Lighthouse Credit Tv Spot

What Is A Credit Report?

In much the same way that a resume displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history. And like a resume, your credit report can influence whether you will receive what you are applying for. For example: home loans, car loans, credit card, bank loans, furniture loans, insurance, apartment leasing, and employment.

Ideally, your credit report is an accurate, up-to-date reflection of your credit history. However, since we don’t live in an ideal world, there are many reasons that your credit report could contain inaccuracies that might prevent you from receiving the credit you deserve. The average errors on credit reports are as high as 62%. The good news is you can take action to keep your report accurate, by contacting: Lighthouse Credit Solutions!

 

Q. How long does credit repair take?

  

 A. Our program usually takes 4-6 months for maximum results.

Q. What results can I reasonably expect?

  

 A. We cannot guarantee a credit score or a specific result from our program. On average, our clients enjoy a credit score increase of 60-190 points! Results may vary, depending on the deletion of inaccurate and outdate negative accounts.

Q. Is there something I can do to help the program work better?

      

A. Yes-credit repair involves a certain amount of teamwork! While you in credit repair, we ask that you refrain from applying for new credit, continue to pay your bills on time, and be sure to carefully follow the instructions in our agreement.

Q. I tried contacting the credit bureaus to dispute something myself. Why are they so difficult to contact and deal with?

   

A. They have to be difficult for consumers to deal with or else their data wouldn’t be as valuable-so they wouldn’t be able to sell in the form of credit reports, marketing lists, etc. Let’s say that I call up one of the bureaus and am able to reach someone right away, who immediately updates my auto loan to reflect that a late payment was actually paid on-time just because I said that it was never paid late, the apologizes for the “mistake” and invites me to call back anytime if I need anything else. If correcting issues with credit was this easy, the bureaus consumer for handling disputed items, so it costs the credit bureaus a lot of money to reinvestigate information that is disputed.

Q. Should I pay a bill or will it just go away using your service?

   

A. If you owe money on a bill, we can’t make it so that you don’t owe the money. Paying of a bill helps in two ways. First, it takes the fight out of a creditor-they don’t care about you so much because you don’t owe them money-which increases our odds of getting it removed from your credit. Second-paying a creditor prevents them from taking further action against you, such as selling the debt to another creditor or taking you to court. We always recommend that you pay all of you bills if possible!

Q. I paid off a bill that still shows on my credit as having an open balance due.

   

A. Most people don’t realize that the credit bureaus charge a fee to creditors whenever they report something (such as when payment is made). Once you pay a creditor (especially collection amounts), they no longer care about you since you don’t owe them money any longer. We frequently help clients who have open accounts on their credit that they do not owe money one-usually it’s obvious because the creditor just stopped reporting once were paid.

Q. Why does my credit show duplicate accounts from the same item?

   

A. Often a company will try to collect on a debt for a certain period, and then give up. They cut their losses by selling the debt to the next collection company. Often, the previous company (sometimes multiple companies) will still appear on the person’s credit report because the company reporting (see the above question/answer).

Q. I paid off a creditor, and they reported my bill as having been pad. Shouldn’t it be completely removed from my credit report?

   

A. Usually not. Most credit is supposed to remain on your report for up to seven years (some things stay on for ten). However, if an account is reported incorrectly in ANY way it can be disputed and it may be removed because the credit bureaus are unable to verify them properly or within the thirty day guideline as allowed by law. To put it into very simple terms, the credit bureaus must fully prove that their information is correct or they must delete it. Our program employs powerful strategies and uses specific sections of the law to achieve results!

Q. Once deleted, can information re-appear on my credit?

   

A. It’s not supposed to, but that does happen occasionally. For deleted items that are less than a year old, there is a 10-20% chance that it may come back at some date. For deleted items that are 1-2 years old, there is a 0-10% chance, and for items are over 2 years old there is only a 2% chance. If an item does re-appear, we will dispute it again with the advantage of being able to show that it was previously deleted, because it is inaccurate or outdated.

Q. How do I get started in the program?

      

A. Give us a call we’ll discuss your situation and then arrange to meet with you or send you the paperwork to start. The process is simple, and many of our clients tell us that using our program was one of the smartest things they ever did. The sooner we start, the sooner we’ll be finished… so don’t delay.

What The Credit Bureaus Don’t Tell You!

• Each item on your credit report must be proven or it cannot remain in the report. If the credit bureau cannot verify the item when investigated, it must be removed from your file.

