It is always a shock to the system. When you first discover that you have been a victim of identity theft, you feel violated. It is as if someone has been living in your house, and you didn’t even know it. Then you get angry. Someone has stolen my hard-earned money! But it is difficult to “get even.” Chances are you’ll never find out who the ID thief was. The best you can do is clean up the mess, and take steps to protect yourself in the future. This is your life after identity theft.

The first signs that you’ve been a victim of identity theft might be unexpected credit card charges, denials of credit for no apparent reason, or monthly bills that don’t arrive as expected. It’s time to take action immediately to stop the thief.

Place a “fraud alert” on your credit reports. This tells your creditors you suspect something is wrong, and they will follow set procedures before opening any new accounts in your name. You’ll also get a free copy of your credit reports so you can review them carefully for any other signs of criminal activity.

Close accounts that have been violated or established without your knowledge. Contact the security or fraud department of each company where an account was opened, and be sure to follow up in writing providing evidence of the theft.

File a police report. This will help you with any creditors who may want proof of the crime. You can also report the theft to the Federal Trade Commission – this probably won’t help you directly, but will help them monitor the overall scope of ID theft in the country.

To make sure that you’re not a victim again, start safeguarding your personal financial information immediately. This should include shredding documents with your personal information on them before throwing them in the garbage or recycle can. Don’t give out personal information over the phone or the Internet unless you know whom you are dealing with.

Tighten up the security of your online passwords and PINs. Don’t use obvious passwords like your mother’s maiden name, your birth date, or part of your social security number.

Keep your personal information in a secure place in your home. Lock away your passport, credit cards you don’t normally use, and financial records. This is especially true if you have roommates, hire outside help, or are having work done in your home.

Finally, continue to monitor your credit report, looking for any signs of illegal activity. You can get a free copy of your credit report once a year from the three major credit bureaus at annualcreditreport.com. If you space out your requests (ask for a report from one of the bureaus every four months, for example), you can monitor your credit more thoroughly.

Is there life after identity theft? Obviously, yes! It’s just not the same, though. You’ll always be more suspicious when the phone rings or when you check your e-mails. And maybe that’s a good thing.

Article courtesy of Credit Secrets Bible.

Your goal is to raise your credit score so you can enjoy lower interest loans, lower insurance premiums, a more affordable mortgage, and all the other benefits of good credit. You have already gotten copies of your credit report, and identified the negative items that are bringing down your credit rating. You have submitted forms to the credit reporting bureaus, disputing the negative information that they have been distributing in your credit report. And now, you have just gotten back rejections of your credit disputes. What should you do next? That is the focus of this article.

Don’t be surprised that it isn’t easy to erase the bad news from your credit report. It seems that they make it hard, on purpose. But with a little perseverance, you can be successful.

First, check the dispute letters that you had originally submitted. Were you concise and accurate in stating your case? The credit bureaus and lenders get a ton of dispute letters every week. In order to make sure your letter is actually read and understood, keep it short and to the point. Do not include details that will only confuse the situation.

Don’t try to impress or scare them by quoting the law. You may be tempted to include legal wording in your dispute letters, particularly if you feel that they have violated the law. But a personal letter will be much more effective. Maybe an exceptional circumstance, like an illness or divorce, forced you to default on your debt – tell them that.

Did you include documentation with your letter? Always include anything that backs up your case. Do you have cancelled checks or bank statements that prove you made a disputed payment? Of course, never send the originals – make copies of all your documentation.

If your dispute letter was rejected by the credit bureau, be sure to correspond with the lender or organization that reported the negative item to the bureau. If you’ve ever contested a charge on your charge card, you know how they play this game. You ask the credit card company to delete a charge you think is wrong. The credit card company says they will suspend the charge while they investigate. They check with the merchant who recorded the charge, and – surprise! – the merchant says the charge was valid, and the credit card company re-instates it on your bill. Thanks for nothing. Well, you’ll probably get a similar run-around when you contest items on your credit report. Try a different angles in your follow-up letter. You should try dealing with a different department in the lender organization to see if they are more sympathetic to your cause.

Persistence will pay off. If you deal with the credit bureaus and financial institutions in a professional, but firm way, you are more likely to be successful in your dispute. Remember, that although your dispute is with an organization, a person will be reading your letters. If you connect with them in a personal way, they are more likely to understand your position.

