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Text To Join July 21, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo.
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It’s Never Been Easier To Start Restoring Your Credit

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Free Credit Score July 21, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information.
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Feds expand free credit score rules / By Janna Herron • Bankrate.com

The government’s new credit score disclosure rules mean more consumers will get a free peek at their credit scores starting July 21, 2011.

Under final rules issued by the Federal Trade Commission and Federal Reserve Board to reflect the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, creditors must disclose the credit score used and additional information related to the score if the consumer receives less-than-favorable loan terms as an applicant or existing customer. Consumers who are denied credit because of their score also receive the score and the additional information.

In most cases, terms refer to the annual percentage rate, or APR, says Rebecca Kuehn, assistant director in the Federal Trade Commission’s division of privacy and identity protection. If there is no APR, the next most significant term affected by the credit score applies, she says.

So what can consumers expect to see in the credit score disclosure? Besides the score, it will include the range of possible credit scores under the model, four key factors that hurt the score — the number of inquiries can be added as a fifth factor — the date the score was created and the reporting agency that provided it.

“In a world where credit requirements are tightening and more people are likely to be denied, the credit score disclosure will have a bigger impact for consumers,” Kuehn says.

Expansion of existing rules

Since Jan. 1, 2011, creditors have been required to provide a more general risk-based pricing notice to consumers who were extended credit on worse terms than other consumers, or a credit score disclosure notice to every applicant. Creditors supplied an adverse action notice if consumers were denied credit or experienced unfavorable changes to an existing account. Neither the risk-based pricing nor adverse action notice included a credit score. Only the credit score disclosure contained the actual score.

“The credit score is what people are most interested in,” says Nessa Feddis, vice president and senior counsel for regulatory compliance at the American Bankers Association.

Feddis points out that many lenders already send out credit scores and disclosures to every consumer to comply with the old risk-based pricing rules. It was easier (and cheaper) than parsing out who should receive a notice.

The scores could cause confusion among consumers since there are many scoring models available, and the credit reporting agencies often don’t have access to the models, says Maxine Sweet, vice president of public education at Experian. She recommends that consumers focus on where they fall in the range of risk rather than on the number.

“We worry consumers will be confused and frustrated by that because they will have expectations that we will know specifically about their score,” Sweet says.

Still, it’s a starting point.

“It will prompt consumers to get a copy of their credit report, address any errors or learn how their own financial behaviors affect their ability to get credit and the price they pay for it,” Kuehn says.

When to expect a free credit score

Click here to see a chart showing you when to expect a credit score disclosure

Why Check Your Credit Report? And How? May 4, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, Tips For Good Credit.
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Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Credit reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. Some financial advisers and consumer advocates, like CredZoo, suggest that you review your credit report periodically. Why?

* Because the information it contains affects whether you can get a loan — and how much you will have to pay to borrow money.

* To make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.

* To help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

How to Order Your Free Report

The three nationwide credit reporting companies have set up one website, toll-free telephone number, and mailing address through which you can order your free annual report. To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can use the form in this brochure, or you can print it from ftc.gov/credit. Do not contact the three nationwide credit reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide credit reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide credit reporting companies every 12 months.

You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide credit reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Obtaining your free credit reports for CredZoo professionals to review is the first step to improving your credit score! You begin by forwarding copies of your credit reports to us from all three of the major credit bureaus. Keep in mind that a recent law which aids in resolving inaccuracies of credit reports, forces the credit bureaus to correspond only with you, not your credit repair firm. Learn more about CredZoo’s credit restoration services right now by clicking here!

(Official Information Courtesy Of The Federal Trade Commission)

Credit Report Errors January 27, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, New Credit Information.
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Do you know how many credit reports contain errors? No? Well, apparently, you’re not alone. Over 7 years ago, Congress directed the FTC to conduct a study of credit report accuracy. The study began with legislation passed in 2003 and continues through 2012, with a final report to be issued in 2014. Interim reports are due every two years. The 2010 interim report was issued on January 12, 2011 and you can read it by clicking here: Overview of Design of National Study of Credit Report Accuracy.

A very small study spurned this FTC investigation into credit report accuracy. The US Public Research Group surveyed just 200 consumers and found that 80% of reports contained some kind of mistake, while 25% contained “serious” errors.

According to Gerri Detweiler of Credit.com, the FTC investigation is being conducted in the following manner:

“-          Invitations have been sent by mail to a large number of consumers, with the goal of getting 1000 consumers to participate. The FTC is sending more invitations to consumers with below-average credit scores in an attempt to make sure those consumers are adequately represented in the study.

–          Consumers review their reports with the help of experts, and get their initial FICO scores. Possible mistakes are identified and the reports are sent to FICO for rescoring to determine how those mistakes may impact the consumer’s credit scores (first rescoring).

–          Consumers dispute mistakes with the CRAs.

–          If the reports are corrected, the corrected files are sent to FICO for a second rescoring.”

The results of this study will be very meaningful and will hopefully help consumers and creditors alike put an accurate amount of emphasis on credit reports. But what can you do in the meantime? Did you know that even if you’re not part of the FTC’s sample of consumers you can still get assistance in reviewing and disputing items in your credit report? The Fair Credit Reporting Act gives you the right to dispute any credit listing on your credit reports that you feel may be inaccurate, untimely, misleading or unverifiable. If a credit bureau cannot verify the accuracy of a disputed listing, it must be removed from your credit report.

To find out more, and to learn how CredZoo can help you clean up your credit report contact us for a FREE credit consultation: www.CredZoo.org or 888-881-5333