My intention was to give you a broad overview on how to; 1) Remove
negative history from your account and; 2) Improve your credit score.
In your response to your claims of "cutting and pasting", I will share
my thoughts in this manner (please see my responses below for further
details):

With the new year upon us I decided I should check my credit score. I
was rather surprised that it came back with a score of 587. I thought
my credit was pretty decent. I carry no balances on credit cards, have

a car paid off, spend only 14% of my income on housing, pay all my
bills on time, have 6 months of emergancy fund in a high-interest
savings account, etc. What can I do to raise my score?

RESPONSE: The first thing I would look at is your DTC (debt to credit)
ratios. What is the ratio between the total credit available vs the
total credit used? If it is in excess of 50%, lowering the DTC ratio
will have immediate and positive effects on your credit score. You
mention one score (587), but in fact you have 3. You should pull all
three credit reports from Experian, TransUnion and Equifax to check for
accuracies and or omissions. See my previous post on how to increase
your credit score for further details.

According to the report I have 6 accounts in good standing and 2
"potentially negative" accounts.

RESPONSE: As mentioned by previous posters, you have a 66% ratio of
bad credit history vs good.
------- Negative Accounts:
Credit Card closed late 2003. This was a corporate credit card from a
previous job. Status: Paid,Closed/Collection account.
I have previously tried to have this removed without any luck. I have
only used the dispute option on annualcreditreport.com and have not
called/written a letter to dispute the charge. Would I have better
luck contacting a person? Should it be removed because it was a
corporate account?

RESPONSE: If it was a corporate credit card then it should have been
in the company's name, were you a co-signer on the account or was it a
personal card that you used for business purposes? As mentioned
previously, if documented correctly, the credit bureaus are mandated by
law to respond within 30 days. The process and form required is a
Credit Reverification Request (You can get this from the 3 bureaus or I
can send you a copy). If the credit bureaus can not verify it, it must
be removed. If the credit bureaus find it to be inaccurate or
incomplete, it must be removed. If it was a corporate card in the
company's name you must compose evidence in the form of statements from
both you and the company in question that; 1) Release you of percieved
responsibility and 2) A documented statement of ownership of the credit
account from the corporation. You claim to have taken some actions
previously, so you should have rec'd the results of the reinvestigation
no later then 5 days after completion. What did that say?
------- Bank Account, account closed 1998, showed up on credit report in late
2005. Status: collection account.
I owe an old bank $500 from 7 years ago, but they have not reported it
to the credit bureaus until 2005. Will this account "fall off" in a
few months, or does it take 7 years from when it is reported to be
cleared off my report? How should I handle this account? Can I
negoitiate with the collection agency to pay off the balance in full to

get the entry removed entirely from my report? Any other suggestions?

RESPONSE: You may be able to remove this by making a written request
to remove incorrect information by creditors. You should negiotate
directly with the bank (and copy the collection agency) and make one of
the following arguments/positions; 1) The date of default is different
then what is stated on your credit report, 2) A willingness to repay
defaulted loan in an exchange for an agreement to remove all instances
of negative history. I wouldn't hold your breath on this one, as it
appears that you "did the crime" so now you have to "do the time".
Accurate negative information typically remains on your credit report
for 7 years, but its importance takes on less relevance as you put time
between the infraction and future positive credit behavior. I have
form that you are welcome to if you desire.
------- ------- Postive Accounts:
Credit Card opened since ate 2003, Never Late, $5000 limit
I pay this credit card every month so that I do not pay any interest on

it. However the report shows a balance each month. Do I need to pay
off the card completely before the billing date to show a $0 balance?
Does this balance need to adhere the the 60% rule?

RESPONSE: If you requested the report before you made the payment, the
payment will not be reflected in the balance on the credit report. If
you use it every month, then the balances reflected on your credit
reports will change accordingly. Keeping the DTC ratio to anything
below 50% will have a positive effect on your credit scores.
------- Credit Card that was open from mid 2001 to mid 2005, Never Late,
$25,000 limit
I was an authorized user on this card, again my Mothers. Account was
closed at my request. Would it be a good idea to restore the account
as an authorized user? Does an authorized user get the perks of a good

account on their credit report?

RESPONSE: Reactivating your card will be percieved as a new account
and you will not credit for past good deeds. If you can establish
credit in your name, it will have a more profound effect on your credit
score then being an authorized user on your mother's account. Although
getting a cosigner or guarantor will help you get credit, it may not
help you build credit in all situations. On some cosigned accounts, the
creditor will report the information on the cosigner's credit report
only, not on yours. The best option is to ask if you can use a
guarantor instead of a cosigner. It should make no difference to the
creditor.
------- Credit Card opened since early 2005, never late, $1500 limit
I don't use this card anymore, I keep the account open to build credit

RESPONSE: Not using the card will not aid you in building credit. Use
the card to make small purchases every month (pay the balance due to
avoid interest).
------- Car Loan opened late 2000, closed early 2005. Never Late.
My car is now paid off, I was never late. This was a joint account
with my Mother.