• Many negative entries on your report can be denied or challenged at any time if they are incorrect. The bureau must reinvestigate and if that item cannot be verified within a “reasonable amount of time, it must be removed from the file.

• Items when challenged can be mistakenly erased. Consumers say they often experience compute mistakes.

• Many items the creditor does not re-verify in time or the credit bureau is busy and does not handle your dispute properly. It must then be deleted. The older an item, the more difficult re-verification is. It is possible it cannot be verified because records may no longer exits after 1 or 2 years.

Credit Law? 

   Questions about credit law? What is the Fair Credit Reporting Act? How can the credit specialist at Lighthouse be of particular help in repairing your credit report? Below you’ll find quick answers too many of the popular questions in this area.

Is credit repair legal?

  Absolutely! It is your legal right to dispute items on your credit report. Lighthouse exercises your legal tights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable Federal statutes. Lighthouse helps consumers with credit reports that contain information that is inaccurate, misleading, incomplete, or unverifiable.

   

   Be cautious of any company that claims it can improve or remove items on your credit reports that are 100% accurate and correct; they may be violating Federal Statutes. We recommend that you stay away from services that recommend that you attempt to obtain a new/alternate social security number, attempt to create a consumer credit profile under an EIN, or create “fake” credit profiles by intentionally reporting false data. These tactics can be illegal and/or unethical and, if caught, can result in significant personal liability.

Are stall letters legal for credit bureaus to send?

   Based on the laws that the Fair Reporting Act has set, it is legal for credit bureaus to send out letters to notify consumers of a response to a dispute or other information /9such as informing someone that the bureau is not going to investigate or reinvestigate an item).

   They also can stall the process by requesting personal information such as your identity for validation purposes. The credit bureaus write these vague and sometimes confusing letters, mostly with the intent of stalling consumers, hoping that the dispute will not be pursued.

   They also send these letters out hoping to scare consumers away. If they state legal terms or ask for a lot of documentations they hope you will feel defeated and not pursue the issue any further. This is commonplace and happens to the majority of consumers who send disputes to the credit bureaus; however, persistence will eventually warrant a response. At Lighthouse, we know how the bureaus operate and we are tenacious in our efforts to accomplish the results you are seeking and remove the inaccurate information from your credit report.

What is the Fair Credit Reporting Act?

   The Fair Reporting Act is the law in place to protect consumers and regulate the consumer reporting agencies (CRAs). Commonly known as the FCRA, I was put in place to provide guidelines for the Credit Bureaus to make sure there is consistency between them, to make sure that accurate information is being reported, and to protect consumers from inaccurate information. It is also in place to ensure that credit bureaus and resellers of consumer reports provide information to creditors, insures, employers, and others, do so with due regard for the confidentiality, accuracy, and legitimate use of such data.

   When those parties take adverse on the basis of information in a credit report, they must identify the CRA that provided the report so that the consumer can learn how to get a copy to verify or contest its accuracy and completeness. Creditors and others may not knowingly provide false information to CRAs, which are required to maintain reasonable procedures to ensure the maximum possible accuracy of their data.

   The FCRA also states that you are entitled to a free copy of your credit report if you’ve been denied
credit, insurance or employment and request the report within 60 days of notice, or if you can prove:

• You are unemployed and plan to look for a job within 60 days
• You are on welfare
• Your report is inaccurate because of fraud

What is the Fair Credit Billing Act?

   The Fair Credit Billing Act supplies if you are a creditor billing customers for goods or services. The Act requires creditors to acknowledge consumer billing complaints promptly in writing and to investigate billing errors. The Act prohibits creditors from taking actions that adversely affect the consumer’s credit standing until the investigation is completed, and affords other consumer protections during disputes. The Act also requires that creditors promptly post payments to the consumer’s account and either refund overpayments or credit them to the consumer’s account.

What is the Truth in Lending Act?

   The Truth in Lending Act is federal law which sets minimum standards for the information which a creditor must provide in an installment credit contract. The Truth in Lending Act requires creditors who deal with consumers to disclose information in writing about finance charges and related aspects of credit transactions, including finance charges expressed as an annual percentage rate. The amount being financed, the amount of the required minimum monthly payment, the total number of monthly payments, and APR must all be provided to the debtor prior to entering into the consumer credit contract. The Act also establishes certain requirements for the advertisement of credit terms. Overall, the goal is to enable you to make accurate comparisons of offers of credit.

What is the Fair Debt Collections Act?