Article courtesy of Credit Secrets Bible.

No matter if you agree with the concept or not, the fact is that if an item appears on your credit or charge card statement, the merchant and credit card company view the items on that bill as “their money” from the moment it’s billed. They have the motivation to react defensively to any attempts to get that money back from them, unless there is a solid logical reason to do so. Further, because of the world we live in today, most merchant and credit companies face a daily assault from scammers and tricksters making them even more defensive and experienced than you. That solid logical reason they need to remove a charge may be your only chance at success in getting disputed charges removed.

Step 1: Organize all your data. Make three copies of the credit card statement that has the disputed item(s) listed. One copy will be sent to the credit card company (never send the original), and the other two are for your disputes file and for corresponding with the merchant during the follow-up phase. Do the same with any documentation that applies to the item in question, like sales receipts, returned items receipts, proof of identity not that of billed, copy of identity fraud alert if it applies, etc.

Step 2: Organize your dispute argument. In an orderly and logical manner, outline why you feel the charge is in error. For example, the item was never ordered or received, the billing information is from another individual not you, the item was returned for legitimate credit or charge back not reflected, etc. Be clear and be sure your argument is legit. Your chances are increased the more accurate and concise you are, and you risk legal troubles if you are fraudulent in your claim of dispute. Many legitimate merchants and charge companies share valuable information about what is a legitimate dispute in their terms and conditions pages, so be sure to check these out as well.

Step 3: Identify exactly as possible (through a phone call if needed) who exactly will be your target of this letter. This may give some insight to influence or leverage in your favor, and insight how to tone or craft your argument or dispute. For instance, is the person or department receiving dozens of these mailings per day, or is this a merchant charge account where the proprietor or credit manger can handle each letter individually as a matter of good business practice.

Step 4: Using the data in Step 2 and Step 3 above as a guide, create a rough draft of your initial dispute letter. Spell checking and grammar are second considerations here, since they will be handled in the final draft.

Step 5: After taking a break from the process for a day or night or two, look at all three above in sequence and think about how you could improve your strategy, argument points, or final draft argument tone and style. Remember, this is an initial contact that does not call for quoting the laws, name calling, personal attacks or threats of action, or anything of the sort. Cool headed, correctly crafted and displayed logic should lead the recipient to no other decision than to agree with your argument. If you’re not there yet, you need to go back to Step 1 to start over till you get it right. This is your best chance for success, if not your only chance.

Step 6: Using the final draft from Step 5 and the copies from Step 2, package your letter and supporting documents together, and send them to the appropriate address, with some form of tracking like certified return receipt. It’s always a good idea to match this step to the level of the charge amount and your target as well. Remember, you are negotiating and presenting at this stage, not picking a fight or a legal battle. There may or may not be a need for legal stuff later. For now you are documenting and tracking each step and little more, but certainly not less.

An example letter follows below, but if you want and your situation warrants it, you can get complete packages and copies of sample legal letters here,

More than 11,000 Legal Forms

Or if you wish, you can get a full course with sample documents and insider tips and instruction at Credit Secrets Bible.

Sample Letter to Credit Card Company:

[your name]

[your address]

[date]

RE: [acct number] statement of [date] number[if it has one]

Atten: [Accounts Manager or whomever applies here]

On the [statement date] mentioned above (please see attached copy), I noticed the following item[s] which I believe to have been billed in error:

item [number and/or date] from [merchant or other] in the amount of $XXX.XX.

This [or these] items should be billed at [what should be the amount], for the following reason(s):

A: Item was returned for full refund on [date], to [where] as noted on the attached receipt copy.

B: I can document fraudulent activity on my account per the attached affidavit.

[or whatever legitimate reason(s) you have]

Please adjust my current statement to reflect the correct amount of $XXX.XX with a new total due of $XXX.XX, which I have enclosed. If you feel I am incorrect on this, please respond to my above address as quickly as possible, so that we may continue my account in good standing.

Sincerely,

[you]

Give it a shot. If your reasons are legit, the item(s) may be adjusted. But don’t try to refuse to pay the rest of your bill until resolved. You may even find yourself in a situation where a reversal is not possible, or that you may have to pay and recover later to preserve your account standing. And, the above steps may not work. Now you can think about your possible legal standing and remedies.

