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“We can remove your ailing credit — 100% guaranteed.”
“We can erase bankruptcies, judgments, charge offs and bad loans from your credit report forever!”
“We are a non profit credit repair organization and can provide quick fix to your bad credit”

Do these advertisements sound familiar? Yes, these ads are a common sight nowadays as a significant industry of credit repair has grown at a steady pace. Such credit repair firms either promise to “erase bad credit”, or make sensational promises of providing the consumers a new, clean credit history.

I have often seen people asking “what are the different ways to fix a bad credit”. The answer to this question is pretty simple. The right way to fix credit is to dispute and remove false and inaccurate information that is included in your credit report. Here are some of the do it yourself steps to fix errors in your report –the best part about is it that you don’t have to pay a hefty fees to any credit repair firm for it.

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If we pay off our loan and credit cards in time, our score won’t be affected negatively – that’s how the common thinking goes but one needs to think beyond that.

Say for example, you have a credit card debt of $3000 and you have been late only once. However, you are able to pay off the credit cards after a year or so thinking that this will surely enhance your score. But instead of improving your credit, it can hurt your score.

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Credit cards can give you the shock of your life. Plastic money is what fulfills our life style isn’t it? However there are reasons which can prove it wrong. We have become dependent on the plastic but are they worth it?

Find out some points that disclose the negatives of the pocket size friend who you possess.

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Mr X, a young employee was delighted at the prospect of his new job and hastily agreed to take s second credit card within a few days of obtaining the first card, though from a different company. But what was so special about the new card? Well, it was “free” and the only doc required to get it was a photocopy of their first credit card. So, that was it, so simple and easy! Feeling proud of his first card, Mr X just photocopied both sides of the first card and sent it to the Direct sales agent.

In another incident, Mrs Y, a junior school teacher was attracted to the telebrands on TV and obtained an ATM-cum-debit card for the purpose of mail and telephonic orders. But she was shocked when after a few days, one of her orders was not getting accepted even after the numbers were punched as guided by the voice prompt. Now, as Mrs. Y had to avail an offer, she didn’t give up but contacted a tele-agent. She even gave her card number, validity date and last 3 digits on the signature panel of the card for quick processing of the order.

However, what surprised both Mr X and Mrs Y in the following month were the account statements of their cards. They found that their cards have been misused by others for online shopping transactions. Most users are require during online transactions is to enter their credit card number, card validity month/year and a code called the Card Verification Value (or Card Validation Code) available in the card itself.

Now, what’s this CVV?

It’s a 3 digit number code imprinted at the end of the signature panel on the reverse of the card (often a 4 digit code little above the end of the card number).

The CVV serves as the authorizing code for CNP (card not present) transactions. This implies that it is as important as the pin number when you wish to access your bank account. However, unlike the ATM Pin Number which cannot be seen by others, the CVV is rarely protected as it is printed on the card itself.

Your card is thus exposed to other people and hence your CVV too. The best way to avoid this is to memorize your CVV and then put a small opaque sticker on it. Otherwise, if you suspect that your card details are exposed, then there’s no way out except that you get a new card with a fresh CVV and then protect that card.

Technorati tags:credit card debit card protect card card verification value

Initially it was very difficult for me to understand the reason for all the credit denials. I consulted Dr. FCRA (Fair Credit Reporting Act) and found out what I could do legally to help myself out of the situation.

The minimum knowledge of the legal aspects do not cause any harm. I came to know that checking my credit file twice a year is the best way to keep my financial life in control and annually I am entitled to receive one free credit report from all the three credit bureaus.

I got my report and found incorrect information on my file. As per Dr. FCRA’s words I asked them for all the information (name, address, phone number) of the companies that tampered with my file and they furnished me with all. Then I wrote dispute letters to the CRA on the accounts and some personal information which were incorrect. Believe me within thirty days (which is by law) they investigated and the incorrect information were gone from my file.

Now my file is clean and happily I will give the HR my consent letter to see the report. They need it to check my credit file. Oh I forgot this is my first job.

As it had been long, I just took out my credit report from TransUnion yesterday. I saw some prescreened offers. I immediately called up my doctor and he asked me to call them up. As the toll-free numbers were given beside the offer statements I called them and removed myself from their list. I hope they won’t bother anymore.

I am satisfied with my rights. I know I can sue them in the state court or the Federal court if they violate the FCRA. Will keep you posted for any new information that I get.

Technorati tags:FCRA, Fair Credit Reporting Act, CRA