The official publication of the NACC, AAICC & HAICC Chambers of Commerce. Visit www.mynacc.org
THE
CONSUMER ADVOCATE
VOL. 2 NO.3
7 Steps to Increase Your Credit Score Fast
1. Order fresh new copies of your credit reports from all 3 bureaus: Equifax, Experian and TransUnion. We will help you with this. Credit reports are constantly changing. Therefore, it is important to order up-todate copies. This will give you the ability to see your score through this process as it grows. A good rule of thumb to know is: If someone else runs your score or reports, this will hurt your score. However, if you order your own credit reports (which we will help you with) your score will not be affected. You also may want to pay for credit monitoring. This will give you the ability to see your reports and score day-to-day and track changes as they happen.
2.Correct all inaccuracies on your Credit Reports. Go through your credit reports very carefully. Especially look for: late payments, charge-offs, collections or other negative items that aren't yours; accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full; accounts that are still listed as unpaid that were included in a bankruptcy; negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report (you must be careful with this last HAICC President, Damarys Butler fights for Hispanics against credit scams
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Start a Credit Repair Business
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earn to make money with a successful credit repair business or assist your clients with credit repair issues (non attorneys must have a NYC Consumer Affairs license to start a credit repair business). If you are helping existing clients or starting a business, you need this training.
What is the NACC’s Paralegal Program Credit Repair Academy? We offer our credit repair training weekdays or Saturdays, designed to fit your
busy schedule and budget. Our students are mortgage professionals, real estate salespersons and brokers, auto finance professionals, entrepreneurs and credit repair professionals who are interested in furthering their education. Credit repair training and certification topics include: basic through advanced legal credit repair, rapid score boosting, removing difficult items, ID theft ($220 —5 weeks, 2 hours per session), bankruptcy (free to credit repair graduates — 5 week program), foreclosure ($220 —5 weeks, 2 hours per session), marketing using social media ($15) and small business boot camp business development (free). Whether you're helping clients, starting a business or a seasoned credit repair professional, this training is invaluable. We here for you. We are available for ongoing support while you are working with your clients. (Contract required). For more information on this program, call 718-722-9217, Ext 207.l
Avoid Credit Repair Scams... see page 3
Taking the Fear Out of Credit Repair
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BY BRIAN FIGEROUX, ESQ.
illions of Americans face financial hardship each and every day. It may be caused by periods of unemployment, house foreclosures, medical expenses, credit card debt or a plethora of other reasons. What gets lost in this struggle, is the importance of maintaining or correcting your credit report and score. Having bad credit can adversely affect you in a number of ways. It may prevent you from obtaining a loan or getting a new credit card. It may hinder you in opening a checking account or renting a home. Additionally, it may hurt you from getting a job offer. Furthermore, a bad credit
NACC Founder/Chairman/CEO, Brian Figeroux Esq. provides free legal consultations on issues of bankruptcy and foreclosure prevention
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Legally Increase Your Credit Score and Save Thousands of Dollars
Credit repair is 100% legal and it works because of the law. The Fair Credit Reporting Act gives you the right to dispute any item on your credit reports; 79% of all credit reports contain errors. This means that most credit reports can be improved instantly. With good credit, your mortgage, auto or loan payments can be cut in half! Let us help you keep your finances organized so you will never wind up with bad credit again.
Call 718-834-0190 for a FREE Credit Repair Consultation!
FREE PUBLICATION
Visit
www.quick-creditrepair.com
The Plan to Help Homeowners
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ongress is considering a plan that would help millions of responsible homeowners save hundreds of dollars each month by refinancing their mortgages.
