10 Credit Myth
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The document provides an overview of a credit education seminar presented by Mark Bustamonte, addressing ten common myths about credit, such as misconceptions regarding the legal authority of credit agencies and the effects of derogatory items on credit reports. It emphasizes the importance of the Fair Credit Reporting Act (FCRA) in protecting consumer rights and the inaccuracies often present in credit reports. Additionally, the document outlines the services offered by United Credit Education Services, including credit restoration processes and financial education products.
10 Credit Myth
- 1. WELCOME! Credit Education and Restoration Seminar Mark Bustamonte 954-707-2932 www.vrtmg.com/mbustamonte
- 2. Ten Greatest Myths About Your Credit
- 3. Myth #1. Credit Agencies are empowered with some kind of governmental authority .
- 4. Credit agencies have no legal authority at all, they are simply private companies who are in the business of selling credit information.
- 5. Myth #2. The credit agencies are required by law to keep derogatory items on your credit report for 7 to 10 years.
- 6. There is no law that the credit agencies report anything on you at all. Just the opposite is true! Credit Agencies are required by law to automatically remove all derogatory items older than 7 years or in the case of a bankruptcy, 10 years.
- 7. Myth #3. It is impossible to get a bankruptcy off .
- 8. Bankruptcies come off just like any other derogatory that is incorrectly reported, obsolete, erroneous, misleading, incomplete, or that cannot be verified. Remember, the nature of the item has nothing to do with its removal under the Fair Credit Reporting Act .
- 9. Myth # 4. The information on your credit report cannot be changed.
- 10. The opposite is true under the Fair Credit Reporting Act; both the federal and various state laws REQUIRE that items be removed if they are not 100% accurate or cannot be verified in a timely manner.
- 11. Myth #5. It is illegal or immoral to have the information on your credit report altered or removed .
- 12. Not only is it not illegal or immoral, but it is what the Fair Credit Reporting Act is all about. It was enacted by congress for the very purpose of protecting consumers from the intrusion of the credit agencies into our lives .
- 13. Myth #6. Paying a past due debt removes it from your credit report.
- 14. Just because you pay an old debt does not change or erase the fact that at one time you were not paying on it as you agreed. Can this record be changed? Absolutely!
- 15. Myth #7. Inquiries are not derogatory and will not affect your credit standing.
- 16. Anything that erodes your financial credibility is damaging to your credit standing. In the case of inquiries, one or two is not too bad, but any more than that and they begin to tell a story of their own. Any prospective credit grantor will look at your credit report and think that you are desperate for credit.
- 17. Myth #8. If you get a derogatory item removed, it will just come back.
- 18. Not if it is removed legally. When it is removed with cause under the Fair Credit reporting Act it cannot legally be placed back on your credit report. The same law that required its removal prohibits it from being placed back on.
- 19. Myth #9. The past equals the future.
- 20. This is the biggest myth of all. The concept that once bad, always bad, or at least for 7 years is totally false. Anybody can run into hard times or an emergency situation now and then, but that doesn't automatically mean that they are a poor credit risk for a magical 7 years. The simple truth is, no credit report can predict the future.
- 21. Myth # 10. I cannot restore my credit on my own.
- 22. Yes, you can! You can try to do it yourself (just like you can represent yourself as an attorney in a court of law). But you can also allow experienced professionals to educate you and assist you in restoring your credit profile.
- 23. First the Facts The fair Credit Reporting Act: 1971 Congress passed the Fair Credit Reporting Act (FCRA). The FCRA was passed by congress with the intention to regulate credit-reporting agencies. The Act spelled out all the rules and regulations that the credit-reporting agencies had to follow before they put anything on someone’s credit report. For the past three decades, those agencies have ignored most of the law. Information about “you” has to be accurate and verified before it is entered on your credit reports. If “reasonable procedures” have not been correctly followed, then any verified inaccuracies must be removed from your credit reports as defined in the FCRA. The three credit reporting agencies (CRA) ARE Experian (formerly TRW), Equifax and Transunion. There are various agencies that purchase information from these three major agencies, but they get their information from the “Big-3”, so if you can repair your credit with the Big-3, you basically repair it with everyone.
- 24. More Facts What is the definition of “inaccurate, erroneous, or obsolete?” Inaccurate information is any information that cannot be verified by the CRA and/or the creditor grantor. Erroneous information is any information that has been entered onto a consumer’s credit report due to human error (data entry error), Social Security Number mismatch error, mixed file error, similar name error. “reasonable procedures” were not followed when the information was entered on the credit report, or any such related error. This happens more often than you think! Obsolete information is any information that is beyond the industry standard of seven years; or ten years for bankruptcy.
- 25. What are Credit Scores? Credit scoring is a method that uses statistical models to evaluate your credit worthiness
- 26. Creditors use these scores, known as FICO scores in deciding whether or not to offer credit to consumers.
- 27. FICO scores range from 375 to 900 points.
- 28. Who are the Credit Reporting Agencies and how do they work? The Credit Reporting Agencies (CRA’s) collect and maintain information about consumer’s credit history. This information is obtained from banks, credit card companies and various financial institutions. They sell this information to lenders and other creditors.
- 29. The Three Major Credit Reporting Agencies There are three major credit reporting agencies. Experian Equifax Transunion
- 30. Other Names for Credit Scores BEACON—Equifax Fair Isaac—Experian Empirica—TransUnion
- 31. How Credit Affects You The interest rate you pay on credit cards and loans. Your ability to get a checking account. Rates on your auto insurance. Employment.
