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If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.
In a DMP, you deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees, but check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you. A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Ask the credit counselor to estimate how long it will take for you to complete the plan. You may have to agree not to apply for – or use – any additional credit while you're participating in the plan.
Debt Consolidation
You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral, so if you can't make the payments – or if your payments are late – you could lose your home.
Also, the costs of consolidation loans usually include added expenses on the ‘back end’ of the loan. In addition to interest on the loans, you may have to pay "points," with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.
Debt Negotiation Programs
Debt negotiation differs greatly from credit counseling and DMPs. It can be very risky, and have a long term negative impact on your credit report and, in turn, your ability to get credit. That's why many states have laws regulating debt negotiation companies and the services they offer. Contact your state Attorney General for more information.
The Claims   
Debt negotiation firms may claim they're nonprofit. They also may claim that they can arrange for your unsecured debt — typically credit card debt — to be paid off for anywhere from 10 to 50 percent of the balance owed. For example, if you owe $10,000 on a credit card, a debt negotiation firm may claim it can arrange for you to pay it off with a lesser amount, say $4,000.
The firms often pitch their services as an alternative to bankruptcy. They may claim that using their services will have little or no negative impact on your ability to get credit in the future, or that any negative information can be removed from your credit report when you complete their debt negotiation program. The firms usually tell you to stop making payments to your creditors, and instead, send payments to the debt negotiation company. The firm may promise to hold your funds in a special account and pay your creditors on your behalf.
The Truth 
Just because a debt negotiation company describes itself as a "nonprofit" organization, there's no guarantee that the services they offer are legitimate. There also is no guarantee that a creditor will accept partial payment of a legitimate debt. In fact, if you stop making payments on a credit card, late fees and interest usually are added to the debt each month. If you exceed your credit limit, additional fees and charges also can be added. This can cause your original debt to double or triple. What's more, most debt negotiation companies charge consumers substantial fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee of a percentage of the money you've supposedly saved.
While creditors have no obligation to agree to negotiate the amount a consumer owes, they have a legal obligation to provide accurate information to the credit reporting agencies, including your failure to make monthly payments. That can result in a negative entry on your credit report. And in certain situations, creditors may have the right to sue you to recover the money you owe. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Finally, the Internal Revenue Service may consider any amount of forgiven debt to be taxable income.
Damage Control
Turning to a business that offers help in solving debt problems may seem like a reasonable solution when your bills become unmanageable. But before you do business with any company, check it out with your state Attorney General, local consumer protection agency, and the Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you're considering doing business with. Ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is.
Some businesses that offer to help you with your debt problems may charge high fees and fail to follow through on the services they sell. Others may misrepresent the terms of a debt consolidation loan, failing to explain certain costs or mention that you're signing over your home as collateral. Businesses advertising voluntary debt reorganization plans may not explain that the plan is a Chapter 13 bankruptcy, tell you everything that's involved, or help you through what can be a long and complex legal process.
In addition, some companies guarantee you a loan if you pay a fee in advance. The fee may range from $100 to several hundred dollars. Resist the temptation to follow up on these advance-fee loan guarantees. They may be illegal. It is true that many legitimate creditors offer extensions of credit through telemarketing and require an application or appraisal fee in advance. But legitimate creditors never guarantee that the consumer will get the loan — or even represent that a loan is likely. Under the federal Telemarketing Sales Rule, a seller or tele-marketer who guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for or accept payment until you've received the loan.

Six out of ten Americans suffer from a "bad credit rating." Bad credit starts with imprudent choices, maxed-out credit cards, exhausted savings, overdue bills ... then a letter from a collection agency.

This is followed by more letters and phone calls every day. Now each time you submit an application for credit or even a job, you will be troubled and humiliated by the specter of late payments on your credit rating.

Credit grantors tend to view any kind of collection account, whether paid or not, as negative. These negative entries can stay on your report for seven years and in the case of bankruptcy, ten years.