When you have bad credit or a low credit score, the faster you can fix the problem, the faster you’ll have more money in your pocket. The interest rates you pay on loans will start falling, and you might even find the premiums you pay on life, health, and auto insurance will drop. So, what’s the fastest way to repair your credit problems? There isn’t a single solution, but many small steps you can take. Here are a few:

Secret #1: The piggyback method. If you are a married woman with some or no credit, and your husband has excellent credit, read on. You can leverage his credit with the piggyback method. It lets you build credit in your own name, and at a much faster pace than if you had to build it all by yourself. Have your husband add you as an “authorized user” or “secondary account holder” to his account. In most cases, his entire account history gets posted to your credit report. The piggyback method is easy, effective, and extremely fast.

Secret #2: Remove (some) negative items from your credit report. Let’s say you request copies of your credit reports, and discover five bad accounts you can get removed. Don’t remove them all immediately, because then you’ll end up with no credit history. The secret is to replace them with good accounts first.

The fastest way to add a good account to your credit report is through sub-prime merchandise cards. These are nothing more than a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). You’re required to put down a deposit on whatever you purchase, and the remaining balance is financed on the card. The advantage of the sub-prime merchandise card is that this new credit line will be reported to the major credit bureaus, and your credit report will reflect this good news fast.

Secret #3: Do not pay off your credit cards in full each month. If you do, you’ll actually end up with less credit. Think about it. Lenders make their money by charging you interest. If you pay off your balance each month, they don’t earn any interest. Pay down your balances, but don’t pay them off. This is a fast way to demonstrate to potential new lenders that you are credit-worthy.

Secret #4: Automated dispute letters. The credit bureaus and debt collection companies all require written correspondence from you before they will act on any complaint you may have. If you’ve tried to write effective dispute letters from scratch, you know how time consuming it can be. Technology comes to your aid! You can now get entire CD’s filled with hard-hitting credit repair letters that you can customize for your credit repair battle. Now, creating highly effective letters is as fast as pressing a few keys. You simply enter your name, the creditors name, and other relevant information. Then hit print. It just doesn’t get any faster than that.

These are a just a few secrets for fixing your credit problems fast. The sooner you get started, the sooner your credit score improves, and your financial picture gets brighter.

Article courtesy of Credit Secrets Bible.

There are any number of credit repair companies, counselors, and “non-profit” agencies that are eager to help you fix your financial problems – for a price. Sometimes that price can be considerable. However, it is possible to repair your credit yourself, for free. Even the Federal Trade Commission (FTC) thinks so. The FTC goes so far as to say that everything a credit repair company can do to improve your credit rating, you can do for yourself. The key is knowledge.

In order to be successful in fixing your own credit problems you must have the knowledge of how the system works. Lenders and other financial institutions respond well to certain techniques. The credit repair companies have learned, through years of practice, which techniques work best to raise credit scores. Fortunately for you, the techniques are not top secret. It is possible to obtain a credit repair manual that provides effective tips and proven techniques that you can apply to your bad credit problems.

Improving your credit report is not as easy as sending a couple of form letters and waiting for your score to magically rise. The FTC says that time, a conscious effort, and a personal debt repayment plan will improve your credit score. There are no instant fixes – it may take a period of months, even a year or more, before you will be able to enjoy lower-interest-rate loans again. Your “conscious effort” should include a realistic plan to save money by cutting back on everyday expenses, and then applying that extra cash to paying down your debt. It won’t be easy or fun, but the effort will be worth it.

Negotiating with your lenders, and communicating with the major credit bureaus, will require a knowledge of what types of letters they respond to best. Some credit repair resources include customizable letters that help you hit the “hot buttons” of lenders. When you provide the specific information they need to act, in a concise and effective way, your efforts will be much more likely to succeed.

Another piece of knowledge that you will need is always free – a copy of your credit report. You have to know exactly what any new potential lender knows about your financial history. That information is available in the credit reports published by the three major credit bureaus. You are entitled to a free copy of your credit report from each of the bureaus once a year. Go to annualcreditreport.com to request your copy. This is a website established by the credit bureaus themselves; beware of other, similar sounding websites, that may charge you a fee for something you can get for free. Carefully read through your credit report, looking for any outdated or inaccurate information. It is your job to get that negative data removed from your report.

