Bible Based Financial Teaching, Training, Counseling 
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Credit Repair Services

Intro to Credit Repair Background Information Your Credit Score Negative Information Credit Repair Scams Short Course to Credit Repair

Credit Repair Services

INTRODUCTION TO CREDIT REPAIR
Christian Financial Ministries (CFM) can help you take simple and effective legal and ethical steps to improve or repair your credit history.

• If you have been turned down for insurance, jobs and more because of negative comments on your credit report that were not of your making, you are not alone. A consumer reports magazine recently reported that 48% of all consumers have errors in their credit files, and 12% of those errors are severe enough to result in credit denial.
• Regardless of who or what caused your poor credit record, negative comments can stay in your credit files for 7 to 10 years!
• You have legal rights. There are many legal actions you can take to remove incorrect or outdated and misleading information from your credit file.
• You can do the work yourself. It will require time, red tape to cut, legalese to decipher, letters to prepare, and voice-mail gauntlets to run.

BACKGROUND ON CREDIT REPORTS AND SCORES:

Your Credit report contains information on where you work and live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Consumer Reporting Agencies (CRAs) gather this information and sell it to creditors, employers, insurers, and others. The most common type of CRA is the credit bureau. The three major national credit bureaus are:

1. Equifax: 1-800-685-2005 or www.equifax.com
2. Experian: 1-800-397-3742
3. TransUnion: 1-800-916-8800

By September 1, 2005, all consumers will be eligible to receive a free annual credit report from each of the three major CRAs. To check your eligibility and order your report, you must go through www.annualcreditreport.com or call 1-8770322-8228.

YOUR CREDIT SCORE

The information in your credit report is used to calculate your FICO credit score--a number generally between 300 and 850 that rates how risky a borrower you are. The higher your score, the less risk you pose to your creditors. Your FICO score is available form www.myfico.com for a fee. Free credit reports do not contain your credit score.

NEGATIVE INFORMATION IN YOUR CREDIT REPORT

Negative information concerning your use of credit can be kept in your credit report for seven years. A bankruptcy can be kept for ten years. Information abut a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

Anyone who denies you credit, housing, insurance, or a job as a result of a credit report must give you the name, address, and the telephone number of the CRA that provided the report. Under the Fair Credit Reporting Act (FCRA), you have the right to request a free report within 60 days if a company denies you credit based on the report.

If there is inaccurate or incomplete information in your credit report:

1. Contact both the credit reporting agency and the company that provided the information to the CRA.
2. Tell the CRA in writing what information you believe is inaccurate

Under The Fair Credit Reporting Act, the information provider is required to investigate and report the results to the CRA. If the information is found to be incorrect, it must notify all nation-wide CRAs to correct your file. If the investigation does not solve your dispute, ask that your statement concerning the dispute be included in your file. A notice of your dispute must be included anytime the CRA reports the negative item.

If the information in your credit file is accurate, only time, hard work, and a personal debt repayment plan will improve your credit report.

CREDIT REPAIR SCAMS

Credit repair companies advertise that they can erase bad credit for a hefty fee. Don't believe it! Under the Credit Repair Organization Act, credit repair companies can't require you to pay until they have completed promised services. They must give you:

1. A copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract;
2. A written contract that spells out your rights and obligations; and
3. Three days to cancel without paying any fees.

Some credit repair companies promise to help you establish a whole new credit identity. you can be charged with fraud if you use the mail or telephone to apply for credit with false information. It is also a federal crime to make false statements on a loan or credit application, to give a false Social Security number, or to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

If you have lost money to a credit repair scam, contact your state or local consumer affairs office or the National Fraud Information Center (1-800-876-7060).

SHORT COURSE TO CREDIT REPAIR

Here is a checklist to follow and letters to adapt to repair your own credit.

1. Make sure Jesus Christ is Lord of your life and your finances.
2. Get on a budget. The Bible tells us to learn to be the best possible steward/manager of all that He has given us.
3. If you have not already done so, order your credit report from one of the three Credit Bureaus listed above.
4. Review your credit report to identify outdated, misleading, or erroneous information and/or to add current and clarifying information.
5. Write a letter to the CRA using our Creditor Letter Library.
6. Keep copies of everything you send and receive, as well as detailed notes of any conversations you may have with your creditors.
7. Check your report again in three months to ensure your changes are posted. If they are not, contact the CRA again and attach a copy of your first letter. If the changes are posted, check your credit report again once a year.
8. REMEMBER, stay away from anyone who tries to charge you to "repair" or "fix" your credit report. Why pay anyone for something you can do yourself?