Table Of ContentNew York Chicago San Francisco Lisbon
London Madrid Mexico City Milan New Delhi
San Juan Seoul Singapore Sydney Toronto
Copyright © 2008 by EUNTK Corporation. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no
part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system,
without the prior written permission of the publisher.
ISBN: 978-0-07-159067-9
MHID: 0-07-159067-6
The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-159066-2, MHID: 0-07-159066-8.
All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked
name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the
trademark. Where such designations appear in this book, they have been printed with initial caps.
McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate train-
ing programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com.
Disclaimer: While the publisher and the author have used their best efforts in preparing this book.they make no representations or war-
ranties with respect to the accuracy or completeness of the contents.Neither the publisher nor author shall be liable for any loss of profit
or commercial damages, including but not limited to special, incidental, consequential or other damages. If legal advice or other expert
assistance is required, it is strongly recommended that the services of a competent and experienced professional should be sought.
TERMS OF USE
This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work.
Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one
copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon,
transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent. You may use
the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may
be terminated if you fail to comply with these terms.
THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO
THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUD-
ING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND
EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WAR-
RANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant
or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free.
Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in
the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through
the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive,
consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the
possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises
in contract, tort or otherwise.
For Grammy and Gramps—
On behalf of Bennett, Brianna, Cameron, Jacob and Tyler
This page intentionally left blank
T
his American Credit Repair volume from Everything U Need to Know...
(EUNTK)would not be possible without the support and assistance from the
following companies and individuals: The National Association of Credit Counseling,
Federal Debt Consolidation Services, AmerUSA Corporation (AmerUSA.net),
Ronald and Mary Rhodes, Marc and Terry Banning.
This page intentionally left blank
Introduction............................................................................................................1
Chapter 1: The Basics of Credit Reporting, Part I: The Agencies and the Laws........ 3
Credit Reporting Agencies...................................................................... 4
The Fair Credit Reporting Act (FCRA).................................................. 5
The Fair and Accurate Credit Transactions Act (FACT Act)................. 9
Chapter 2: The Basics of Credit Reporting, Part II: The Data................................1 1
Where Does Credit Report Information Come From?.......................... 12
What Is a Credit Score and Why Should U Care?.................................1 4
Chapter 3: The Basics of Credit Reporting, Part III:
Who Is Entitled to See Your Credit File..............................................19
Permissible Purpose.............................................................................. 20
Employers............................................................................................. 33
Illegal Requests for Your Credit Report............................................... 34
Chapter 4: Your Credit Report: Getting a Free Copy — For Real!...........................3 7
AnnualCreditReport.com...................................................................... 38
Annual Credit Report by Mail or Phone............................................... 39
FTC Facts for Consumers Brochure......................................................4 2
Chapter 5: Understanding Your Credit Report: How to Read the Big Three..............4 9
Personal Information............................................................................. 50
Employment Information...................................................................... 50
viii
American Credit Repair
Scoring (Credit Score).......................................................................... 51
Public Records...................................................................................... 51
Collections............................................................................................ 52
Revolving Accounts.............................................................................. 52
Installment Accounts.............................................................................5 3
Mortgage Accounts............................................................................... 53
Inquiries................................................................................................ 53
Chapter 6: Repairing Your Credit Report, Part I: The Dispute Process....................5 5
FCRA Section 611................................................................................ 56
Inaccurate or Incomplete Information...................................................6 6
FCRA Section 605................................................................................ 69
Outdated Negative Information.............................................................7 4
Negative Items That Do Not Belong to You.........................................7. 6
Chapter 7: Repairing Your Credit Report, Part II: The Dispute Letter.....................7 9
Verification Forms Used by CRAs....................................................... 80
Fill-In Dispute Forms............................................................................ 82
Picking Your Battles............................................................................. 83
Writing Your Own Dispute Letter........................................................ 84
Sample Dispute Letters......................................................................... 85
Sending Your Dispute Letter................................................................ 90
What’s Included in a CRA’s Response to a Dispute.............................9 1
Chapter 8: Repairing Your Credit Report, Part III:
When Things Don’t Go Your Way........................................................93
Sending a Second Dispute Letter.......................................................... 94
100-Word Consumer Statement............................................................ 97
Speak to a Professional If Necessary.................................................... 99
The Reality of Suing a Credit Reporting Agency............................... 100
ix
Table of Contents
Chapter 9: Collection Agencies: How to Deal with These Bad Guys.......................1 03
How a Collection Agency Operates.................................................... 104
The Fair Debt Collection Practices Act (FDCPA).............................. 104
Validation of the Alleged Debt............................................................1 09
Drafting a Verification Request Letter................................................1 10
Stop Calling Me...................................................................................1 16
Stop Calling My Employer..................................................................1 18
How to Settle with a Collection Agency............................................. 120
Chapter 10: How to Deal with Secured Accounts:
Plus Student Loans & Tax Liens....................................................131
Repossession....................................................................................... 132
Foreclosure.......................................................................................... 134
Student Loans...................................................................................... 136
Tax Liens.............................................................................................1 38
Chapter 11: Bankruptcy: The Pros and Cons of Filing.............................………...1 41
The Term “Bankruptcy”......................................................................1 42
Chapters 7, 11 and 13.......................................................................... 142
Hiring a Bankruptcy Attorney.............................................................1 45
How Bankruptcy Affects Your Credit Report.....................................1 45
Chapter 12: Raising Your Credit Score in 10 Days:
Fast Fixes When Applying for a Mortgage.......................................1 47
The Rapid Re-Score............................................................................ 148
Determining the Factors That Are Affecting You Score.....................1. 49
Assembling Your Evidence.................................................................1 50
Fast Fixes That Do Not Require Money..............................................1 51
Fast Fixes That Require Money...........................................................1 56