RESPONSE: For the same reasons stated above relative to the co-signed
credit account, this loan may have not contributed to the building of
your credit history/score.
------- ------- What else can I do to raise my score? From what I've read online my
score appears to be lower than it should be based on most of my
accounts being in great standing. How much of an increase should I
expect if I pay off the $500 to the Bank? Does the status that they
change the account to make a difference in my score?

RESPONSE: It appear that your mother may have been the benefactor of
your good credit history (you can confirm this by having her pull her
credit to see if the same accounts are listed). No one can accurately
predict whether you will get a boost in scores by paying the bank and
no one can tell you how long and how much your score can be improved.


I know I have a lot of questions, but credit scores are pretty new to
me. I appreiciate any help anyone can provide.

John,

I would agree that for the undisciplined, your concerns/suggestions
would be valid (Road to Ruin).

I didn't invent the FICO scoring system, but understand the value and
consequences of not having a good one.

Your home is not the only situation in which you need to be concerned
about your history/scores; autos loan rates, credit card rates and
misc. loans from banking institutes are all predicated on this system
(it is also rumored that some credit assessment/review is a part of the
hiring process with some employers). Like it or not, inactive good
accounts have less effect then active good accounts when it comes to
FICO scoring. For those that fall under the "indentured servant"
category by your definition, it is still better to charge a little
every month (and pay the balance in full at month's end) then to pay
cash (with respect to having an impact on your FICO score).

There are valid reasons for having "paper trail" and is in principle,
meant to protect the interests of both the borrower and lender;
accessment and mitigation of risk are common business practices in
every industry, not just lending.

Your message are for a segment of our society, but their are those that
know how to use credit to their advantage and benefit from the
principles of leverage and OPM. Credit in itself can be either good or
bad, depending on its application.

Regards,

Scott Miller
Commercial and Residential Lender/Broker

www.RealEstate-IQ.com
www.EZMortgageLoanz.com

ficoscorey2006[at]yahoo.com wrote:
- quote -

Those are some pretty substantial "marks".

- quote -

John already gave you some (in my unprofessional opinion) good advice.
This time, he was talking to $cott.

Best regards,
Bob

- quote -

I have no debt, just some marks on my report from a few years ago.

As for the "advise" from $cott, I apprieciate your time cutting and
pasting a responce to someone elses issue, but do you have any advise
for the questions I asked?

In article <1136371825.766063.43220[at]g47g2000cwa.googlegroups.com> ,
"$cott" <ezmortgageloanz[at]aol.com> wrote:

- quote -

More advice that will lead down the road of ruin. The only
reason to have a credit score or credit file is so you can
fall into the debt trap and be a slave to the lenders for the
rest of your life. This advice is a cook-book entry for how
to become an indentured servant to the credit card companies.

It is better to get rid of debt, and don't incur any new debt.
The only exception would be to buy a home for your family. Otherwise,
save up and pay cash. Let the credit card companies earn their
living off of people who enjoy being wage slaves, and not you.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

As a mortgage professional, part of my service to my clients is to
assist them with amending and improving their credit scores.

I would take the following actions to remove your negative credit
history:

1. Dispute Incomplete and Inaccurate Information in
Your Credit File. Under the Fair Credit Reporting Act, you have the
right to dispute all incomplete or inaccurate information in your
credit file. Once the credit bureau
receives your letter, it must reinvestigate the items
you dispute and get back in touch with you within
30 days. (45 days if you send the bureau additional
relevant information during the 30-day period).
2. Consider Adding a Brief Statement to Your Credit File. If the
credit bureau's investigation doesn't resolve
the dispute to your satisfaction, you have the right
to file a brief statement stating the nature of the dispute.
The bureau must include your statement, or
a summary or codification of it, in any report that
includes the disputed information.
3. Add Positive Account Histories to Your Credit File. Often, credit
reports don't include accounts that you
might expect to find. Some major commercial lenders
don't report mortgages or car loans. Local banks
or credit unions often don't provide information to
credit bureaus.
4. Add Information Showing Stability to Your Credit File. Creditors
like to see evidence of stability in your file.
If any of the items listed below are missing from
your file, you may want to send a letter to the credit
bureaus asking that the information be added.

I have the various forms that are required to document your case and if
interested, you can contact me outside of this forum for a copy of the
same.

