1) Unpaid, delinquent debts
2) Slow payments on existing debt
3) All indebtedness is credit cards
4) Maxed out or almost maxed out on credit line(s) available
San Diego, CA - "Thousands of
consumers nationwide are being jilted by bogus credit
score improvement offers in addition to the credit repair
scams, which are still problematic for consumers,
according to The Federal Trade Commission (FTC). Most of
the consumers who experienced negative outcomes were sold
on the concept that the process is fast and easy. Truth
is, rebuilding a credit rating and improving credit scores
requires both time and patience," said Paul Richard, a
Registered Financial Consultant (RFC), who is also the
executive director of the award winning, nonprofit
Institute of Consumer Financial Education (ICFE), based in
San Diego, CA. The ICFE helps consumers improve spending
habits, increase savings accumulation and use credit more
wisely, in addition to advocating the do-it-yourself
approach to fixing credit file mistakes and increasing
credit scores.
More Americans families and individuals have accumulated
high interest debt than ever before, according to recent
studies. Subsequently, some have done significant damage
to their creditworthiness and credit scores. In an
effort to turn things around quickly, unscrupulous firms
using questionable advertising, are preying on people's
false hope, that, for a fee, they can purchase a good
credit rating and an improved score. Wrong. A bad credit
rating cannot be quickly fixed and anyone who promises
they can, is trying to scam your money.
Four things primarily adversely affect your credit rating
and score. They are: first and most important, defaulted
debts - either debts unpaid or sent to a collection
agency, including credit cards, auto loans, student loans,
mortgages and medical bills. Second, is a slow payment
history. Third, if all indebtedness is on credit cards.
And fourth, being maxed out or almost maxed out on the
credit lines available.
A good way to correct a bad credit rating is to first
reverse the behavior that resulted in a bad credit rating
and then be patient. Paying all bills on time and keeping
debt levels low, a credit record and score will gradually
improve. It's unlikely all the debt came about overnight
and do not expect a credit rating or score will be
improved overnight.
Begin the change by making the monthly payments so that
they reach the creditor a few days ahead of the due date.
Every time a payment is just a day or two late, it may
reported to the credit bureaus and becomes a part of your
credit record. Lastly, don't take on any new debt because,
if overextended, this will be another strike on the credit
report and will also lower a credit score.
For consumers who need assistance, the ICFE's
"Do-It-Yourself File Correction Guide," contains the
latest amendments to the rules by the FTC, which oversees
the Fair and Accurate Credit Transactions Act of 2003 (FACTA).
Included in the ICFE's Guide is a list of consumer credit
rights, credit file request forms, sample letters to
smooth communications with credit reporting agencies and a
special bonus section called "Help with the credit
puzzle." There is complete listings of major credit
reporting agencies and governmental agencies that help
consumers.
The cost is still only $10 plus $2 postage anywhere in the
USA. To order, send $12 to: ICFE Credit File Correction
Guide, PO Box 34070 San Diego, CA 92163 Or please call
1-619-239-1401 OR visit the ICFE on-line at:
http://www.icfe.info.