consumers credit disputes.

Flat file data: traditional flat filing system so that each consumer has their own file.

Pinning data: pins are assigned to trade lines based on algorithms that find the consumer that best matches the personal header information.

FCRA: Fair credit reporting act.

www.ffiec.gov documents 02-con-fair_credit_reporting_act-000799

FTC: Federal trade commission.

FPB: Financial protection bureau.

w ww.consumerfinance.gov

FCBA : Fair credit billing act.

www.consumer.ftc.gov articles 0219-disputing-credit-card-charges

FBPA : Fair business practice act .

www.ftc.gov enforcement statutes federal-trade-commission-act

CCPA : California consumer privacy act. Similar to the GDPR, where consumers can ask for subject access request (wonderful, this needs to be implemented across all states)

CDIA: Consumer data industry association . www.cdiaonline.org

NCRA: National consumer reporting association.

Data broker: They collect information from public records, online activity, and purchase history, and resell it to other companies for marketing purposes.

Section One

We must first assume you have already gone over your credit report prior to reading this, and noticed different variations of how your name is spelled, even names that arent even associated with you are mixed up within the report itself. We must take into consideration that just the names with the different variations can hinder you from getting a loan even a job, because you could be considered a high risk, this isnt just limited to the names alone, there could be multiple social security numbers, date of births, address, employments, phone numbers that are collected also, we havent even touched on the accounts yet and already found inaccurate information, well lets see how far the rabbit hole goes.

The most important aspect of the credit file is your personal information, clearly this is what separates you from millions of other individuals, well that is what we are led to believe. These repository (credit bureaus) companies have been known to mix files up, actually the federal trade commission stated that partial matches happen between 1 to 2 percent, its roughly over 200 million credit profiles in even given bureau database, lets just say the minimum number of mix files could be 4 million, that should be a very good reason for you to thoroughly go over your credit report. A lady i n Portland, Oregon a few years back, sued Equifax in federal court and was awarded $18.4 million dollars in punitive damages all due to a mix file. So if you trust these giant data companies think again. I cannot emphasize this enough: their interest is not that of the consumer but protecting the interest of these financial institutions/creditors that are big paying clients.

Allow me to lightly explain how a credit profile is generated. Lets just say you never applied for any loans, credit cards, utility and etc., theres no active file nor score. Once we start to apply for service or credit all that personal information you place on the application is sent to one or more of the repositories to be verified, this personal information is being stored into the database, usually after 2 or 3 hard pulls the file is created. Later we will go over metro 2 header and base segment records.

CREDIT SCORE RANGES:

1. 579 or Below is poor.
2. 580 - 669 Fair.
3. 670-739 Good.
4. 740 - 799 very good.
5. 800 - 850 exceptional.

Dont become fixated on the score, if its not fully structured right, you still have work to do. This is a process, to some people it will be easier than others, but it all depends on your drive and where your understanding is at. the biggest thing is to not over complicate it, make whatever method you choose work for you. If you have more time than money, learn as much as possible, your knowledge will become your tools to rebuild or build that perfect profile. theres always shortcuts to achieving the end goal. remain optimistic in the midst of adversity, that is the key to real success.

Authorize users: A primary card holder can add you on to their credit card as an authorized user, some people call it piggybacking. Lets say theoretically the card was open 5 years ago and has a $5000 dollars credit limit, thats 60 on time payments. Now by being added to the credit card account that history and credit limit will reflect on your credit report, so you definitely will have to make sure theres no late payments and that balance is 10 percent preferably no more than 30 percent of the limit. This could help with your debt to credit ratio and open account history. This is why, when being added as an authorized user you normally see a credit score increase as followed:

• 35% payment history. (60- payments)
• 30% amount owed. (10% utilization, $500 balance)
• 15% length of credit history. (5 years account)
• 10% new credit. (new account added )
• 10% type of accounts. (revolving credit)

Every aspect that makes up the score is touch upon. Its still other factors that come into play like pre-existing accounts already on the report. If you lack history, adding 5 years will be beneficial and if your debt to credit ratio is too high this could bring that down, but a boost will absolutely take place regardless, some greater than others. This could be a great ideal to help newly graduated children build credit under your financial umbrella so they can be more prepared in general.