Garren Grup, REALTOR, CDPE, GRI… Naples & Bonita Springs, FL

Number 7 Myth of the Top Ten on Credit... and the Correct Answers!

I wanted to continue with the Seventh Myth in the Top Ten series on credit that I have been blogging about to inform both customers and my colleagues about, to help dispel some of the myths about credit. Improving and making the best of your credit rating has become increasingly important with the tighter lending standards. Don't let these obstacles get in the way of a home purchase! Find out the onformation you should know before trying to repair or improve your credit report.

Myth # 7 - I can create a totally new credit file by getting a federal tax ID number or changing a few numbers on my social security number.

This fraudulent scheme has proven to be complex, difficult and illegal. Lying on a credit application is a criminal offense and with the linking of computer systems it is virtually impossible to get away with. It is in your best interest to hire adequate representation and face the music by confronting the credit bureaus armed with the rights congress has granted you through the consumer protection laws.

Myth # 6 - The credit bureaus are a branch of the government, infallible, or otherwise above reproach.

The credit bureaus are publicly traded companies in business to impress stockholders. They are not government agencies. In fact, they are one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes. A recent survey by an independent research group revealed that 70% of credit reports contained mistakes or errors. The prevalence of errors has lead to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.

Myth # 5 - The credit bureau allows me to submit a 100-word explanation as to my side of the story. Creditors will read my statement and take it into consideration.

No known creditors consider the information submitted in you're statement. This statement only verifies some of the negative items on your report. The 100-word explanation should be the first thing deleted from your credit file.

Myth # 4 - Disputing a credit report is easy. Any consumer can do it themselves???

Disputing a credit report is easy. Getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000 the 3 major credit bureaus paid a fine of $2.5 million dollars for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Short of sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration. Restoring your own credit is like repairing your own transmission or representing your self in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of your inexperience and realize that it will probably take you longer and you probably will be less effective then the correct professional.

Myth # 3 - There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.

There is no type of negative listing that has not been removed from a credit report - thousands of times.

Myth # 2 - If a negative item is successfully deleted from my credit report, it will just come right back on my report.

The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.

Myth # 1 - When I pay off a past-due account, such as a charge off or a collection account, it will show "paid" and no longer be negative.

It is difficult to fully restore your credit without paying your outstanding debts. However, paying off a debt can actually hurt your credit. Negative items on your credit report are allowed to stay on your credit report for a maximum of seven (7) years, except for bankruptcy that can stay for up to ten (10) years. This 7 or 10-year clock begins ticking at the date of last activity. Making a payment represents new activity and restarts the clock. When paying an outstanding debt, you will change the account status to paid collection, paid charge-off, satisfied judgment, or paid ‘was x days late". This is still considered very negative and appears as though you had to be strong-armed by the credit bureau to pay the account. It is almost always prudent to have a professional help so as to not further damage your credit by trying to do the right thing.

Clubhouse AnnouncementsWednesday, November 5th Be on the lookout for your Employee Recognition Wooden Nickels & Club Directory Books to be arriving in your mailbox soon! Due to lack of space during season, only members are permitted to sign up for Game Night. No guests please! Spring Run is pleased to offer you access to a FREE INTERNET SERVICE which will make your seasonal relocation easier and more enjoyable. Carpool For Tournaments Cold Snap Hits Course Hard Read our Departmental Mission Statements Now Available: November Newsletter, November Calendar, and October Board Minutes Note - Logging in is not necessary to view the Announcements Social Events Schedule 2008/09 Social Event Schedule Jukebox Music Trivia Night Thursday November 6th @ 5:00 PM 10 Yr. Anniversary/Welcome Back Party Saturday, November 8th @ 6:00 PM Employee/Member Golf Tournament - Morning and Afternoon Tee Times - Are you signed up? Monday November 10th SRWGA Spring Run Women's Golf Association Opening Day Tuesday November 11th 8:00 AM Shotgun And Luncheon Spring Run Texas Holdem Poker Tournament Monday, November 17th @ 5:00 PM Golf Clinics Want to learn more about golf or improve your swing. Sign up in the Golf Shop for one of our clinics. New GPS Units from Golf Buddy Why not give it a try? Stop by the Golf Shop beginning next week and take one out to demo!!! Tuesday, November 11th, 2008 Game Night Authentic Latin Buffet Thursday, November 13th, 2008 Prime Rib Buffet Tuesday, November 18th, 2008 Game Night Western Open Range Buffet Thursday, November 20th, 2008 Italian Roman Buffet Tuesday, November 25th, 2008 Game Night Pacific Polynesian Buffet Thursday, November 27th, 2008 Thanksgiving Buffet Brunch

