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What Is A Credit Score?
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A credit score is a number that reflects your risk level, as an individual, to a
lender. The higher the number, the lower the risk will be to the lender. As you
apply for increased credit or attempt to make a purchase, the lender will check
your ability to pay back that loan. The more negative marks you have on your credit
report, the less likely you will be granted the loan or purchase you requested.
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How Often Can Individual
Credit Scores Change?
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Credit scores are not fixed; instead they reflect a consumer’s current credit situation,
based on the information in the credit report at the time the report is pulled.
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What Is A Credit Report
And What Is It Used For?
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A credit report is a history of your use of credit and other personal information
which gives lenders a snapshot of your credit history. Whether you are applying
for a credit card, a car loan, a personal loan or a mortgage, lenders want to determine
your credit risk level. In short, lenders want to know if they can rely on you to
pay them back on time.
There are three major credit reporting agencies: Equifax, Experian and TransUnion.
These agencies collect data and maintain records on millions of Americans and their
bill payment histories. The reports tell lenders how much credit you've used, what
types of credit you've used, how long you've had various accounts, and whether you
pay your bills on time. Every year, billions of lending decisions are based upon
the information in those reports.
Your credit report and score strongly influences how much credit that will be made
available to you and the terms you are offered by lenders. The speed you are approved
for credit, the interest rates you get, and decisions about the amount of credit
are all determined by the information found in your credit report.
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What’s In Your Credit Report?
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Although each credit reporting agency formats and reports this information differently,
all credit reports contain basically the same categories of information.
Identifying Information.
Your name, address, Social Security number, date of birth and employment information
are used to identify you. These factors are not used in credit scoring. Updates
to this information come from information you supply to lenders.
Trade Lines.
These are your credit accounts. Lenders report on each account you have established
with them. They report the type of account (bank card, auto loan, mortgage, etc.),
the date you opened the account, your credit limit or loan amount, the account balance,
and your payment history.
Credit Inquiries.
When you apply for a loan, you authorize your lender to ask for a copy of your credit
report. This is how inquiries appear on your credit report. The inquiries section
contains a list of everyone who accessed your credit report within the last two
years. The report you see lists both "voluntary" inquiries, initiated by your own
requests for credit, and "involuntary" inquiries, such as when lenders order your
report so as to make you a pre-approved credit offer in the mail.
Public Record and Collection Items.
Credit reporting agencies also collect public record information from state and
county courts, and information on overdue debt from collection agencies. Public
record information includes bankruptcies, foreclosures, law suits, wage attachments,
liens and judgments.
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How Is My Credit Score Calculated?
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The formula used to calculate your FICO score includes information based on several
factors:
35% on your payment history
30% on the amount you currently owe lenders
15% on the length of your credit history
10% on the number of new credit accounts you've opened or
applied for (fewer is better)
10% on the mix of credit accounts you have (mortgages, credit
cards, installment loans, etc.)
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Are "Credit Bureaus" Government
Agencies?
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No. Credit reporting companies are just that - companies. They are in business to
make money, and they generate their income by selling credit reports to creditors.
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How Long Do Negative Items
Stay On a Credit Report?
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Negative credit accounts, or trade lines, can remain on your credit report for up
to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries
on your credit report may remain for 2 years. These are the maximum times that are
permitted by federal law for reporting agencies to show negative items; however,
these times are not mandatory. At any time, a creditor or credit bureau may
remove a derogatory remark from your credit report if the consumer requests an investigation
into remarks that they feel are incorrect.
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Is There Anything That Cannot
Be Removed From A Credit Report?
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No, all information reported by the credit bureaus are subject to the same laws
and criteria. We may challenge on your behalf any items you request and the credit
bureaus must investigate these items.
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Why Should I Care What Is
In My Credit File?
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It is your credit report that creditors use to determine if they will extend credit
to you. If you have inaccurate information on your report, you may be turned down
for the loan you need or pay unnecessary high interest rates.
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Why Do The Credit Bureaus
Have Separate Reports For Husband And Wife?
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The credit bureaus collect information based on individual Social Security numbers.
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Do All Three Credit Bureaus
Report The Same Information?
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Depending on which lender you go through will determine which credit bureau the
item will appear on. It could be one, two or all three bureaus.
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Who Has Permissible Purpose
To Access My Credit File?
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Under the Fair Credit Reporting Act, a credit reporting company may only disclose
your credit report if someone is:
- Granting credit, reviewing your account, or collecting on your account
- Reviewing you for employment purposes
- Reviewing your application for insurance
- Reviewing your eligibility for a license or government-related benefits
- Providing information for a business transaction, such as renting an apartment
- Has a court order
- Has an IRS subpoena
- Someone to whom you have given written permission
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How Do Mistakes Get On
My Credit Report?
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It is estimated that as many as 80% of credit files have
errors. If your credit report contains errors, it is often because the report is
incomplete, or contains information about someone else. This typically happens because:
- You applied for credit under different names (for example, Margaret Jones versus Margaret Jones-Smith)
- Someone made a clerical error in reading or entering name or address information from a hand-written application
- You gave an inaccurate Social Security number or the number was misread by the lender
- Loan or credit card information was inadvertently applied to the wrong account
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Who Can Remove Items From
My Credit Report?
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Only the credit bureaus have the power to remove items from your credit report.
But, as required by law, the credit bureaus must delete inaccurate, unverifiable,
or outdated information.
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Is Credit Restoration Legal?
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Absolutely. The Fair Credit Reporting Act allows anyone to dispute inaccurate
items on their credit reports. There's nothing we do that you cannot do yourself
when it comes to fixing your credit situation. Individuals can restore their credit
on their own but this can take time and a lot of knowledge when it comes to the
credit laws. That's why we are here to help since we have the experience and knowledge
to get you the positive results.
