CREDIT REPAIR PACKET INSTRUCTIONS

Step 1: Fill out the three dispute letters below using your personal information for the three specific credit bureaus.

Step 2: Make sure you have listed your proper address and contact information

Step 3: Sign each document

Step 4: Mail each letter individually to the corresponding addresses listed in the packet. One letter should go separately to each of the credit bureaus.

Step 5: Repeat Step 3 every 30 days. You will receive an updated credit report from each of the credit bureaus on a regular basis, so be sure to update your letters as information is removed from your credit files. Conversely, if new information is added to your credit file, be sure to add it to your dispute letters.

Within a matter of months, you will see improvement to your score. This system is the SAME system that was used for every credit repair company and you now have all of these internal documents for your use.

Equifax

CSC Credit Service

P.O. Box 981222

El Paso, Texas  79998-1222

Experian

P.O. Box 2002

Allen, Texas 75013

Trans Union

P.O. Box 1000

Chester, PA 19022

Jane Doe

555 East Avenue

Dallas, TX. 75000

March 16, 2006

To Whom It May Concern:

I formally request that the following inaccurate items be immediately investigated.  They must be removed in order to show my true credit history, as these items should not be on my report.  By the provisions of 15 USC section 168i of the Fair Credit Reporting Act, I demand that these items be reverified and deleted from my record.

EquiFax Item	Company Name	Acct. Number	Comment
Charge Off	AUTONATION	55555	remove, not my account
Collection	NCO	44444	remove, paid in full
30 Day Late	A&B BANK	33333	remove, was never late

Since 30 days from the receipt of this letter is your allotted time under the law to reverify these entries. It should be understood that failure to do so within the 30 day period constitutes reason to promptly delete the information from my file (FCRA 15 USC s 1681i (5) (A) ).

Also, pursuant to 15 USC s 1681i (6) (A) of the Fair Credit Reporting Act, please notify me immediately when the items have been deleted.  You may send an updated copy of my credit report to the below address.  According to the provisions of 15 USC section 1681j, there should be no charge for this notification.  Also, please send me names and addresses of the individuals you contacted so I may follow up with them.  I AM NOT A CREDIT REPAIR COMPANY, I HAVE PREPARED THESE DOCUMENTS MYSELF, SO YOU MUST INVESTIGATE!  Thank you for your time and consideration.

The following is information that will aid you in your investigation and your response.

Name:	Jane Doe
Current Address:	555 East Ave, Dallas, TX 75000
Social Security #:	555-55-5555

 

Your immediate assistance is appreciated.

Sincerely,

Jane Doe

Jane Doe

555 East Avenue

Dallas, TX. 75000

March 16, 2006

IMPORTANT FACTS ABOUT CREDIT

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your score.

These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.

Payment History

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• Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
• Presence of adverse public records (bankruptcy, judgments, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
• Severity of delinquency (how long past due)
• Amount past due on delinquent accounts or collection items
• Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
• Number of past due items on file
• Number of accounts paid as agreed

Amounts Owed

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• Amount owing on accounts
• Amount owing on specific types of accounts
• Lack of a specific type of balance, in some cases
• Number of accounts with balances
• Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
• Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

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• Time since accounts opened
• Time since accounts opened, by specific type of account
• Time since account activity

New Credit

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• Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
• Number of recent credit inquiries
• Time since recent account opening(s), by type of account
• Time since credit inquiry(s)
• Re-establishment of positive credit history following past payment problems

Types of Credit Used

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• Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Please note that:

• A score takes into consideration all these categories of information, not just one or two.
  No one piece of information or factor alone will determine your score.
• The importance of any factor depends on the overall information in your credit report.
  For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your score. Thus, it’s impossible to say exactly how important any single factor is in determining your score – even the levels of importance shown here are for the general population, and will be different for different credit profiles. What’s important is the mix of information, which varies from person to person, and for any one person over time.
• Your FICO score only looks at information in your credit report.
  However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
• Your score considers both positive and negative information in your credit report.
  Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your score.

IMPROVING YOUR SCORE

It’s important to note that raising your score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your score.

Payment History Tips

• Pay your bills on time.
  Delinquent payments and collections can have a major negative impact on your score.
• If you have missed payments, get current and stay current.
  The longer you pay your bills on time, the better your score.
• Be aware that paying off a collection account will not remove it from your credit report.
  It will stay on your report for seven years.
• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
  This won’t improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

Amounts Owed Tips

• Keep balances low on credit cards and other “revolving credit”.
  High outstanding debt can affect a score.
• Pay off debt rather than moving it around.
  The most effective way to improve your score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
• Don’t close unused credit cards as a short-term strategy to raise your score.
• Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
  This approach could backfire and actually lower score.

Length of Credit History Tips

• If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly.
  New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

New Credit Tips

• Do your rate shopping for a given loan within a focused period of time.
  FICO® scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
• Re-establish your credit history if you have had problems.
  Opening new accounts responsibly and paying them off on time will raise your score in the long term.
• Note that it’s OK to request and check your own credit report.
  This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Types of Credit Use Tips

• Apply for and open new credit accounts only as needed.
  Don’t open accounts just to have a better credit mix – it probably won’t raise your score.
• Have credit cards – but manage them responsibly.
  In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
• Note that closing an account doesn’t make it go away.
  A closed account will still show up on your credit report, and may be considered by the score.

 

If the account is with a collection agency should I negotiate with them or the lender?
Negotiating with the collection agency is probably better since the torch has been passed to it. If the collectors have stopped calling you, it means they’re not optimistic about getting paid, and you’re in a better position to negotiate a win-win deal.

Here are some negotiating hints:

• Negotiate face-to-face rather than over the phone, if possible.
• Make the appointment early in the morning.
• Set a goal — closure before lunchtime.
• Talk to the person who can make the settlement decision.
• Be polite and accommodating, but don’t offer any information on where you work or bank.
• Know what you can afford to pay, and don’t agree to more.
• Offer whatever you can, 40 cents or 50 cents on the dollar. When the collector turns it down, ask what it’s going to take. Don’t agree to an amount that is more than you can afford.
• Be prepared to hand deliver — or send by overnight mail — a money order or a cashier’s check as soon as the settlement is reached
• Get everything you’ve agreed upon in writing before you pay. If you’re doing this via phone, have a fax number ready, so they can send you a statement of what you’ve agreed upon before you deliver the cashier’s check or money order.