Here are some scenarios that can put black marks on your credit:
• You go through a divorce and your spouse maxes out your joint credit cards
• An unpaid bill from your college years comes back to haunt you
• A creditor fraudulently places a black mark on your report
• A contractor you employed places a black mark on your credit report because you refused to pay him for incomplete or substandard work
• You were late with your credit card payment.

Things happen in life: layoffs, poor health, unplanned crises that can have consequences on your credit report.

Divorce and separation can also cause bad credit. This does not mean you have to give up on dreams that you may have, such as owning a home. If the bank turns down your mortgage application, many brokers and lenders may consider you an "A" buyer.
Several companies offer mortgage loans to people with less-than-perfect credit ratings, because homes are very secure collateral. The rates and fees might be outrageous, but even people in bankruptcy and foreclosures can apply.

Automotive credit also plays a part in re-establishing your good credit standing because an automobile is an asset that can be repossessed if things go wrong.

There are two ways you can have bad credit: one is where you can't buy anything on credit, and the other is where you have a bad credit report, but you may still be able to buy on credit. There are also varying degrees of bad credit. Much depends on what you are purchasing and who the creditor is.

If you've reached the end of your tether, filing bankruptcy instead of trying to pay your bills in dibs and drabs can also decrease your ability to purchase on credit.

On March 14, 2006 the nation’s three main credit bureaus sent out a press release announcing that they have adopted a new credit scoring system.  This new scoring system is not a whole lot different then the old FICO scoring system, but there are differences.  The FICO scoring system had a different algorithm to compute the credit score for each bureau.  The FICO scoring system also had a different range of scores for each bureau. 

This was what the credit bureaus were looking to standardize with the new VantageScore system.  The VantageScore uses the exact same algorithm to compute the score for all three credit bureaus.  Also, the score scale is exactly the same for all three bureaus. 

Here is a brief explanation of the VantageScore system.  The VantageScore system will be on a scale ranging from 501-990 (the lower the score the higher the risk to potential lenders).  The VantageScore also has adopted the classical academic scale to make it easier for consumers and lenders alike to understand where they rank with their score.  This academic scale is grouped by the following:

A- 901-990
B- 801-900
C- 701-800
D- 601-700
E- 501-600

The VantageScore just like the FICO score will be based off the information that is reported on the credit report.  It will reflect how often a consumer borrows money, how responsible borrowers are at paying back their debt on time, as well as other file content.  Unfortunately the credit bureaus did not divulge how these factors would be weighted in the new VantageScore.  The new VantageScore will also be more accurate when rating a consumer who has a limited credit history.  This is one area in which the FICO scoring system was not very accurate.

The FICO scoring system will not be done away with; in fact it will still be used by many borrowers to evaluate those who are looking to get a line of credit.    It will be up to the credit industry and the individual enders to decide which score they use.  In fact the rate of adoption of this new score will be set primarily by lenders themselves.  As new information is presented about the new VantageScore system, we will make sure to keep you updated.  If you have any questions regarding this or any other credit matter, please contact us at 1-866-639-3426 or you can email us at questions@ovationlaw.com. 

It's easy to think that bad credit is no problem from the advertisements in the media. However, have you ever examined the fine print on those "easy credit" ads? You'll discover that people with bad credit and bankruptcies are paying twice, three times, even four times the amount of interest that a person with good credit pays.

By getting the lowest possible interest rates, you save a substantial amount of money.
It is estimated that consumers with compromised credit pay billions in additional costs per annum. Credit grantors, fueled by credit reporting, advance strong competitive advertising campaigns for the most desirable borrowers.

Lower interest rates, reduced annual fees, toll-free customer service centers, customer recognition programs and purchase protection plans are some of the benefits of this rivalry.

Buying a home is the biggest single investment most people will ever make. Your credit history is one of the several important factors used in determining whether you can get a mortgage or not.

One of the details that lenders evaluate when you submit an application for a mortgage is your payment record on things such as credit cards, car loans, rent and related commitments.

If you intend to start a business, credit review and scoring is important as a means for your financers to evaluate your capability to handle the related risk and the possible losses resulting from charge backs and fraud. You will make the decisions for your business and have control of the credit card processing, and your good credit is an indication of your financial responsibility.

