Many customers are not aware of Statue of Limitations on debt that they may own. Everyday

thousands of consumers pay off collection accounts, and charge-offs which they do not have

to pay off because of the Statue of Limitation has already expired for the open account. It

simple mean if you have not pay your charge-off for several of years , debt collection

company can’t collect money from you because time to collect money has expired but a lot of

consumers still paying charge-off or collection accounts because the accounts still appear

on their credit reports.

This information is a powerful weapon against original creditor and a collection agency

when it time to fight with them about your old debts. You should remember that the Statute

of Limitations begins to run from the day the debt or payment on an open-ended account was

due. Also this has nothing to do with how long a negative credit item can remain on your

credit report but mostly it appears for 7 years.
Many consumers also pay off these accounts when they are not on their credit reports

because they are scary that someone may find them and take what they own. Even though an

account was removed from their credit file, a collector watched their credit report for any

activity and when they find it, they call consumer for payment.  All of what consumer

should say to collector is “I have an absolute defense-the Statue of Limitation has

expired” simple mean that they can’t collect any money because statute of limitation has

expired.
The Statute of Limitations does not cause your debt to go away after it expires. If the

creditor files suit, the consumer has an absolute defense. The consumer must offer the new

evidence to avoid a judgment. The evidence will consist of papers the consumer files to

support his claim. If the creditor sues you, and you do not prove to the court that the

Statute of Limitations expired, you will have a lost lawsuit and a judgment against you.

There are many factors in credit score that determine your credit score such as credit payment, debt ratio and balance that you have on your credit card, but what is most important is find out with items is not reflecting your credit score so you may know exactly what to focus on.  For credit card company it doesn’t matter what is your age, if you are 22 years old student or 68 years old retirement guy, Race can’t be count as well nationality and religion because this is a discrimination issue if a credit card company say to you that they cannot give you credit card because you are from certain nation or you speak second language. Most important that people should know about credit score is that soft-inquires Is not hurting your credit rating, inquires made for account in monitoring purpose such as your current lender checking your report to offer you additional limit is not count, but if they check your credit score and put hard inquires on your credit score system then it will lower your fico score of 5 points, each credit inquires lower fico score on average of 5 point depend what is your credit score and credit history. Some inquires lower credit score as much as 10 points and in order to get this points back you need to wait 2 years for those inquires to be removed so it take time. How can I raise my credit score this is most question that people asking as you may know credit scoring models are complex and in reality not many people know what is formula of credit score because those formula is confidential so it cannot be disclose to public. You may build your formula base on the past experience but every formula in different. If one factor changes, your score may change but improvement generally depends on how that factor relates to other factors considered by the model. Nevertheless, scoring models generally evaluate the following types of information in your credit report. What I mean by that this is what you should be aware of when you want your score to be high. So what is the best step to raise my credit score the best way is to pay all of your bills on time? It doesn’t matter if this is your credit card or your loan or any other financial obligation. Lateness, collections, and bankruptcies have the greatest negative impact on your credit score, check your credit report on regular basis I will say once every 4 months and dispute inaccuracies as soon as you uncover them. You should watch your debt ration and keep your account balances below 30% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $300 so you will look good in front of creditor eyes. You should also avoid many inquires. A large number of inquires occurred over a short period of time may be interpreted as sign that you are opening numerous credit accounts due to financial difficulties and overextending yourself by taking on more debt than you can actually repay.
Exception:  If you shopping for a mortgage, all mortgage inquires close together within 14 days to each other are considered one inquires for your score and not lower your fico credit score
So what is the secret of raising your credit score fast and efficient there is no secret, you should dispute inaccurate information from your credit report , pay bill on time, not carry outstanding balance, and decrease your interest rates on your credit card and loans

 