Armed with the knowledge of what is in your credit report, and the tips and techniques for improving your credit, you should be able to repair your credit yourself, for free. Depending on the severity of your problem, it could take time and sacrifices, but it will be worth it.

Article courtesy of Credit Secrets Bible.

The cost of having a poor credit rating is growing higher each and every day. It literally pays to improve your credit score. You’ll get better interest rates on loans, lower premiums on insurance, and maybe even a better job. But, is it possible to repair your credit for free In this article we will answer that question, but also ask some more questions for you to answer.

You see the ads for credit repair services everyday on TV and in newspapers. You may even get calls from telemarketers offering “instant credit repair – 100% guaranteed.” The Federal Trade Commission, the government agency responsible for looking out for consumers, says in plain English, “Do yourself a favor and save some money. Don’t believe these statements.” The Federal Trade Commission (FTC) goes so far as to say that everything a credit repair company can do to improve your credit rating, you can do for yourself, for free. Is that true? Maybe.

If you have the right information on how to work with your creditors, debt collection companies, and the credit reporting agencies, and you if have the time to spend, then you can make headway in repairing your credit. For free. The vital “if” in that statement is related to the “right information.”

Reputable credit restoration companies have extensive experience in dealing with creditors, the credit bureaus, and collection agencies. It’s all they do, every day. If you want to be as successful, you’ll need access to the information and proven techniques the reputable credit repair companies employ. Improving your credit report is not as easy as sending a couple of form letters and waiting for your score to magically rise. You’ll be waiting for a long, long time.

The FTC says that only time, a conscious effort, and a personal debt repayment plan will improve your credit report. Yes, but that is also too simplistic. There is an unpredictable aspect to credit repair. You’ll have to be prepared to respond in different ways to individual creditors and credit bureaus in order for your efforts to be successful.

How much of the credit restoration process you can do yourself, and for free, is based on your availability to the right information and techniques, and your skills and experience. How polished are your written and verbal communication skills How much legal experience do you have Can you get your point across on the phone, without letting your temper flare Let’s hope your math skills are adequate. All these factors will come into play if you decide to take on your creditors yourself.

In the end, it comes down to how much can you do yourself based on your current skills and experience, and how much would you benefit by hiring someone to handle the more technical aspects of repairing your credit.

So, the answer to the question, “Is free credit repair possible” is a definite “maybe.” Your first action should be to arm yourself with the vital information you’ll need. There are a variety of public sources of this information, including the Federal Trade Commission.

Article courtesy of Credit Secrets Bible .

If you will be getting a car loan or applying for a home mortgage anytime soon, it is critical that you know what is in your credit report. After all, the first thing your potential lenders will do after you apply for a loan is to check your credit report to see if you are “credit-worthy.” The better your credit history, the lower the interest rate you will be offered. In this article we will provide three, easy ways to get a free copy of your credit report.

First off, you actually have THREE credit reports, each published by one of the three major credit reporting bureaus, TransUnion, Equifax, and Experian. Your past and current lenders provide information about your credit history to each of these three bureaus. The bureaus package this information into your credit report, and generate a resulting credit score. The good news is that, by law, you are entitled to free copy of each of your credit reports each year.

There are three ways you can get your copy:

#1: Online. The three credit reporting bureaus jointly sponsor a website specifically for the purpose of providing copies of your credit report. Well, actually the real purpose is to sell you additional services. More about that in a minute. Go to AnnualCreditReport.com, and click on the Request Report button. You’ll have to provide a little personal information, but you’ll be rewarded with a copy of your credit report instantly. A note of caution: there are a lot of other websites with similar names that will try to sell you a copy of your report. AnnualCreditReport.com is the only “official site” sponsored by the credit bureaus. Yes, they will try to sell you credit monitoring services, your credit score, and a variety of other “services,” but you don’t have to buy them in order to get a free copy of your report.