Blemishes on your credit record can have an effect on not only your ability to get a job, but also to lease an apartment or purchase a car.

Making numerous requests for credit, paying credit card bills late, and having a great deal of debt could lower your credit score.

Learn to keep track of how much you spend and on what. Try to find any area that's way out of line - it may be something as noticeable as eating out or as surprising as dry cleaning bills - where you can curtail spending and save some cash.

Make a budget - it is the first step to your financial freedom. Before you can devote yourself to increasing your money, you need to know where it goes.

In addition, you can be eligible for all kinds of 0% interest, low interest, cash back and rewards credit cards if you have a good credit record. You can in fact make money off the credit card companies with a first-rate credit rating.

The three major credit bureaus maintain credit files on nearly 90 percent of adults in the United States. An alarming number of these credit reports (79%) contain errors and could cause the denial of credit, insurance, or even employment.

To maintain your financial well-being, it is vital to monitor the status of your credit report and remove any inaccuracies.  Check your credit status by requesting a copy of your credit report every 4-12 months.

However, instead of ordering a report from each bureau at one time, save money by requesting your report from one of the three major credit bureaus every 3-4 months. Though your credit information will vary slightly from one bureau to the other, this should still provide you with a general assessment of your credit status.

Information on the Three Major Credit Bureaus:

Equifax - www.equifax.com
To order your report, call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 800-525-6285
And write: P.O. Box 740241, Atlanta, GA 30374-0241
Hearing impaired call 1-800-255-0056 and ask the operator to call the Auto Disclosure Line at 1-800-685-1111 to request a copy of your report.
Main Number: 404-885-8000

Experian (Formerly TRW) - www.experian.com
To order your report, call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013
To report fraud, call: 888-EXPERIAN (397-3742) and write:
P.O. Box 9530, Allen TX 75013
TDD: 1-800-972-0322

Trans Union - www.transunion.com
To order your report, call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022
To report fraud, call: 800-680-7289 and write:
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
TDD: 1-877-553-7803
1-800-916-8800
1-800-680-7289

Social Security Administration (Fraud line): 1-800-269-0271

Rights under the Telemarketing Sales Rule
To learn about your rights under the Telemarketing Sales Rule and how to protect yourself from fraudulent telephone sales practices, request a free copy of Straight Talk About Telemarketing. Contact: Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580; toll free, at 1-877-FTC-HELP (382-4357); TDD 1-866-653-4261.

The following organizations have additional information:
American Financial Services Association
Education Foundation
919 Eighteenth Street, NW
Washington, DC 20006
www.afsaef.org

National Association of Consumer Agency Administrators
1010 Vermont Avenue, NW, Suite 514
Washington, DC 20005

Navy Personnel Command
Personnel and Family Readiness (PERS-662C3)
5720 Integrity Drive, Building 768
Millington, TN 38055-6620

Clean your Report Today
Repairing your credit report is one of the most important financial decisions you can make. Ovation Law is a trusted law firm that makes the process convenient, personal, and effective. If you have any other questions or need for or credit report repair services, please contact us anytime:

  Phone: 1 (866) 639 - 3426
  Email: info@OvationLaw.com

Now that you have your credit report, just how do you make sense of it all and what exactly are the credit bureaus saying about you? The following information shows the ratings used in credit reports and will assist you in the process of understanding your overall credit rating and what credit report items you should consider disputing with the credit bureaus.

    R0 - Too new to rate. Approved but not used.
    R1 - Pays within 30 days of billing or as agreed.
    R3 - Pays in more than 30 days, but less than 60 or when next payment
           is due.
    R4 - Pays in more than 60 days, but less than 90 or when two payments
           are due.
    R5 - Account is at least 120 days past due but is not yet rated R9.
    R6 - No rating exists.
    R7 - Paid through a consolidation order, consumer proposal or
           credit counseling debtmanagement program.
    R8 - Repossession
    R9 - Bad debt, or placed for collection or bankruptcy

Each item on your credit report carries a corresponding ratings number that summarizes your account status.