Why refinance? Today, home interest rates are at historic lows—on average, below 4 percent. The average homeowner could save $3,000 a year by refinancing at today’s low rates, but far too many borrowers are locked out of a chance to do so. Complicated application processes and eligibility requirements, costly appraisals, and the fact that many homeowners owe more on their mortgage than the value of their home, make refinancing all but impossible for millions of Americans. How would the proposed plan help homeowners? The plan to expand access to refinancing continued on page 2
NAME MONEY OFMATTERS PAGE HERE
Engaged? Financial Questions to Ask Before You Say “I Do”
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ngagement season is officially here, with couples around the country saying "yes" to proposals and starting to plan their weddings. In fact, 39 percent of marriage proposals happen between Thanksgiving and Valentine's Day, according to WeddingChannel.com. While immediate discussions with your partner might be focused on the ceremony venue or honeymoon location, there's another important consideration before saying "I do" having the "finance talk." Joining your lives through marriage also means joining your lives financially. Having a solid understanding about money, which includes insurance, will help ensure a marriage remains strong long after the honeymoon is over. However, the reality is that many couples are skipping important conversations. While 71 percent of newly married couples acknowledge the importance of sharing beneficiary designations before marrying, almost half never got around to addressing their life insurance needs prior to the wedding, according to a survey by the National Association of Insurance Commissioners (NAIC). And it's not just young couples who are skipping the conversation — newlywed couples age 55 and older, are more likely to have discussed their household entertainment budget than their life insurance coverage. Talking about combining finances and future insurance needs can be difficult, but it doesn't have to be. Avoid misunderstandings and help ensure your marriage remains
Research shows disconnect between what couples say and do when it comes to financial conversations before marriage
strong by having a talk about these matters as soon as possible. Well before the big day, couples should schedule a pre-wedding discussion to directly address auto, home, health and life insurance needs. Here are some questions to get the conversation started:
Home * Do we plan on renovating our current home? * If we both own homes, should we rent or sell the other home once we move in together?
Keep in mind, that a renovation investment of $5,000 or more could change your home's replacement value and insurance needs. Additionally, switching a property from being a homestead to a rental will require you to carry different insurance.
Health * Which health plan should we keep? * Should we each be on the same plan, or maintain individual plans? * What is the best approach for insuring our children, or stepchildren? Having health insurance isn't only important for each person in a marriage, but start-
ing in 2014, it is subject to considerable changes in law. When analyzing plans, remember, the lowest premium isn't the only consideration. Review all plan elements, including deductibles and co-pays. Most couples have the opportunity to combine plans, but only after they are legally married and not before.
Auto * How's your driving history? * Do you have any accidents or violations?
Getting married may have a positive effect when you combine your auto insurance plan, but a lower rate is dependent on both you and your spouse's driving records. If you married a speed demon, it might not make sense to combine policies even after you say "I do." Have the talk and do your research. Life * Do you currently have life insurance? * How much life insurance is enough?
Now that "I" means "we," couples should ask these questions now to avoid problems in the future.l(BPT)
Family Law Practice Summarized
NEW YORK IS NOW A NO-FAULT DIVORCE STATE
nDIVORCE nSEPARATION nSUPPORT nCUSTODY The lawyer you hire does make a difference!
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Uncontested Divorces
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Has your spouse disappeared? We can find your spouse!
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The Plan to Help Homeowners
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is simple: it makes it easier for millions of responsible homeowners to refinance, even if they are underwater. The proposal would establish a quick and hassle-free process for homeowners who are current on their mortgage payments and want to refinance—no more tax forms, and no more appraisals—just a lower interest rate, and lower payments each month.
What about underwater homeowners? When the housing bubble burst, home values dropped, and millions of homeowners who did the right and responsible thing—shopped for a home, secured a mortgage, and made their payments on time each month—were left with houses worth less than they paid for them and mortgages worth more than their homes. Today, many of these homeowners are locked out of refinancing because they are underwater or because their credit took a hit. The proposal now being considered in Congress will help millions of these families. Whether your home has fallen in value or your credit was harmed, as long as you've been paying your bills on time in recent months and your loan is backed by Fannie Mae or Freddie Mac, you will finally be able to refinance. How does refinancing help the economy? Millions of homeowners who refinance could see hundreds of dollars in savings each month, but that money does more than just help individual families. Those homeowners will have more money to pay bills, more money to spend in shops and restaurants in their communities, or more money to save for college or new car. In turn, this spending—made possible by refinancing—will benefit our entire economy, and help spur the growth we need.
