What is the Credit Repair Organizations Act?

The Credit Repair Organizations Act is a federal law that became effective on April 1, 1997 in response to a number of consumers who had suffered from credit repair scams. In effect, the law ensures that credit repair service companies:

• Are prohibited from taking consumers’ money until they fully complete the services they promise.
• Are required to provide consumers with a written contract stating all the services to be provided as well as the terms and conditions of payment. Under the law, consumers have three days to withdraw from the contract.
• Are forbidden to ask or suggest that you mislead credit reporting companies about your credit accounts or alter your identity to change your credit history.
• Cannot knowingly make deceptive or false claims concerning the services they are capable of offering.
• Cannot ask you to sign anything that states that you are forfeiting your rights under the Credit Repair Organizations Act. Any waiver that you sign cannot be enforced.

1. Check Your Credit Report

   To get a better understanding of your credit picture and what lenders can see, check your credit report.
   • If you need help reading your report, you can learn more about how to read your Experian credit report.
   • If you want to learn more about credit reports in general, you can read about credit report basics.
   • If you find information that is incorrect, you can file a dispute. Remember too, that items on your credit report that you don’t recognize could also be potential signs of fraudulent activity — someone working to secure credit in your name for their own use. Make sure you’re clear on items that could potentially be fraudulent, versus those that may simply be inaccurate.

2. Improve Your Payment History

   Your payment history is one of the most important components of many FICO scoring models. Late and missed payments will reduce your scores, and public records and collections can cause significant damage. This negative information will remain on your credit report and impact your credit scores for 7-10 years.
   Your scores often take into account the size and recency of your debt. The bigger your debt is and the more recent your missed payments are, the worse your score will be. Bringing accounts current and continuing to pay on time will almost always have a positive impact on your credit scores.

3. Know Your Credit Utilization Rate

   Credit scoring models usually take into account how much you owe compared to how much credit you have available, called your credit utilization rate or your balance-to-limit ratio. Basically it’s the sum of all of your revolving debt (such as your credit card balances) divided by the total credit that is available to you (or the total of all your credit limits).

Small Business Health Care Tax Credit and the SHOP Marketplace

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If you are a small employer, there is a tax credit that can put money in your pocket. The small business health care tax credit benefits employers that: Have fewer than 25 full-time equivalent employees Pay average wages of less than $50,000 a year per full-time equivalent (indexed annually for inflation beginning in 2014) For tax years 2015 and 2016, the inflation-adjusted amount is $52,000 Pay at least half of employee health insurance premiums To be eligible for this credit, you must have purchased coverage through the small business health options program, also known as the SHOP marketplace. For information about insurance plans offered through the SHOP Marketplace, visit Healthcare.gov.

Small Business Health Care Tax Credit and the SHOP Marketplace

Can you claim the credit?

To be eligible, you must cover at least 50 percent of the cost of employee-only (not family or dependent) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees (FTEs). Those employees must have average wages of less than $50,000 (as adjusted for inflation beginning in 2014) per year. Remember, you will have to purchase insurance through the SHOP Marketplace (or qualify for an exception to this requirement) to be eligible for the credit for tax years 2014 and beyond. For information about State-based SHOPs participating in the direct enrollment process, such as the one adopted by federally-facilitated SHOP Marketplaces, see the Centers for Medicare & Medicaid Services (CMS) FAQs about flexibilities for State-based SHOP direct enrollment.

What IS an FTE? Basically, two half-time employees count as one FTE. That means 20 half-time employees are equivalent to 10 FTEs, which makes the number of FTEs 10, not 20.

If you pay total average annual wages of $200,000 and have 10 FTEs. To figure average annual wages you divide $200,000 by 10 — the number of FTEs — and the result is your average annual wage. The average annual wage would be $20,000.

The amount of the credit you receive works on a sliding scale. The smaller the business or charity, the bigger the credit. So if you have more than 10 FTEs or if the average wage is more than $25,000 (as adjusted for inflation beginning in 2014), the amount of the credit you receive will be less.

Is My Child a Qualifying Child for the Child Tax Credit?

This interview will help you determine if your child is a qualifying child for the Child Tax Credit.

There's an additional requirement for a taxpayer identification number (SSN or ITIN) to be valid for claiming the Child Tax Credit. The "Protecting Americans from Tax Hikes (PATH) Act of 2015" requires you and the qualifying person to have an SSN (or ITIN) assigned on or before the due date of the return or on or before the extended due date if an extension is timely filed. For new ITIN applications, the IRS will consider the ITIN as issued on or before the due date of a return if the IRS receives the Form W-7, Application for IRS Individual Taxpayer Identification Number, on or before the due date of the return and an ITIN is issued as a result of the application.

Information You'll Need:

• Your filing status
• Whether you can claim the child as a dependent
• The child's date of birth

The tool is designed for use by taxpayers that were U.S. citizens or resident aliens for the entire tax year for which they're inquiring about. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. For information regarding nonresidents or dual-status aliens, please see Publication 519, U.S. Tax Guide for Aliens.

Estimated Completion Time: 10 minutes.

Note: After 15 minutes of inactivity, you'll be forced to start over.

Is My Child a Qualifying Child for the Child Tax Credit?

This interview will help you determine if your child is a qualifying child for the Child Tax Credit.