Here are some ideas on how to increase your credit score:

1. Build Credit in Your Own Name. If you are married, separated, or
divorced, and most of the credit you obtained is in your spouse's or
exspouse's name only, you should start to get credit in your name,
too.
2. Ask Creditors to Consider Your Spouse's Credit
History. Although a credit bureau cannot include information about
your spouse's positive credit accounts on
your credit report, if you are applying for a loan, credit card, or
other type of credit, you can always ask the creditor to consider any
of your spouse's accounts that reflect on your creditworthiness, too.
3. Get Credit Cards and Use Them Wisely. Most credit reports show
payment histories for 24-36
months. If you charge something every month, no
matter how small, and pay at least the minimum
required every month, your credit report will show
steady and proper use of revolving credit (and your credit score will
improve).
4. Open Deposit Accounts. Creditors look for bank accounts as a sign
of stability. They also look for bank accounts as a source of how you
will pay your bills.
5. Work With Local Merchants. Another way to repair your credit is to
approach a local merchant (such as an electronics or furniture store)
and arrange to purchase an item on credit.
6. Obtain a Bank Loan. One way to repair your credit is to take some
money
you've saved and open a savings account. You
ask the bank to give you a loan against the money
in your account. In exchange, you have no access to
your money-you give your passbook to the bank
and the bank won't give you an ATM card for the
account-so there's no risk to the bank if you fail to
make the payments. If the bank doesn't offer these
types of loans, apply for a personal loan and offer
either a cosigner or to secure it against some collateral
you own.

I would suggest that you do some further research on sites like
myfico.com for further ideas.

Hope this helps and good luck.

Regards,

Scott Miller
Commercial and Residential Lender/Broker

"I've got money, want some?"

www.RealEstate-IQ.com
www.EZMortgageLoanz.com

In article <1136329515.075555.200690[at]g14g2000cwa.googlegroups.com> ,
ficoscorey2006[at]yahoo.com wrote:

- quote -

Is "potentially negative" like being "somewhat pregnant"?
These are huge craters in your credit. They are two charge
offs due to non-payment. Of the 6 items on your record, 1/3
are credit disasters.

The charge-off for the work credit card should be investigated.
If you paid the bill, it should be ok. If the employer failed
to pay the bill, then it shouldn't be your fault. Try disputing
it using the official formal dispute procedure. That would be
the procedure that is documented at each of the credit agencies,
not one from the back of a cracker jack box. If you don't do it
right, it isn't legal or binding.

The $500 bank thing should be cleaned up. What has happened
is that the bank gave up on you, and sold the debt to a boiler
room company for something like $8. Anything over $8 that the
boiler room people get is a windfall. Since the debt was just
sold, it likely just started to be reported, and will stay out
there for many years. The quicker you take care of it, the
quicker it goes away. Offer $100, and they will likely be
tickled pink. Just make sure you get any offer for settlement
in writing first, and pay only by money order or certified check.
Not following these two rules will likely end up with you getting
screwed by these people. If you write a check, they will try
to draft your account later for more money. If you don't get the
deal in writing, they will forget about the deal and consider your
money just one payment.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

With the new year upon us I decided I should check my credit score. I
was rather surprised that it came back with a score of 587. I thought
my credit was pretty decent. I carry no balances on credit cards, have
a car paid off, spend only 14% of my income on housing, pay all my
bills on time, have 6 months of emergancy fund in a high-interest
savings account, etc. What can I do to raise my score?

According to the report I have 6 accounts in good standing and 2
"potentially negative" accounts.
------- Negative Accounts:
Credit Card closed late 2003. This was a corporate credit card from a
previous job. Status: Paid,Closed/Collection account.
I have previously tried to have this removed without any luck. I have
only used the dispute option on annualcreditreport.com and have not
called/written a letter to dispute the charge. Would I have better
luck contacting a person? Should it be removed because it was a
corporate account?
------- Bank Account, account closed 1998, showed up on credit report in late
2005. Status: collection account.
I owe an old bank $500 from 7 years ago, but they have not reported it
to the credit bureaus until 2005. Will this account "fall off" in a
few months, or does it take 7 years from when it is reported to be
cleared off my report? How should I handle this account? Can I
negoitiate with the collection agency to pay off the balance in full to
get the entry removed entirely from my report? Any other suggestions?
------- ------- Postive Accounts:
Credit Card opened since ate 2003, Never Late, $5000 limit
I pay this credit card every month so that I do not pay any interest on
it. However the report shows a balance each month. Do I need to pay
off the card completely before the billing date to show a $0 balance?
Does this balance need to adhere the the 60% rule?
------- Credit Card that was open from mid 2001 to mid 2005, Never Late,
$25,000 limit
I was an authorized user on this card, again my Mothers. Account was
closed at my request. Would it be a good idea to restore the account
as an authorized user? Does an authorized user get the perks of a good
account on their credit report?
------- Credit Card opened since early 2005, never late, $1500 limit
I don't use this card anymore, I keep the account open to build credit
------- Car Loan opened late 2000, closed early 2005. Never Late.
My car is now paid off, I was never late. This was a joint account
with my Mother.
------- ------- What else can I do to raise my score? From what I've read online my
score appears to be lower than it should be based on most of my
accounts being in great standing. How much of an increase should I
expect if I pay off the $500 to the Bank? Does the status that they
change the account to make a difference in my score?

I know I have a lot of questions, but credit scores are pretty new to
me. I appreiciate any help anyone can provide.