Extreme scrutiny should be the name your game when it comes to choosing a credit counseling company or specialist. Legitimate, quality credit counseling services provide much needed help to those who need it.  But, not being vigilant about identifying the right company could cost you dearly.

Before you seek out the help of a credit counseling company or specialist – make sure you ask questions – the right questions. The FTC recommends the following:

• Are you licensed. What services do you offer?
• Will you help me develop a plan for avoiding problems in the future?
•  What are your fees?
•  What if I can’t afford to pay your fees?
•  What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?
•  What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?
• How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?

What services do you offer?
Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Avoid organizations that push a debt management plan (DMP) as your only option before they spend a significant amount of time analyzing your financial situation. DMPs are not for everyone. You should sign up for a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.

If you were on a DMP with an organization that closed down, ask any credit counselor that you are considering what they can do to help you retain the benefits of your DMP.

Are you licensed to offer your services in my state?
Many states require that an organization register or obtain a license before offering credit counseling, debt management plans, and similar services. Do not hire an organization that has not fulfilled the requirements for your state.

Do you offer free information?
Avoid organizations that charge for information about the nature of their services.

Will I have a formal written agreement or contract with you?
Don’t commit to participate in a Debt Management  Plan over the telephone. Get all verbal promises in writing. Read all documents carefully before you sign them. If you are told you need to act immediately, consider finding another organization.

What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained?
Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.

Have other consumers been satisfied with the service that they received?
Once you’ve identified credit counseling organizations that suit your needs, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau. These organizations can tell you if consumers have filed complaints about them. The absence of complaints doesn’t guarantee legitimacy, but complaints from other consumers may alert you to problems.

What are your fees? Are there set-up and/or monthly fees?
Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote. If you’re concerned that you cannot afford to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your circumstances. If an organization won’t help you because you can’t afford to pay, look elsewhere for help.

How are your employees paid? Are the employees or the organization paid more if I sign up for certain services, pay a fee, or make a contribution to your organization?
Employees who are counseling you to purchase certain services may receive a commission if you choose to sign up for those services. Many credit counseling organizations receive additional compensation from creditors if you enroll in a DMP. If the organization will not disclose what compensation it receives from creditors, or how employees are compensated, go elsewhere for help.

What do you do to keep personal information about your clients (for example, name, address, phone number, and financial information) confidential and secure?
Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse.

Never has there been more need for legitimate credit counseling services - free of abuse. Treat all credit counseling companies with caution - whether they are for profit or non-profit.

For a list of approved counseling agencies visit http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

To learn more about my Self Help Credit Repair Management System and how you improve your credit score in 7 Steps visit: http://www.7stepsto720.com

This may sound somewhat insane - but if you have teenage children, you should give them access to your credit accounts.

This advice is designed to help your children develop the skills they need to enter a world that judges us all on three little digits - your credit score. Learning the lesson of credit responsible and proper credit management is vital to your teen developing healthy credit and financial habits.

It can help them successfully navigate around the potential dangers of :
1)  Credit card companies that heavily solicit college kids
2)  A misunderstood credit-scoring system and
3) Poor credit and over payments on cars, rent, college and more

Read more on how to  protect your teen from making credit mistakes that could devastate their future. Call us today at 877.72.SCORE (7267) for more information on my book, Your Teens Credit.

I Bet You Didn’t Know This About Credit! (Credit Fact #17, Page 22)

Some savvy consumers think that they will save money by transferring their credit card debt to the card with the lowest interest rate. You would probably be surprised to hear that TRANSFERRING BALANCES MIGHT COST YOU MORE MONEY THAN YOU SAVE.”

How does it cost you?

If you transfer all your debt to the one credit card with the lowest interest rate, you are increasing your utilization rate (the debt that you carry in proportion to the limit) on your credit card. This will cause your credit score to drop. A lower score translates into higher interest rate on future loans or credit cards - less money in your pockets.

For 37 more important credit facts — Download my free FREE Book “38 Facts I Bet You Didn’t Know About Credit at www.720GO.com.

About
I Bet you Didn’t Know About Credit is just one of the learning tools Phil has integrated into his 7 STEPS TO A 720® CREDIT SCORE Credit Management System.

