| Here are the top 7 questions we hear from | | | | request is "frivolous and irrelevant." |
| consumers about credit reports and credit scores... | | | | I recommend disputing no more than five or six items |
| 1. Will closing paid off credit card accounts improve my | | | | at a time. |
| credit score? | | | | 4. Is a 20 point increase in 72 hours possible? |
| This will surprise many of you, but closing paid off | | | | There are literally hundreds of "credit repair" outfits |
| credit card accounts can actually hurt your score in | | | | promising to drastically repair credit scores in as little as |
| two ways. In "Your Credit Score", Liz Pulliam Weston | | | | 24 - 72 hours. Is it a scam? Believe it or not, this is not |
| explains: | | | | a scam. Rapid rescoring services can and do help |
| A. Closing accounts can make your credit history look | | | | consumers up their credit scores rapidly. But, it may not |
| younger than it is. Your credit score factors in the age | | | | be as easy as you think. Here's what I mean: |
| of your oldest account and the average age of all | | | | Rapid re-rescoring agencies do not and cannot deal |
| your accounts. So closing accounts, particularly older | | | | directly with consumers. They work with lending |
| accounts can ding your score. | | | | institutions. So you can't contact them directly to work |
| B. Closing accounts reduces the total credit available to | | | | on your behalf if you're a consumer. |
| you, making your debt utilization ratio soar. Remember | | | | Rapid re-rescoring agencies cannot and do not simply |
| that the FICO formula measures the gap between the | | | | "remove" negative items. That is, they can't magically |
| credit you use and your total credit limits. The wider | | | | erase legitimately negative items. If, however, you have |
| the gap, the better. If you suddenly lower that limit by | | | | proof of an error, a rapid re-rescoring agency can |
| shutting down accounts, the gap narrows - and that's | | | | quickly get the item deleted. Such proof might include a |
| a bad thing. | | | | letter from a creditor explaining that your debt is paid |
| 2. What's the best way to deal with a collection | | | | or was never yours. |
| agency when you don't have the money to pay | | | | Rapid re-rescoring agencies cannot delete any items |
| them? | | | | that are in dispute. If you already have an item in |
| The Federal Fair Debt Collection Practices Act clearly | | | | dispute with one or all of the major credit bureaus, |
| states that you do not have to deal with credit or debt | | | | rapid re-scoring agencies cannot delete the item(s). |
| collectors. You can stop collectors from calling and | | | | 5. What is fastest way to improve my credit score? |
| writing with a "cease and desist" letter. This is short for | | | | Pay your bills on time. Delinquent payments and |
| "cease communication". Once this letter is received by | | | | collections can have a major negative impact on your |
| your collector, they will no longer be able to legally | | | | score. |
| contact you by phone, at work, by fax, by certified | | | | 6. Where can I get my credit reports and credit |
| mail, by nothing. | | | | scores? |
| Of course, to improve your credit score, you will | | | | I get my scores from I like using Suze's site because |
| ultimately want to get the debt removed from your | | | | with a few clicks of the mouse you can get all 3 |
| credit report by either getting the collector to agree to | | | | reports (from the major bureaus) and your FICO |
| delete the item when you pay in full or by getting the | | | | score, plus a kit to help you improve your scores. |
| credit bureau to delete the item. | | | | 7. Is personal information included on my credit report? |
| 3. Is there a limit to how many items I can dispute on | | | | Personal information such as your race, color, religion, |
| my credit report? | | | | national origin, sex and marital status is NOT included |
| Technically, no. But keep in mind that if you try and | | | | on your credit report. |
| dispute 7, 10, or more items on your credit report at | | | | Myra Golden runs a credit score repair agency, a |
| one time, you may not be taken seriously and the | | | | complete resource for improving your credit score. |
| credit bureaus may respond telling you that your | | | | |