Spring Run Golf Club . 9501 Spring Run Boulevard . Bonita Springs, Florida 34135 (239) 992-3811

Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!

10^th Anniversary / Resident Welcome Back Party

Spring Run Clubhouse

Saturday November 8^th 2008
6PM to 10PM

Spring Run at The Brooks offers a full family golf membership, 4 tennis courts, fitness center, clubhouse pool, dining in the Grill Room and more! An extensive Clubhouse expansion has just been completed. Residents also have the option of joining The Brooks Commons Club. The Commons Club offers various levels of membership that include a beach club on Bonita Beach, a state-of-the-art fitness facility and exceptional cuisine served at Rosie Spoonbills.

Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!

Number 6 Myth of the Top Ten on Credit... and the Correct Answers!

I wanted to continue with the number Six Myth in the Top Ten series on credit that I will be blogging about to inform both customers and my colleagues about, to help dispel some of the myths about credit. Improving and making the best of your credit rating has become increasingly important with the tighter lending standards. Don't let these obstacles get in the way of a home purchase!

Myth # 6 - The credit bureaus are a branch of the government, infallible, or otherwise above reproach.

The credit bureaus are publicly traded companies in business to impress stockholders. They are not government agencies. In fact, they are one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes. A recent survey by an independent research group revealed that 70% of credit reports contained mistakes or errors. The prevalence of errors has lead to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.

Myth # 5 - The credit bureau allows me to submit a 100-word explanation as to my side of the story. Creditors will read my statement and take it into consideration.

No known creditors consider the information submitted in you're statement. This statement only verifies some of the negative items on your report. The 100-word explanation should be the first thing deleted from your credit file.

Myth # 4 - Disputing a credit report is easy. Any consumer can do it themselves???

Disputing a credit report is easy. Getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000 the 3 major credit bureaus paid a fine of $2.5 million dollars for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Short of sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration. Restoring your own credit is like repairing your own transmission or representing your self in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of your inexperience and realize that it will probably take you longer and you probably will be less effective then the correct professional.

Myth # 3 - There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.

There is no type of negative listing that has not been removed from a credit report - thousands of times.

Myth # 2 - If a negative item is successfully deleted from my credit report, it will just come right back on my report.

The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.

Myth # 1 - When I pay off a past-due account, such as a charge off or a collection account, it will show "paid" and no longer be negative.

It is difficult to fully restore your credit without paying your outstanding debts. However, paying off a debt can actually hurt your credit. Negative items on your credit report are allowed to stay on your credit report for a maximum of seven (7) years, except for bankruptcy that can stay for up to ten (10) years. This 7 or 10-year clock begins ticking at the date of last activity. Making a payment represents new activity and restarts the clock. When paying an outstanding debt, you will change the account status to paid collection, paid charge-off, satisfied judgment, or paid ‘was x days late". This is still considered very negative and appears as though you had to be strong-armed by the credit bureau to pay the account. It is almost always prudent to have a professional help so as to not further damage your credit by trying to do the right thing.

I voted this morning, the lines were short and the process was smooth and quick.

You can make a difference in this historic Presidential race!

Voting Tip: Sort through the legislative babble and confusing wording on issues and ammendments on your local news website to make sure that your "Yes" & "No" votes really counts the way you want them to.

Most of all, show that you care about our country and it's future. Be a proud American, you live in the greatest country in the world!

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