Tired of seeing people with good intentions being consistently denied home loans, Philip created the 720® CREDIT SCORE Credit Management System specifically to increase Credit Literacy and help every American improve his or her credit score. He felt that it was intolerable that people, who did qualify for loans often paid ridiculously high interest rates. For example, a borrower with poor credit could pay over $200,000 on a $300,000 home loan over the space of 30 years.

His 7 STEPS TO A 720® CREDIT SCORE exposes the rules of the credit game, allowing countless Americans to increase their credit scores and save hundreds, sometimes thousands of dollars in interest payments every month - That means more money for a better lifestyle!

7 STEPS TO A 720® CREDIT SCORE promotes Credit Literacy, Credit-Improvement, Credit Excellence and Credit Management for a lifetime - no matter the economic times.

It’s based on patterns of change identified through studying tens of thousands of credit reports. Available to the public - it is also used by investment advisors, real estate agents, mortgage brokers, and accountants across the nation to help borrowers qualify for the best loans, and reduce interest payments - and save money.

For additional information, visit www.7StepsTo720.com. Or call 877.720.SCORE.

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.

Keep it open. Although it isn’t a buy now pay later card as a “regular” unsecured card – your secured credit card is a credit card (As with all credit cards, if you are delinquent in your payments, your credit score will suffer). Keeping your credit cards open helps your overall available credit to balance ratio. Plus, the older an account the more positively it affects your credit score. I discuss how age affects your credit score on page 56 of my book 7 Steps to a 720 Credit Score (Fourth Edition)Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.

For Self-Help Credit Coaching: www.7Stepsto720.com/products.asp

Many people are unaware that even the most minor variations in the names they report to credit issuers or lenders can damage their credit score. This is one of the primary credit maintenance measures discussed in Step 7 of my book 7 Steps to a 720 Credit Score.

I encourage readers to “Always apply for credit and pull your report using the same name. If your name is Robert Michael Jones Jr., and you have applied for credit cards under different variations of names, this could adversely affect your credit score. For example, you might decide to use:

Using a multiple versions of your name increases your risk of having your credit report information divided among the various names or even merged with another person’s information. For instance, if your are Robert Jones Jr , and your father is Robert Jones, the credit bureaus might combine your files if you do not use “Jr.” when applying for credit. Pick one name and stick to it when applying for credit - always.

If you got married and changed your last name – start applying for credit under the new name. It might affect your credit minimally. But, the affect is temporary.”

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”

You could be the recipient of part of the unprecedented class action settlement if you’ve used a credit card or had a loan or debt account within the past 21 years (January 1987 through May 28, 2008)

In a preliminary judgment approved by U.S. District Judge Robert Gettleman in Chicago last Wednesday, TransUnion – one of the 3 major credit reporting bureaus, must compensate as many as 160 million consumers for selling their private information. Qualified consumers will get their credit score (normally valued at $12) and 6-months of unlimited free access to their credit reports (normally valued at $60) – for free. In addition an undetermined cash settlement will be granted. Ken McEldowney executive director of ConsumerAction said, “TransUnion was getting deep into credit reports to get information to tailor lists that were valuable for other companies. This is by far the largest class action ever and the largest ever involving privacy violations. It sends a strong message to organizations that hold your private information.

Final approval for the settlement is predicted to occur in September. However, commencing June 16, you can go to www.listclassaction.com to file your claim.

ConsumerAction warns that you should NOT to respond to emails claiming to be from TransUnion. It could an attempt by scammers posing as the credit agency to steal your private information. TransUnion said it will only communicate through the ListClassAction.com website.

Consumers should seize this opportunity to check what’s being reported on their credit report and their credit score – the all important 3 digit number that determines your financial reputation.

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.

For Philip’s Self-Help Credit Coaching: www.7Stepsto720.com/products.asp

If you’ve ever opened your monthly credit card statement and found that you were erroneously – billed twice, not credited for a payment, charged for an item you never purchased or overcharged by your credit card company – You are not alone. For people with open-end credit, the Fair Credit Billing Act (FCBA) protects your rights as consumers.

