Montana Owners Club - Keystone Montana 5th Wheel Forum - View Single Post

dsprik · 02-25-2006, 04:27 PM

Thanks, Michael. Many people have no idea how to handle credit, or how they are scored. Everyone needs to study their credit reports and learn what affects their score. Remember, 70% of all credit reports contain errors. Many of those are multiple and major errors.

Using the links that Michael has provided above, pull your reports (they are free, your credit scores are not) AND all three credit scores - you will have to pay for the scores - do it. They are $5.00, $5.95 and $6.95. Do not make the incredible error of thinking that they will all be the same. I had 104 point differences between two of my credit report scores.

As Michael can tell you, it is a"crap shoot" regarding which Credit Reporting Agency(s) CRA(s) a particular financial institution, or insurance company, will use. Many banks now use a private company that collects data off of all three CRAs. Many Credit Unions are currently exclusively using TransUnion. As they seem to be the "fashionable" CRA among credit unions right now (this last statement was from a CU loan officer. The last two CUs I have talked to, both use TU exclusively).

Most of you, will be very surprised by what you see on your reports - multiple wrong addresses, different reporting on different CRAs on the SAME loan, or account, accounts that are not even yours - possibly you kids (I had two of my kids on my reports), collections that you never knew were there, but which had caused you to pay more money in interest rates over the years than you should have been paying.

Follow through with the dispute procedures that each CRA gives you. Stay persistent. What I thought would be a 30 day task turned out to be an eight month ordeal and is still ongoing.

A word of caution - if you have a collection account that you decide to dispute, and it is NOT taken off your report(s), it is recorded by Fair Isaac Co. (FICO) as a NEW activity by a collection agency as they will post on your credit report a "Last Updated: **/**/**". This will immediately take your FICO score down as it is a "Recent Collection Activity"

I have three credit cards (major) that I am keeping at 40%-50% balances. Credit card companies have found a new easy prey. It is called the American consumer. Insurance companies are raising their premiums if you have ANY late payments on your credit reports. Be very careful of any credit card offers. CitiBank, and many others, have discovered this "loophole" of unprotected consumerism. They will regularly scan your credit reports and the first 30 day late that shows ANYWHERE on ANY report will trigger their "Penalty Interest Rate". Be very careful of this trap. Read the fine print VERY carefully. Most Americans have NO CLUE that these companies have discovered this wide open, weak spot of the an unsuspecting American Consumer. They are obviously going to run this as far as they can before Congress or some other Class Action Suit stops them. In the meantime, this will cost the American consumer millions, if not hundreds of millions of dollars, in higher interest rate costs than what there should have been - and higher ins premiums.

Guess where most of the gross income from these CRAs come from? From financial institutions that subcribe to them. Very little money is made by consumer products, at this time - although that is increasing. Any way... guess who benefits if there "happens" to be an inadvertent "30 day late"... that's right... the financial companies, as it justifies higher rate charges by these companies. See a problem here?

Well, surely there are penalties for incorrect reporting by these companies, that have the potential to wreck financial havoc on a family, right? You bet! Here it is: Maximum of $1,000, IF you can prove malicious intent - plus any punitive damages that a judge may deem as appropriate. All a reporting "person" (as defined in the Fair Credit Reporting Act - FCRA) has to say is "Oops, my mistake." and they are off the hook. Of course, they will remove it - if you caught the error at all.

Well, I'm done. There is much more. Suze Orman has called it a "racket". That may have been a mild description. I have studied this Credit Reporting situation for 8 months. I have raised my score from a 472 (Yes, that's 472) to a 618 and my goal is 740. I have that BIG number above my desk where I see it every day. I have been in communication with a Federal Bankruptcy Judge, who has been kind enough to respond personally to my letters. My Senator and Congressman are next on my list to contact.

BTW, the FTC will not respond to any complaint you may have. They state on their website that they will add this comment/complaint to their "database". Apparently, the way it works is that, if the FTC gets enough complaints on an individual, or company, they will investigate. Great.

Sorry... NOW I'm done.