- 32. Are Credit Reports Accurate? Accuracy problems affect many consumer credit scores. Studies have revealed that millions of Americans have significant errors in their credit profiles. These errors affected credit scores by 50 points or more.
- 33. What is FICO? 35% 30% 15% 10% 10%
- 34. Example 1 35% 30% 15% 10% Buying a House… $150,000 Base Price Low Score 500-559 $1238.00 Payment 360 month @9.29% High Score 720-850 $873.00 Payment 360 month @5.73% SAVE $365.00 per month! SAVE $4,380.00 per year! SAVE $131,400 over 30 years!!!
- 35. Example 2 35% 30% 15% 10% Buying a Car… $25,000 Base Price Low Score 500-559 $2,500.00 Down $825.00 Payment 60 month loan High Score 720-850 $0.00 Down $416.16 Payment 60 month loan SAVE $400.00 per month! Plus car of choice for higher score
- 36. Who we Are WHO WE ARE: United Credit Education Services is a national credit restoration company and a Credit Union Services Organization (CUSO) based in Farmington Hills, MI.
- 37. We are a proud member of the Better Business Bureau and have been reporting with them for the past 3 years. We just recently received an A rating with the BBB.
- 38. We have a 9 to 5 customer service support center to assist our clients with all their credit needs.
- 39. We have a proven system for empowering and educating our clients about their rights as a consumer based on the law.
- 40. Our Mission Our mission is to revitalize the economy by educating the consumer about the travesty of bad credit and high interest rates. With the power of technology and our experienced team of professionals, we deliver the best service in the industry. High interest rates deny many people the ability to purchase things through credit. This prevents them from being able to buy homes, cars and other consumer goods and services. Our goal is to restore their purchasing potential so they can afford to buy a home, start a family, travel, invest or start a business. We help people improve their credit profile so they can stop putting their dollars into high interest rates and start using them to stimulate the economy. Let us help you make good credit and financial independence a reality, not just a dream!
- 41. How Does the Credit Restoration Process Work? Our process combines the latest technology with personalized attention that gets results.
- 42. Step by step process The customer signs the contract and attaches a copy of verification for their current address and social security number.
- 43. The enrollment process begins once the customer contract and address/SSN verification is received by the Processing Center.
- 44. The customer will receive a welcome call within 10 days to assure that they received their initial dispute package and to explain the dispute cycle process. Every 45 days thereafter the customer will be contacted and reminded to forward all documents received from the credit agencies to the processing center for inclusion in future updates.
- 45. Step by step continued 4. Within 7-10 business days the customer will receive their first dispute packet, which includes: Welcome Letter
- 46. Complete Explanation of Dispute Process
- 47. A Dispute Document to be reviewed, signed and forwarded to each Credit Reporting Agencies If the dispute letters require any changes the customer is encouraged to make them on the initial dispute document and forward them back to the processing center. In turn, the processing center will make the changes and forward new dispute letter to the customer for final review.
- 48. Once the customer is satisfied with their dispute letters, they will sign and mail them to the three credit reporting agencies as outlined in the customer welcome letter.
- 49. Credit repair progress report
- 50. Unbelievable Price All For The Low Price of $499.00 per individual Or $399.00 per couple See your agent about the split pay option
- 51. Other Products and Services Financial Education Services is proud to offer the " MyCare Plan™ “. The MyCare Plan is a product that helps plan for life's uncertainties. It includes a variety of planning tools and options to customize essential life and life after passing plans for yourself and your family. It includes a: Living Trust
- 52. Last Will
- 53. Financial Power of Attorney and
- 54. Health Care Power of Attorney $499.00 complete package
- 55. Other Products and Services UltraScore™, developed to help maximize your credit score in two important ways - by showing how to read and interpret a credit report and by showing how your credit score is calculated. By providing a detailed and comprehensive analysis of your credit report, UltraScore™ will enable you to: Understand the components of a credit score and how it’s calculated
- 56. Understand how to read and interpret your credit file, and understand the differences between mortgage, installment and credit accounts
- 57. Understand how certain bill paying habits may be adversely affecting your credit score
- 58. Receive a customized action plan to improve your credit and identify credit accounts that need immediate attention and why
- 59. Understand the impact of the amount of credit you are currently using $149 for one year service
- 60. Other Products and Services Auto Loan : The Road Loan Program, a Ford affiliate, allows people with credit problems to apply for a loan in the privacy of their own home. Removing consumers being subject to slow service and the embarrassment of discussing their credit issues with strangers when they go to an auto dealer. With us, the buyer simply completes a short application online and within 24 hours, they will know if they were approved. They will be notified both by phone and email as to the status of their application.
- 61. Other Products and Services NOW AVAILABLE! : Here is how it works:
- 62. Enroll into the Prepaid VR-Tech MasterCard.
- 63. Activate AccountNow Bill Pay and add the FREE AccountNow Credit Builder service.
- 64. Every time you make a bill payment with AccountNow Bill Pay, we will send your bill payment information to PRBC, a national credit reporting agency
- 65. Build a bill payment history to demonstrate your credit worthiness when applying for housing, credit, insurance, employment, phone, and utility hook-up by doing what you already to today - - paying your rent, electric, cable, insurance, and phone bills on time.
- 66. Only Bill Pay transactions will be shared with PRBC. Regular debit transactions using your AccountNow Prepaid MasterCard will not be reported to PRBC.
- 67. For more info contact: Mark Bustamonte 954-707-2932 www.vrtmg.com/mbustamonte