How to improve your credit score

If you want to apply for new credit card, or you want to take mortgage refinancing your home or take home equity whatever is your plan all you need to take care at the beginning is your credit score because without improving your credit score you will be paying a lot of interest rates and high monthly payment.  You may be very busy lately and don’t have time to managing your credit report and your credit report has suffer and you wish to fix your credit report what should you do? Let your creditor suffer your credit score? NO you need to fix your credit score but how can I fix my credit score? First what you need to know is what is a credit score and how it work Generally speaking, a credit score measures the likelihood you have repay what you owe, and it is based on information in your credit report but remember not all creditor notify to all credit report agency about your account activity so Trasunion Credit score may be different what Equifax and Experian have. As you know the rewards to raising your score speak directly to your wallet because if you have low credit score you are paying a lot of money in interest rates.  If you have better credit score then creditor is willing to offer you better loans terms and interest rates. 
I would like to share  how you may fix your credit score and what is affecting your credit rating

Correct mistakes on your credit report. Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus Equifax, Trasuion and Experian and don’t be fool and check your fako score because is less expensive go ahead and check fico score because only fico will tell you true credit score.  You should check for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late, you should remove all inaccurate information from your credit report before it’s too late!

Pay your bills on time. This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan. That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

Reduce your credit card balances. A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25 percent of your credit card limit because if you have higher credit card limit then creditor is counting you as risk person and of course your fico score will be lower. The reason creditor is counting you as a risk person because you may default on payment at any time.
Don’t close your credit card- If you have 3 years of more credit history on your credit card so it is not good to close that credit card because you losing a credit history and if you lost your credit history then your credit score will also suffer in bad direction. 3 years of credit history is considered as good and is not affecting your credit score in any negative way. If you have late payment on your credit card then your should talk to your creditor to remove any late payment from your credit report as this will save you a lot of interest rates

Credit scoring is usually more reliable than subjective or judgemental methods. You may say

to creditors that you have never been late on your credit card, or loans or any financial

obligation and when creditor checking your credit report and see that you are late with

your obligation how you will respond to that question? Then you will not get loans because

you are less trustworthy in eyes of creditor that the reason you need to work on your

credit score in order to improve score and find out how everything works.  In previous

years many banks used judgmental methods base or criteria that was systematically tested

but in century 21, none of banks using judgmental methods to check your credit ability.

Many people think is that if they have checking account and saving account in banks for

long period of time that indicate that they have very good credit score but this is not

true! You need to have credit card, loans, and other financial obligation and pay on time

and every time in order to have good credit score. Many people don’t know what factors

affect credit scores and how those factors are calculated in repayment.  Various factors

determine your credit score, including the following outstanding balance if you have more

than 30% of outstanding balance on your credit card then you are considered as risky.

Length of credit history, if you have credit card for less than 3 years then you are

considered as risky because you don’t have a long period  of credit card payment history

and your fico score will be lower than in those folks who have credit card for more than 3

years. How you pay your bill reflect on your credit score. If you pay your bill on time and

every time then your credit score will be good 2 or more years of credit card payment

history is enough to determine your credit ability.  One more important factors that

determine your credit score and of course hurt your credit score very drastically is any

derogatory entries exist on your credit report things such as reposition, collection

accounts, and bankruptcies that stay on your credit score for 7 years.
Thos factors are considered in your credit scores
Delinquency, recent or severe derogatory public record bankruptcy, liens past due balances

30,60,90 days past due or any collection accounts
There are also things that affect your credit score such as
Account payment or credit history not long enough as I have mention previous credit card

should be open for at least 3 years to remove those mark from your credit report. Lack of

information on your account, if you have not used your credit card for previous 6 month

they there will be lock of information on your credit score, insufficient number of

satisfactory accounts, you should have at least 2 credit card and 1 loans so you will not

have this mark stay on your credit report, and of course this is the most used mark “date

of last credit too recent” it mean that you have so much outstanding balance on your

account. Many creditor also notify about too fee or not recent balances on revolving

account for example on your credit card, your credit card cannot be put away and only used

in case of emergency you should use your credit card regularly otherwise creditor will

notify to credit report agency that you are not paying your credit card on time!
So what are factors that can affect your credit score?
Factors such as higher amount owned on account, as I have mention previously if you have

debt of more than 30% outstanding balance then you are risky to creditor ( on your credit

card none on your mortgage)  High debt ratio let say you have 1 credit card and your credit

card limit is $1000 dollar you are using $500 dollar each month then your credit ration is