#2: By phone. You can also call the credit reporting bureaus to request a copy of your report. The number is 877-322-8228. They will take you through a verification process over the phone. But don’t expect to see your report any time soon. In fact, they say they will “mail the report within 15 days. Allow 2-3 weeks for delivery.”

#3: By mail. The third way to request a copy of your credit report is by mailing a form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. They ask that you use a specific form available on their website (AnnualCreditReport.com), and once they get your form it will take a month or so before you get your report. Since you have to go to the website to get the form, you might as well request the reports online – it is certainly a lot faster.

Since you can get ONE free copy each year from each of the THREE credit bureaus, if you space out your requests (one request every four months), you can monitor your credit reports over the period of a year, all for free.

Article courtesy of Credit Secrets Bible .

Having a credit problem is serious business, and fixing that problem should be done in a business-like manner. Picking up the phone and yelling at the lender’s customer support representative is not going to help repair your credit; in fact, it may make it worse. However, writing a concise, professional letter may well do the job. A simple credit repair letter can help you in a variety of ways.

Reduce your debt by negotiating repayment plans with your lenders, in writing. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe. Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt. A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.

A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you. It is your right to not be called in the middle of the night or while you are at work. These companies sometimes “buy” your debt from the original lender, for a percent of the value. Get these annoying parasites out of your life by putting it in writing.

Stop identity theft with a fraud alert letter. If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an “initial fraud alert” on all three of your credit reports (TransUnion, EquiFax, and Experian). This can only be done if you feel your personal information has been compromised. The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.

Raise your credit score by removing inaccurate or negative information from your credit report. Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report. Perhaps you have paid off a loan that your report shows as outstanding. Always include any copies of proof you may have, such as cancelled checks showing timely payments. It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.

Be sure to make a copy of all credit repair letters and any attachments for your own files. It is all good evidence that you are working to establish a good line of communication with your creditors.

The impact of your credit repair letters will not be instantaneous. But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt. Keep in mind that you are repairing not only your credit, but also your good name and reputation. The pen is mightier than the sword.

Article courtesy of Credit Secrets Bible.

A successful credit dispute letter is a wonderful thing. It can delete negative items from your credit report and eventually raise your credit score. It can stop a collection company from harassing you. You will reap the rewards of lower interest rates and a more secure financial life. Why risk success by filing your disputes with the credit reporting bureaus and financial institutions over the Internet?

There are companies who offer automated credit dispute letters on their website, for a “small fee” of course. These “boilerplate” letters have a low rate of success. Can you imagine being at the receiving end of this endless stream of almost identical dispute letters? It almost verges on being a spam attack. How would you respond to thousands of machine-written letters? Not well, I suspect.

The key to a successful credit dispute letter is a custom written document that concisely and clearly states your case. It has to appeal to the person who will be reading it. Tell your story in human terms and cite specific facts, and you will be much more likely to win.

Know who you are writing to, and customize your letter accordingly. A letter written to a credit reporting bureau asking them to delete incorrect data from your credit report should be very different from a letter going out to a collection agency that is harassing you.

Documentation that backs up your claim is critical. Do you have cancelled checks or a bank statement that clearly shows payment of a disputed bill? Make a copy of your documentation (never send the original), and include it with your letter. Just how can you send documentation if you use one of those Internet-based dispute letter mills? You can’t!

You may be tempted to quote the law in your dispute letter, particularly if you think that the other party has violated the law with their actions. Resist that temptation. Reproducing the wording of a law or regulation in the text of your letter is NOT helpful. Remember, that although your dispute may be with the organization, it is a real, live PERSON who will be reading your letter. Appeal to their emotions. Maybe your financial problems were brought on by an illness or a divorce that caused a loss of income. Share that information with them in your letter.

Be sure to include your complete contact information in your letter. Provide your mailing address, email address, home phone number, and even your cell phone number if you want. And if your identity is in question, include copies of two forms of identification with your letter, such as a driver’s license or page from a passport.

Don’t trust an Internet-based spam mill to generate a stream of credit dispute letters for you. Your financial well-being is at stake. Spend the time to write correspondence that clearly addresses your problem. If you need help in crafting this type of letter, there are some good resources available to you in the form of manuals that provide samples of effective dispute letters. Just be sure to customize your dispute letter, and you will be successful.

Article courtesy of Credit Secrets Bible.