Open-end credit accounts include credit cards, and revolving charge card accounts - such as department store accounts. The FCBA does NOT cover installment accounts (loans or extensions of credit you repay on a fixed scheduled; for example, loans made to finance a car, furniture, boat, etc.).

What types of disputes are covered?

According to the Federal Trade Commission (FTC), the FCBA settlement procedures apply only to disputes about “billing errors.” For example:

• unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• charges that list the wrong date or amount;
• charges for goods and services you didn’t accept or weren’t delivered as agreed;
• math errors;
• failure to post payments and other credits, such as returns;
• failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
• charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

An error on your statement may be tremendously frustrating and inconvenient. But, these errors can be corrected!

Under the law if you are disputing a charge, creditors cannot report your account as delinquent during the investigation. If you question an item on your statement you are responsible for notifying the creditor in writing within 60 days of receiving the bill. The creditor must acknowledge the notice within 30 days and may not do anything to damage your consumer credit rating while the item is in dispute. In addition the creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

It is very important that take action on your dispute immediately – Put your dispute in writing (a phone call, fax or email or won’t protect you). Then, mail it. To get you started here’s a simple sample letter recommended by the FTC.

Date
Your Name
Your Address
Your City, State, Zip Code
Your Account Number

Name of Creditor
Billing Inquiries
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute a billing error in the amount of $______on my account. The amount is inaccurate because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.

Enclosed are copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my position. Please investigate this matter and correct the billing error as soon as possible.

Sincerely,
Your name
Enclosures: (List what you are enclosing - include any documentation such as copies of receipts, to support your argument. Keep the originals for your records)

Also, very important - make sure you send it to the right address and department. Use the address for Billing Inquiries listed at the back of your credit bill.

To learn more about billing and other errors on your credit, how they affect your credit score and the different methods you can use to resolve them, check out chapters 3 and 5 of my book “7 Steps to a 720 Credit Score.

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”

“How does being married affect my credit score?” My clients are often surprised by my response to this question – Do not open joint credit accounts!

In this session we’ll pull excerpts from my book 7 Steps to a 720 Credit Score to explain why couples should keep their credit separate.

If you are married…
“Establish credit separately and encourage your spouse to do the same. This way you can leverage each others credit when necessary. For instance, if you need a new line of credit and have a high utilization rate on your card (a balance of over 30 per cent), you can transfer a portion of your balance to your spouse’s credit cards. You can then walk into the loan application with a low personal debt and higher-than-usual credit score.”

If you are going through a divorce…
“If you own a home or joint credit card accounts, you will need to protect your credit during and after a divorce. When the courts decide, who will retain ownership of your house; make sure your bank knows as well. Refinance your house in your name or in your spouses name, depending on which of you retains ownership of the home after a divorce. If your spouse retains ownership without refinancing, you credit will be damaged if s/he becomes delinquents payments. For the same reasons, you will need to cancel all joint credit card accounts. Call your credit card company and ask for the procedure to cancel an account.”

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available a www.720score.com or by calling 1-888-254-2702.

Check your credit report immediately - if you’re one of 10 million Sallie Mae borrowers!

On Tuesday, MSN Money reported that a blunder by the nations top student loan provider “briefly trashed the scores of thousands of oblivious borrowers.”

Scores nosedived after Sallie Mae mistakenly reported their borrowers’ graduated loans as arrangements for partial payments. Graduated loans benefit borrowers by - allowing them to initially start with lower (sometimes interest only) payments for the first few years of the loan with a gradual increase to full payments over time. An arrangement for partial payment typically signals the credit bureaus to code your account as delinquent - precisely what Equifax proceeded to do when Sallie Mae reported these loans to them. The loans were coded as delinquent, with past due balances and a recent history of missed payments – even though they were current.

Sallie Mae has since reported that it has rectified the problem; that only 10 per cent of all customers were affected by the error and these customers’ scores have been readjusted to previous levels.

To be safe, I would advise Sallie Mae borrowers to take a proactive approach and personally double check their credit reports to ensure that that this error has been removed – It is a high priority error. High priority errors can do significant damage to your credit score and need to be removed immediately.