50% with is high your credit ratio should not be higher than 30% other 2 items that affect

your credit scores are too many new or existing accounts as I say 2 credit card and 1 loans

is enough to have good credit score if not even excellent credit score, and too many recent

credit checks and inquires also affect your credit score, if someone have check your credit

score recently it indicate that you are risk because you seeking new credit and taking more

financial responsibility and taking more debt

What is credit score?
Scoring is a key factor in determine if you can get credit, and at what cost. Lenders are

relying on credit scoring system from all 3 credit report agency trasunion, Equifax and

Experian to determine your credit worthiness. Remember that not all 3 credit report agency

will have the same credit score. What these scores measure is how likely you are to repay

your obligations and debts- (according to previous payment with your creditors). Credit

score determine if you will  get loans and credit, at what interest rates and what cost as

you know if you have higher credit score then you are likely receive any best interest

rates score of 750 fico score is count as excellent credit score. You credit report affects

more than your financial life. It could affect your education, career and even your

relationships. You credit report is used not only by lenders and creditors, but auto life

and home insurers, future employers and even some educational institutions. Most financial

institution when you apply for a credit card, open a checking or saving account or your

asking for a loan then they check your credit score and see if you qualify for good rate

and what interest rates they will charge you.  Credit score affect on many different items

such us
• From life insurance to homeowners and car insurance you need to remember than car

insurance have different fico score and well homeowners insurance have different fico score

but if you fico score is good then your should not have any problem with your  score
• It may tell a school if you are a good risk for some student assistance programs

such as financial aid, school cannot discriminate you against that you have bad credit

score and you are not qualify for a loans.
• Most employers check your credit worthiness to determine if you have get the job or

not but they cannot take avertable action against you because your credit score is low
How credit score is calculated and why some people have fico score of 700 where other

people have fico score of 400? It is depend on many different factors and payment history

and relationship with creditors. How score are calculated? Computer programs process a

consumer’s credit report and analyze those factors that have been found to predict

creditworthiness. The resulting score assesses the likelihood that a borrower will repay a

loan or credit card on time. The higher the score the greater the likelihood that you will

be approved for credit, possibility with better rate than if you had a low credit score.

What is a low credit score? Lot credit score is consider when you have score less than 650

because then creditor is not trusting you that you are willing to repay what you own to

them. If you default on payment on time then you are less trustworthy in their eyes.
How to interpret my score?
Credit scores generally range from the mid 300s to the mid 800 fico score depend on your

credit history and relationship with creditor, how many credit card you have and what is

your credit history. You should remember than different lenders use different guidelines

for what is acceptable score but on average credit score of over 700 is considered as good

credit score!
760 and up is consider as excellent credit score and you will receive the best interest

rates on every items you are apply for
700-759 is considered as good and you should receive most of best interest rates
650-700 is considered as fair credit score you should repair your credit score to receive a

good interest rates most banks accept those rating but not willing to give a loans only

secured credit card
If you have credit score of less than 650 you should start working on your credit score as

soon as possible and repair your credit score by applying for credit card. You will not be

eligible for better rates. You are deemed a higher risk. When you have less than 650 credit

score then creditors will need to regard other information in your application and you may

be limited by the types of credit available and you will need to have a lot of securities

Many people don’t know how to deal with collection agency, when collection agency is calling you and demanding money that you own to creditors, you don’t know what to do how to deal with them? You start panic and screaming do not call me and collection agency still calling your home phone and your cell phone and your business phone and asking you to pay what is owns to original creditor. What should you do how should you behave in those situation? Those question brought attention to thousands of people who are victim of collection agency and their practice. You may mercy to them and asking them please do not call and they still call , even more and more often so what is the weapon on them in order to get those phone calls away, and get your good reputation back? Simple you need to challenge credit report agency. First you should ask yourself a question, why original creditor is sending your account to collection agency? Because you have fall behind your payment and you have not pay few month to creditor. Creditors is selling your account ( junk account) or assign your account to 3rd party collection agency such as NCO Financial, FIA Card Services, or any other agency in order to collect money for what you may own to them. First what you should do is challenge them answer a phone calls when they calling to you a politely asking them what is their address so you may send them a correspondence , then send them  a Do NOT Call letter with I attach bellow and Debt Validation Letter with will Validate if those debt belong to you. Collection agency will have to deal with a legal counsel in order to get those document and provide you with those document according to Fair Debt Collection Practice Act, 15 USC 1692g Sec.809(b) you are claim a dispute and validation is require. Once a collection agency receive a dispute letter and “Cease” letter mean do not call they will not calling you any  longer  and start validate those debt. 