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How Long Does The Process Take?
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Everyone's credit situation is completely different, so how long it takes for you to achieve
your expected results depends on the number of derogatory credit items on your reports,
your participation in getting credit reports to us, and the level of credit bureau
cooperation. We will do our part, the auditing and creating dispute letters based on your
reports, usually within 48 hours from the date we receive them. Most of the wait-time
after is usually spent waiting for the credit bureaus or creditors to respond.
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How Much Will You Increase
My Credit Score?
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Many of our clients have seen an increase of 100 points or more*; however, the actual
amount will vary per customer. There are many factors that affect a credit score
besides derogatory items. For example, the ability to pay down revolving debt,
the type of credit you have, your length of credit history, even the number of
inquiries on your credit file. It is especially important that no current accounts
fall into a negative status.
* Results may vary by individual.
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What Do I Have To Do?
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After you have completed the online enrollment documents, fax or email or mail your
identification documents to our processing department. A list of required
documents has been provided below:
Social Security Verification (as required by the credit reporting agencies)
- Photocopy of your Social Security card
- Photocopy of your pay stub displaying your full Social Security number
- Photocopy of your W-2
- Photocopy of your health insurance card that contains your full Social Security number
Address Verification (as required by the credit reporting agencies)
- Clear copy of a current bill (utility, telephone, credit card, etc.) with your name and address clearly
- Clear copy of your driver’s license with current mailing address
Your dispute documents will be prepared and mailed to you upon receipt of your identification.
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Can I Restore My Own Credit?
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Yes, you can. You can also represent yourself in a court of law, and do your own oil
changes on your vehicles. We are a service company. Just as you are probably better
at what you do than we would be, we are probably better at credit restoration than
you would be. We offer experienced, professional help at very affordable rates for
your convenience and benefit.
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Can You Remove A Bankruptcy Or
Foreclosure?
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Yes. If the listing is inaccurate, incomplete, misleading or unverifiable, it can be removed.
The severity of bankruptcies, foreclosure, liens, etc. does not factor into their removal as
much as you would believe. There are a number of elements, unrelated to severity, upon which
such items can be successfully removed.
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Will The Credit Bureaus Respond
To All Of The Disputes I Send Them?
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The credit bureaus are required by law to respond to all correspondence. It is not uncommon
for credit agencies to send letters stating they want more information, or that they will not
re-verify an account. These types of responses are very common and customers should not be
alarmed if they receive them. Customers must continue to send all correspondence they receive
from the agencies to the processing center.
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How Long Will It Take The
Credit Agencies To Respond After I Send Them My Dispute Letter?
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You will receive updated credit reports from all three credit bureaus after 30 to 45 days.
At that time you will see what was deleted and will need to mail the originals to us so
that we can continue working on the remaining items. You will actually know what was
deleted before we do, which is why it is so important that you forward all credit bureau
correspondence within a few days of receiving it. If the credit agency does not respond
to your dispute letter, do not be alarmed, a new dispute letter will be generated when
your file is reviewed by the processing center every 60 days.
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When I Receive My Dispute
Letter, Can I Make Changes And Add Information?
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Absolutely, any additional information that the customer would like to provide will help
expedite the credit restoration process. Simply write on the dispute letter any changes or
additional information you may have regarding any specific account, and forward it to
the processing center. The processing center will make the necessary corrections on the
dispute letter and forward the customer a revised copy to sign and send to the credit
agencies. Remember, this is a partnership.
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How Can I Check My Progress?
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Every 60 days, your file will be reviewed. Based on the documentation received from you,
(credit report updates and letters from creditors) a new dispute will be generated and
forwarded to you to review and sign. Along with the new dispute document, you will receive
a status update report showing the progress and deletion of accounts to date. You can
also access our Web site at www.united-credit.org for an
up-to-date account status.
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Can I Continue The Process After My
Contract Expires?
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Yes, contact your VR-Tech sales agent. Due to the increased number of identity fraud cases
reported annually, it is recommended that you continue your service to monitor and review your
credit reports on a quarterly basis. This will ensure your reports remain accurate and that no
new information is added without your knowledge.
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Are Refunds Offered If I Am Not Satisfied
With The Service?
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Yes. Customer satisfaction is very important to us. Customers will be charged an initial $125.00 set-up fee,
and $25.00 for each negative account removed or corrected during the time they were involved in the credit
education process. (Customers must complete three dispute cycles.) Any remaining money from the initial
payment made for the service will be refunded to the customer immediately.
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How Does My Credit Score Change If I Open Or
Close Credit Accounts?
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At first glance, it may seem like a good idea to close old credit accounts or open a host
of new ones. But it’s not.
More accounts can hurt, not help. Financial experts agree that you should not open multiple
new accounts just to show a credit history. If you have had little credit in the past,
build your credit history slowly. Open no more than one or two accounts initially.
Also, don’t close your old accounts. A long credit history has a positive impact on your
credit score. Having a large number of accounts in good standing with zero balances is a plus,
not a negative.
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If I Keep Paying My Bills
Will That Raise My Credit Score?
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Paying your bills on time should do nothing but help your credit score. Good payment histories will
help clients who are trying to buy a home, refinance a home, or qualify for new credit. We often tell
people that while we work on the past, you should be working on the future.
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When The Process Is
Completed Will I Be Approved For A Loan?
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You should be in a much more favorable position as long as you meet several requirements of the
credit grantor, such as a good credit history over the past 6-12 months, length of employment,
debt ratio, length of time at current residence, and have amount of down payment, etc.
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Who Do I Contact If I
Have Questions?
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UCES Customer Service representatives will handle all of your service needs. If you need
to make contact, you will be provided with a member service number, a special e-mail address
and a fax number that goes directly to member services.
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Check Out Our Success Rate!
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