Where's my "refi"? President Obama’s refinancing proposal requires Congress to act, and until they do, millions of families will be prevented from refinancing and saving hundreds of dollars each month. Speak out if you support helping homeowners. You can use the hashtag #MyRefi to add your voice on mortgage refinance policy.l
VISIT OUR WEBSITE WWW.MYNACC.ORG FOR BUSINESS NEWS & EVENTS
CREDIT REPAIR
Avoid Credit Repair Scams
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Taking the Fear Out... continued from page 1
score will likely result in a higher interest rate, a decrease in your credit limit, and increase your car insurance. With credit reports playing such a major role in our lives, most people think they are infallible. Most people believe that a document of such importance must be accurate. However, to the shock and surprise of many, an astonishing 79% of all credit reports contain errors. Therefore, the vast majority of credit reports contain errors. It all starts with ordering a credit report from each of the three credit reporting bureaus of Equifax, Experian and TransUnion. Let us first distinguish between credit reports and credit scores. A credit report is a statement made by the credit reporting agency about a consumer which details their credit worthiness, credit standing, credit capacity, character, employment, and other factors. While a credit score is a number that represents a current evaluation of your credit history derived from your credit report, this score tells creditor whether you are likely to repay your accounts. Very likely, you have multiple credit scores as companies use their own evaluation models. A higher score will result in better rates of credit for you. Once you have your reports, you will be able to review it for any errors. At this point, it is critical to examine the reports for accounts that do not belong to you. Every year there is a multitude of people who are the victims of identity theft. These identity thieves generally begin by taking out small amounts of credit and if they are never discovered, they can remain unpaid and cause adverse effects on your credit report.
Once you are able to determine whether there are errors on your credit report the next step is to send dispute letters to the credit bureaus detailing these errors. The bureau may respond back to you by sending a new report that still contains the disputed item and stating that it is verified. However, you are still able to send a followup letter requesting proof of verification as the bureau is required to provide such verification. If there were errors and mistakes on your credit report that were fixed, then you are likely to see an increase in your credit score. Remember, maintaining good credit is an ongoing process and it is important that in the future you avoid the common pitfalls that lead people into bad credit.
Credit Repair Scams You see the ads in newspapers, on TV, and on the Internet. You hear them on the radio.You get flyers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims: Credit problems? No problem! We can erase your bad credit — 100% guaranteed. Create a new credit identity — legally.We can remove bankruptcies, judg-
ments, liens, and bad loans from your credit file forever! Do yourself a favor and save some money, too. Don’t believe these statements. They’re just not true. Only time, a conscientious effort, and a plan for repaying your debt will improve your credit report.
Protecting Yourself Here are some tips to keep in mind before you respond to ads that promise easy credit, regardless of your credit history: nMost legitimate lenders will not “guarantee” that you will get a loan or a credit card before you apply, especially if you have bad credit or a bankruptcy.
nIt is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. You also may have to pay a processing or application fee.
nNever give your credit card account number, bank account information, or Social Security number out over the telephone unless you are familiar with the company and know why the information is necessary.l
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ou've probably seen ads from companies promising a “new credit identity” — that is, a fresh start for your credit history. It may seem like just the thing you need to get your credit back on track, but it’s actually a scam. These companies often sell Social Security numbers illegally. If you use a number other than your own to apply for credit, not only won’t you get credit, but you also could face fines or prison. If your credit is less than golden, there are steps you can take to repair it on your own, at no cost. Only time and a personal debt repayment plan will improve your credit.
Signs of a Credit Repair Scam You’ll know you’re encountering credit repair fraud if a company: •insists you pay them before they do any work on your behalf •tells you not to contact the credit reporting companies directly •tells you to dispute information in your credit report — even if you know it's accurate •tells you to give false information on your applications for credit or a loan •doesn’t explain your legal rights when they tell you what they can do for you Report Credit Repair Fraud Contact your local consumer affairs office or your state Attorney General. You can also file a complaint with the Federal Trade Commission.l
VISIT OUR WEBSITE WWW.MYNACC.ORG FOR BUSINESS NEWS & EVENTS
ABOUT FINANCIAL US MATTERS
3 4
7 Steps...
time you apply for new credit, your credit report gets checked. New credit cards will not help your credit score and a credit account less than one year old may hurt your credit score. Use your cards and credit as little as possible until the next credit scoring.