Sample Letter:
AmSher
Collection Services, Inc
600 Beacon Pkwy W Ste 300
Birmingham AL 35209-3120

November 12, 2008

Re: Account # 7845872
Dear Collection Representative,
This letter is being sent to you in response to a conversation we had on November 19, 2008. This is not a refusal to pay, but rather a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is not a request for verification or proof of my mailing address. This is a request for validation made pursuant to the above named Title and Section. I request that your office provide me with legitimate evidence that I have any legal obligation to pay you.
Please provide me with the following:

• What the money you claim I owe is for and place of purchase, time, date, and amount
• Provide me with copies of paperwork showing that I agreed to pay what you claim with is a original receipt with my signature
• Provide a verification or judgment if applicable
• Identify the original creditor, address, phone number and their register agent
• Prove the Statue of Limitation hasn’t expired on this account
• Show me that you are licensed to collect in my state
• Provide me with your license number and registered agent

I must also inform you that if any of your offices has reported invalidated information to any of the three major Credit Bureau’s (Equifax, Experian, Trans Union) this action may constitute fraud under Federal and State Laws. If any negative mark is found on any of my credit reports by your company I will have no choice but to seek legal action against your office for the following:
*Violation of the Fair Credit Reporting Act
*Violation of the Fair Debt Collection Practices Act
*Defamation of character
During this validation period, if you take action which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing of any information to a credit reporting repository which could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be documented, considered harassment, and I will have no choice but to seek a legal course of action against your office. All future communications with me must be done in writing and sent to the address noted in this letter by USPS.
Best regards,

( Articles submited by registered user)

Many people are asking me a question how to improve a credit score, there are many items that need to be done in order to get your credit score up and running for all purpose. We all know if we have a bad credit score we will pay more interest rates on all financial products such as interest rates on credit card, car loan, personal loan, home mortgage, or any other financial product. So let me go straight and tell you how to improve and repair your credit score right away in less than 30 days!
First what you have to do is to get some cash to pay down your credit card. Paying off your installment loans may help you get your credit up but not as much as if you pay your credit card first. Revolving account like credit card is 35% of your fico score, were installment account like a car loan is only 15% of your fico score so there is a much different. Your credit card debt should be lower than 30% of your outstanding revolving balance. For example let say you have limit on your Credit card $10,000 dollars so your debt should be less than $3,000 so your Debt to Limit ratio will be 30% with is acceptable by Banks and credit report agency. You should not use your whole credit line every month, even if you pay your balance in full because creditor may thing that you over standing yourself with debt and one time you may lost your job and don’t pay your credit card on time.
Check your credit reports and make sure that all information on your credit report is correct. If you see any inaccuracy on your credit report you should call each credit report agency Tran union, Experian and Equifax and dispute any inaccurate information that is on your credit report. You should check if your credit report correctly reporting your credit limits for your cards? If not, you can call your credit card issuer and ask them to update the list. You can also challenge the limits with the credit bureaus.
Don't use credit card issuers who don't report your credit limit. Usually this is a problem you only run into with secured credit cards, but were you aware that American Express cards, Capital One do not report credit limits on your credit report? In this case the bureaus typically use your highest balance as a proxy for your credit limit, the same goes with CITI Charge Dinner Club which is going to make you look like you are maxed out.
Ask a trusted friend or family member to add you to one of their old cards as an authorized user, maybe one that hasn't been used in awhile because the older your credit history, the better. This is calling piggy back and you will receiving your friend credit history so it will improve your credit score drastically. If you have any inaccurate information such as collection, charge off, bankruptcy on your credit report you should challenge report reporting agency to remove those from your credit report to improve your fico and fako credit score.