02-25-2006, 04:27 PM	#37
dsprik Montana Master Join Date: Jul 2005 Location: Fort Myers Posts: 5,933 M.O.C. #4282	Thanks, Michael. Many people have no idea how to handle credit, or how they are scored. Everyone needs to study their credit reports and learn what affects their score. Remember, 70% of all credit reports contain errors. Many of those are multiple and major errors. Using the links that Michael has provided above, pull your reports (they are free, your credit scores are not) AND all three credit scores - you will have to pay for the scores - do it. They are $5.00, $5.95 and $6.95. Do not make the incredible error of thinking that they will all be the same. I had 104 point differences between two of my credit report scores. As Michael can tell you, it is a"crap shoot" regarding which Credit Reporting Agency(s) CRA(s) a particular financial institution, or insurance company, will use. Many banks now use a private company that collects data off of all three CRAs. Many Credit Unions are currently exclusively using TransUnion. As they seem to be the "fashionable" CRA among credit unions right now (this last statement was from a CU loan officer. The last two CUs I have talked to, both use TU exclusively). Most of you, will be very surprised by what you see on your reports - multiple wrong addresses, different reporting on different CRAs on the SAME loan, or account, accounts that are not even yours - possibly you kids (I had two of my kids on my reports), collections that you never knew were there, but which had caused you to pay more money in interest rates over the years than you should have been paying. Follow through with the dispute procedures that each CRA gives you. Stay persistent. What I thought would be a 30 day task turned out to be an eight month ordeal and is still ongoing. A word of caution - if you have a collection account that you decide to dispute, and it is NOT taken off your report(s), it is recorded by Fair Isaac Co. (FICO) as a NEW activity by a collection agency as they will post on your credit report a "Last Updated: //**". This will immediately take your FICO score down as it is a "Recent Collection Activity" I have three credit cards (major) that I am keeping at 40%-50% balances. Credit card companies have found a new easy prey. It is called the American consumer. Insurance companies are raising their premiums if you have ANY late payments on your credit reports. Be very careful of any credit card offers. CitiBank, and many others, have discovered this "loophole" of unprotected consumerism. They will regularly scan your credit reports and the first 30 day late that shows ANYWHERE on ANY report will trigger their "Penalty Interest Rate". Be very careful of this trap. Read the fine print VERY carefully. Most Americans have NO CLUE that these companies have discovered this wide open, weak spot of the an unsuspecting American Consumer. They are obviously going to run this as far as they can before Congress or some other Class Action Suit stops them. In the meantime, this will cost the American consumer millions, if not hundreds of millions of dollars, in higher interest rate costs than what there should have been - and higher ins premiums. Guess where most of the gross income from these CRAs come from? From financial institutions that subcribe to them. Very little money is made by consumer products, at this time - although that is increasing. Any way... guess who benefits if there "happens" to be an inadvertent "30 day late"... that's right... the financial companies, as it justifies higher rate charges by these companies. See a problem here? Well, surely there are penalties for incorrect reporting by these companies, that have the potential to wreck financial havoc on a family, right? You bet! Here it is: Maximum of $1,000, IF you can prove malicious intent - plus any punitive damages that a judge may deem as appropriate. All a reporting "person" (as defined in the Fair Credit Reporting Act - FCRA) has to say is "Oops, my mistake." and they are off the hook. Of course, they will remove it - if you caught the error at all. Well, I'm done. There is much more. Suze Orman has called it a "racket". That may have been a mild description. I have studied this Credit Reporting situation for 8 months. I have raised my score from a 472 (Yes, that's 472) to a 618 and my goal is 740. I have that BIG number above my desk where I see it every day. I have been in communication with a Federal Bankruptcy Judge, who has been kind enough to respond personally to my letters. My Senator and Congressman are next on my list to contact. BTW, the FTC will not respond to any complaint you may have. They state on their website that they will add this comment/complaint to their "database". Apparently, the way it works is that, if the FTC gets enough complaints on an individual, or company, they will investigate. Great. Sorry... NOW I'm done.