  R –  Revolving Account
  I   –  Installment Loan
  I0 –  Installment Loan with no Payments Yet

Repairing your credit report is one of the most important financial decisions you can make. Ovation Law is a trusted law firm, and we make the process convenient, personal, and effective. Contact us today for more information:

Phone: 1 (866) 639 - 3426
Email: info@OvationLaw.com

The three major credit bureaus maintain credit files on nearly 90 percent of adults in the United States. An alarming number of these files (credit reports) contain serious errors and could cause the denial of credit, a loan, or a job.

Keeping a 'clean' credit report is vital to your financial well-being. Credit reports affect every aspect of our financial lives, including employment opportunities and the interest rates of personal loans such as home mortgages, car loans, and even the interest rates of credit cards. Your credit report is your 'financial fingerprint' and contains information that can be grouped into the categories listed below:

Payment History
Your payment history includes the following types of specific information:

• Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
• Presence of adverse public records (bankruptcy, judgments, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
• Severity of delinquency (how long past due)
• Amount past due on delinquent accounts or collection items
• Time since (frequency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
• Number of past due items on file
• Number of accounts paid as agreed

Amounts Owed

• Amount owing on accounts
• Amount owing on specific types of accounts
• Lack of a specific type of balance, in some cases
• Number of accounts with balances
• Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
• Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

• Time since accounts opened
• Time since accounts opened, by specific type of account
• Time since account activity

Types of Credit Used
Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

New Credit

• Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
• Number of recent credit inquiries
• Time since recent account opening(s), by type of account
• Time since credit inquiry(s)
• Re-establishment of positive credit history following past payment problems

Contact Us
Repairing your credit report is one of the most important financial decisions you can make. Ovation Law is a trusted law firm that makes the process convenient, personal, and effective. If you have any other questions or need credit report repair services, please contact us anytime:

Phone: 1 (866) 639 - 3426
Email: info@OvationLaw.com

Armed with an impressive resume and knowledge of the company you are interviewing for, you confidently approach the interviewer (in your finest 'power suit') and begin to craft the inspiring 'first impression' you envisioned last night as you went to bed.

You may feel prepared for the interview and qualified for that new job, but there is a strong possibility that the interviewer has already formed an opinion about you – through information contained in your credit report.

Increasing numbers of companies are requesting credit reports to assist them in the job hiring process. Essentially, your credit report is your financial resume and employers use it as an indicator of your personal integrity and how you conduct your life. With that in mind, it's alarming that seventy nine percent of all credit reports contain errors. A qualified job seeker simply can't afford to have credit report errors sabotage an excellent employment history.

In the competitive job market, an accurate credit history may be the decisive factor in gaining a job interview. Inaccurate credit reports can negate the most impressive of resumes, and you won't have a second chance to make a first impression.Just how important is your credit report when it comes to finding employment? According to William M. Greenblatt, chief executive of Sterling Testing Systems Inc., "Credit reports show not just your financial history but also your job history." (Sterling Testing Systems Inc., provides pre-employment screening and background checking for businesses worldwide, and has experienced growth in excess of 50 percent annually since 1997.) "And, actually," he continues, "most companies are more interested in your financial patterns than your employment background. They want to know if you pay your bills promptly. And this information gives them an idea of how the individual might be expected to behave, if hired."

The labor market is not only intense from the job seekers standpoint, but employers also are striving to gain a competitive advantage in the hiring process by accessing all the information available to improve the quality of its workforce. Employers are also more likely to check the credit history of prospective employees who will be involved in some aspects of the company's finances.

Use this trend of employer credit checking to your advantage by repairing and/or maintaining a clean credit history. Your credit report is your financial fingerprint, so check it frequently and keep it accurate so you are prepared to 'jump' on that dream job should the opportunity arise.

Contact Us
Repairing your credit report is one of the most important financial decisions you can make. Ovation Law is a trusted law firm that makes the process convenient, personal, and effective. If you have any other questions or need credit report repair services, please contact us anytime:

Phone: 1 (866) 639 - 3426
Email: info@OvationLaw.com