After notification from his credit monitoring service, one affected borrower found that his credit score had dropped from 727 to 646 – the difference between qualifying for a loan with a low interest rate and a high one.

With a 720 and above credit score most lenders will automatically approve you for the best available loans with the lowest interest rate. Vice versa, a poor credit score can ruin your chances for buying, refinancing or renting a home or getting a better deal on your auto insurance premiums, car loan and credit cards, and it may even affect an employer choice in hiring you.

In Step 5 of my book 7 Steps to a 720 Credit Score, Fourth Edition (pages 76 -94), I discuss high priority errors such as – mistakes in payment history, incorrect credit limits, duplicate collection notices and collection notices that are not yours. Removing these types of mistakes can positively impact your score by 20, 50 or even 100 points.

My recommendations if you are a Sallie Mae borrower – is to do the following now:

1. Contact www.AnnualCreditReport.com for a free copy of your credit report (you are allowed one free report every year). Or purchase a copy at www.myFICO.com. Find your Sallie Mae account on the report. If it states that “Arrangements made with credit grantor to make partial payments,” contact Equifax now: www.Equifax.com.Dispute the error. Let them know that the account is being paid as agreed upon with Sallie Mae and – it is not delinquent.When dealing with the credit bureaus sometimes it’s sometimes helpful to have an already pre-formatted letter you can tailor to your specific needs – My “Mistakes in your payment History” template letter found in “Applying the 7Steps to a 720 Score Workbook” may help you find the words. Send this letter along with a copy of the portion of your credit report that has the Sallie Mae error listed and include any other supporting documents. Send this via certified mail, return receipt requested.

2. If this doesn’t work contact Sallie Mae directly at 1-888-2-SALLIE. They have promised to provide references and other related help to accommodate customers with concerns and questions.It is especially important if you’re having trouble with other lenders or companies that need a credit score to qualify you for programs or services offered – to call Sallie Mae right now for a reference!

Your credit is your financial reputation… Stay on top of it!

Philip Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”

Borrowers are belting the blues with higher credit minimums!

Wells Fargo recently tightened credit restrictions on its non-conforming loans – loans of more than 417K. Effective April 25, the financial services company now requires borrowers of non-conforming loans to have a minimum credit score of 700. Additionally, in March Fannie Mae and Freddie Mac, the government-chartered mortgage buyers increased interest rates for borrowers with credit scores below 700 – formerly higher rates were triggered by a 680 score.

To bring things into even more perspective – prior to the latter part of last year, 620 was the minimum demarcation line required to garner respectable mortgage rates and terms. This line has since then been elevated to 680. And, now it seems that – lenders petrified and frustrated by the ongoing sub-prime mortgage crisis are sifting through loan portfolios with a fine tooth comb. They’re cautious and guarded with even their most credit-eligible customers. This resurgence of stricter underwriting standards have left borrowers with fewer financing options as lenders now require higher credit scores for loan approvals.

How does this “borrowers barred” climate affect your credit worthiness? Clearly, it is even more crucial that you have an impeccable credit score. There is no real problem lending to people with great credit scores. The credit crunch mostly affects the lower end of acceptable credit. In my book “7 Steps to a 720 Credit Score” I encourage behavior alteration to rebuild, strengthen and protect your credit for a lifetime - no matter your credit level or current market conditions.

You can start the process by becoming proactive about your credit health. From ensuring that the information on your credit report is accurate, maintaining low credit card balances, reviewing your credit card and bank statements regularly, avoiding late payments to checking your credit history with all three bureaus frequently – Your own best advocate is you!

Pessimistic bankers, mortgage companies and other lenders faced with a bitter forecast are squeezing borrowers out of the American Dream.The writing on the wall couldn’t be clearer – “Think twice before you come to us for a loan!” To avoid trouble lenders are avoiding all risk. Fortunately, borrowers with a great credit score have less to worry about than those who don’t. And, even if you don’t have the credit score you need at this moment, there’s hope. By changing your credit mindset and cultivating the habits required to make the leap to a 720 plus credit score – you won’t have to worry about meeting your lenders’ minimum.