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one, because sometimes scores actually go down when bad items fall off your report. It's a quirk in the FICO creditscoring software, and the potential effect of eliminating old negative items is difficult to predict in advance). Also, make sure you don't have duplicate collection notices listed. For example, if you have an account that has gone to collections, the original creditor may list the debt, as well as the collection agency. Any duplicates must be removed! Make sure that your proper credit lines are posted on your credit reports. Often, in an effort to make you less desirable to their competitors, some creditors will not post your proper credit line. Showing less available credit can negatively impact your credit score. If you see this happening on your credit report, you have a right to complain and should bring this to their attention. If you have bankruptcies that should be showing a zero balance…make sure they show a zero balance! Very often the creditor will not report a "bankruptcy chargeoff" as a zero balance until it's been disputed.
3. If you have any negative marks on your credit report, negotiate with the creditor/lender to remove it. *As your credit specialist, we will assist you with this step. If you are a long time customer and it's something simple like a one-time late payment, a creditor will often wipe it
away to keep you as a loyal customer. Sometimes they will do this if you call and ask. However, if you have a serious negative mark (such as a long overdue bill that has gone to collections), always negotiate a payment in exchange for removal of the negative item. Always make sure you have this agreement with them in writing. Do not pay off a bill that has gone to collections unless the creditor agrees in writing that they will remove the derogatory item from your credit report. This is important; when speaking with the creditor or collection agency about a debt that has gone to collections, do not admit that the debt is yours. Admission of debt can restart the statute of limitations, and may enable the creditor to sue you. You are also less likely to be able to negotiate a letter of deletion if you admit that this debt is yours. Simply say, "I'm calling about account number ________" instead of "I'm calling about my past due debt." Again, as your credit specialist, we will help you with this step.
4. Pay all credit cards and any revolving credit down to below 30% of the available credit line. This step alone can make a huge impact on your score. The credit scoring system
wants to make sure you aren't overextended, but at the same time, they want to see that you do indeed use your credit. Thirty percents of the available credit line seems to be the magic "balance vs credit line" ratio to have. For example; if you have a credit card with a $10,000 credit line, make sure that you never use more than $3000 (even if you pay your account off in full each month). If your balances are higher than 30% of the available credit line, pay them down. Here is another thing you can try; ask your long time creditors if they will raise your credit line without checking your FICO score or your credit report. Tell them that you're shopping for a house and you can't afford to have any hits on your credit report. Many will not, but some will.
5. Do not close your old credit card accounts. Old established accounts show your history, and tell about your stability and paying habits. If you have old credit card accounts that you want to stop using, just cut up the cards or keep them in a drawer, but keep the accounts open. 6. Avoid applying for new credit. Do not apply for any new credit! Each
7. Have at least three revolving credit lines and one active (or paid) installment loan listed on your Credit Report. The scoring system wants to see that you maintain a variety of credit accounts. It also wants to see that you have three revolving credit lines. If you do not have three active credit cards, you might want to open some (but keep in mind that if you do, you will need to wait some time before rescoring). If you have poor credit and are not approved for a typical credit card, you might want to set up a "secured credit card" account. This means that you will have to make a deposit that is equal or more than your limit, which guarantees the bank that you will repay the loan. It's an excellent way to establish credit. Examples of an installment loan would be a car loan, or it could be for furniture or a major appliance. In addition to the above, having a mortgage listed will bring your score even higher. Throughout this process, always remember: It takes up to 30 days for any of these items to get reported and often longer to reflect on your credit history reports. It may feel like a slow process, but hang in there, because it DOES work.l
Creditors’ Harrassments! Lawsuits! Foreclosures!
Get the legal help you need NOW! Call 718-834-0190!
FREE BANKRUPTCY CONSULTATION Save Your: *Home *Business *Car
*Health *Peace of Mind/Health *Marriage/Relationship
Filing a Chapter 7, 11 or 13 bankruptcy may be your only choice!!!!
Documents Required: *List of debts *Your most recent tax returns *Correspondence from creditors *Lawsuit documents *Social Security and ID *List of assets
The Law Offices of Figeroux & Associates, 26 Court Street, Suite 701, Brooklyn, NY. Visit www.figeroux.com VISIT OUR WEBSITE WWW.MYNACC.ORG FOR BUSINESS NEWS & EVENTS