   The federal Fair Debt Collection Practices Act or FDCPA prohibits certain debt collectors from engaging in abusive behavior. It covers debt collectors who work for collections agencies. It does not cover debt collectors that are employed by the original creditor (the business or person who first extended you credit or loaned you money). If a debt collector that works for a collection agency breaks the law, you can take steps to make sure it doesn’t happen again.

What is Bankruptcy?

   Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidations” or “reorganizations.”

   Chapter 7 bankruptcy is the liquidation variety – property is sold (liquidated) to pay off as much of your debt as possible, while leaving you with enough property to make a fresh start. Chapter 13 is the most common type of “reorganizations” bankruptcy for consumers—you repay your debts over three to five years.

   Both kinds of bankruptcy have numerous rules – and exceptions to those rules – about what kinds of debts are covered, who can file, and what property you can and cannot keep. Bankruptcies, of any kind, stay on your credit report for 10 years. All decisions regarding bankruptcy should be considered very carefully and not take lightly.

What is Chapter 7 Bankruptcy?

   Liquidation bankruptcy is called 7, and it can be filed by individuals (a “consumer” Chapter 7 bankruptcy) or businesses (a “business” Chapter 7 bankruptcy). A Chapter 7 bankruptcy typically last three to six months.

   In a liquidation bankruptcy, some of your property may be sold to pay down your debt. In return, most or all of your unsecured debts will be erased. You get to keep any property is classified as “exempt” under the state or federal laws available to you (such as your clothes, car, and household furnishings). If you don’t own much, chances are that all of your property is exempt and you have what is known as a “no asset” case.

   If you owe money on a secured debt (for example, a car loan, where the car is pledged as a guarantee of payment), you have a choice of allowing the creditor to repossess the property; continuing your payments on the property under the contract (if the lender agrees); or paying the creditor a lump sum amount equal to the current replacement value of the property. Some types of secured debts can be eliminated in Chapter 7 bankruptcy.

   Not everyone can file for Chapter 7 bankruptcy. For example, if you disposable income is sufficient, after subtracting certain allowed expenses and monthly payments for certain debts (including child support and debts that secure property), to fund a Chapter 13 repayment plane, you won’t be allowed to file Chapter 7.

   Bankruptcy doesn’t work on some kind of debts. Though bankruptcy can eliminate many kinds of debts, such as credit card debt, medical bills, and unsecured loans, there are many types of debts, including child support and spousal support obligations and most tax debts that cannot be wiped out in bankruptcy.

What is Chapter 13 Bankruptcy?

   Chapter 13 bankruptcy is also known as “wage earner” bankruptcy because in order to file for Chapter 13, you must have a reliable source of income that you can use to repay some portion of your debt. And to qualify for Chapter 13 your secured debts must be less than $922,975 and your unsecured debts less than $307, 675.

   When you file for Chapter 13 bankruptcy you propose a repayment plan details how you are going to pay back your debts over the next three to five years. The minimum amount you’ll have to repay depends on how much you earn, how you owe, and how much your unsecured creditors would have received if you’d filed for Chapter 7.

   If you have secured debts, Chapter 13 gives you an option to make up missed payments to avoid repossession or foreclosure. You can include these past due payments amounts in your repayment plan and make them up over time.

What is a Judgment?

   A judgment is a court decision of money owed to a creditor or lender. When you don’t pay a creditor back they can take legal action against you. One form of that is bringing suit against you for the money owed. They will take you to court to try and get the money back. If they win then the court sets judgment of what is owed and that judgment will report on your credit report for up to 7 years.

   Now you can also get a judgment from a Civil Suit. If someone sues you for damages or money owed and wins they can get a civil judgment against to get their money as well. This will also report on your credit reports for up to 7 years.

What is Garnishment?

   A garnishment is a legal proceeding where a creditor can obtain a judgment on a debt to collect the payment in installments or in full by seizing the debtor’s assets (a bank account, their paycheck, etc.). The most common form of garnishment is: child support, Federal taxes, state taxes, unpaid judgments, student loans, court fines, and even credit card debt. If you do not pay your Federal Taxes or your Child Support they will submit the documentation to the court and get a court order and sent it straight to your payroll office. Next thing you know your next paycheck is missing $200.

What is a Lien?

   A Lien is a “claim” or hold on a property to secure repayment of a debt or satisfaction of a debt. Liens can be consensual or not. Some liens are consensual because of a contract between the debtor and the creditor. Examples of consensual liens are: Mortgages, Car Loans, and Secured Credit Cards. An example of a Non Consensual lien is a tax lien. If you do not pay your Federal Taxes, the IRS will put a lien on your property. This ensures the government that when you sell your home they will get paid first.