There's an additional requirement for a taxpayer identification number (SSN or ITIN) to be valid for claiming the Child Tax Credit. The "Protecting Americans from Tax Hikes (PATH) Act of 2015" requires you and the qualifying person to have an SSN (or ITIN) assigned on or before the due date of the return or on or before the extended due date if an extension is timely filed. For new ITIN applications, the IRS will consider the ITIN as issued on or before the due date of a return if the IRS receives the Form W-7, Application for IRS Individual Taxpayer Identification Number, on or before the due date of the return and an ITIN is issued as a result of the application.

Information You'll Need:

• Your filing status
• Whether you can claim the child as a dependent
• The child's date of birth

The tool is designed for use by taxpayers that were U.S. citizens or resident aliens for the entire tax year for which they're inquiring about. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. For information regarding nonresidents or dual-status aliens, please see Publication 519, U.S. Tax Guide for Aliens.

Estimated Completion Time: 10 minutes.

Note: After 15 minutes of inactivity, you'll be forced to start over.

Five Ways to Offset Education Costs

IRS Tax Tip 2010-30

College can be very expensive. To help students and their parents, the IRS offers the following five ways to offset education costs.

1. The American Opportunity Credit This credit can help parents and students pay part of the cost of the first four years of college. The American Recovery and Reinvestment Act modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student. Generally, 40 percent of the credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes.

2. The Hope Credit The credit can help students and parents pay part of the cost of the first two years of college. This credit generally applies to 2008 and earlier tax years. However, for tax year 2009 a special expanded Hope Credit of up to $3,600 may be claimed for a student attending college in a Midwestern disaster area as long as you do not claim an American Opportunity Tax Credit for any other student in 2009.

3. The Lifetime Learning Credit This credit can help pay for undergraduate, graduate and professional degree courses – including courses to improve job skills – regardless of the number of years in the program.  Eligible taxpayers may qualify for up to $2,000 – $4,000 if a student in a Midwestern disaster area – per tax return.

4. Enhanced benefits for 529 college savings plans Certain computer technology purchases are now added to the list of college expenses that can be paid for by a qualified tuition program, commonly referred to as a 529 plan.  For 2009 and 2010, the law expands the definition of qualified higher education expenses to include expenses for computer technology and equipment or Internet access and related services.

5. Tuition and fees deduction Students and their parents may be able to deduct qualified college tuition and related expenses of up to $4,000. This deduction is an adjustment to income, which means the deduction will reduce the amount of your income subject to tax. The Tuition and Fees Deduction may be beneficial to you if you do not qualify for the American opportunity, Hope, or lifetime learning credits.

You cannot claim the American Opportunity and the Hope and Lifetime Learning Credits for the same student in the same year. You also cannot claim any of the credits if you claim a tuition and fees deduction for the same student in the same year. To qualify for an education credit, you must pay post-secondary tuition and certain related expenses for yourself, your spouse or your dependent. The credit may be claimed by the parent or the student, but not by both. Students who are claimed as a dependent cannot claim the credit.

For more information, see Publication 970, Tax Benefits for Education, which can be obtained online at IRS.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).

Small Business Health Care Tax Credit and the SHOP Marketplace

How do you claim the credit?

You must use Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For detailed information on filling out this form, see the Instructions for Form 8941.

If you are a small business, include the amount as part of the general business credit on your income tax return.

If you are a tax-exempt organization, include the amount on line 44f of the Form 990-T, Exempt Organization Business Income Tax Return. You must file the Form 990-T in order to claim the credit, even if you don't ordinarily do so.
 

Don’t forget... if you are a small business employer, you may be able to carry the credit back or forward. And if you are a tax-exempt employer, you may be eligible for a refundable credit.

TransUnion Partners with Carahsoft to Fortify Public Sector

TransUnion TRU recently collaborated with government IT solutions provider, Carahsoft Technology Corp., to enable delivery of its investigative and risk management tool, TLOxp, to the public sector. The company will also offer its identity authentication and verification solutions to NASA Solutions for Enterprise-Wide Procurement contracts.

Ranked among the top government contract holders, Carahsoft is a government aggregator for many of the top technology companies. It also works toward helping government agencies select and implement the best solutions at the best cost.

TransUnion will work in collaboration with Carahsoft to prevent cyber fraud with its integrated identity management tools that provide digital verification and ID authentication, along with its identification of digital behaviors indicative of cyber fraud. Carahsoft has a rich ecosystem of reseller partners, offering government agencies authoritative resources for both locating and researching connections to help prevent instances of cyber crime by identifying suspicious behavioral patterns.

The company’s investigative and risk management tool, TLOxp offers government agencies a 360-degree view of vendors, businesses and individuals by gathering information, and combining current and historical information. This enables agencies authenticate identities, detect fraud, reduce financial losses, and protect the interests of its citizens. This tool will be available in Carahsoft's GSA Schedule 70.

TransUnion has outperformed the Zacks categorized Business - Information Services industry, with a return of 3.9% as against a negative return of 1.5% for the latter, over the last one month. TransUnion is focused on organic growth to enhance its portfolio. These initiatives will help the company boost its top line, going forward.

Headquartered in Chicago, IL, TransUnion is a consumer information services firm that offers data and analytics solutions, particularly in credit risk management. The company is one of the three largest credit reporting agencies in the U.S.

What sets TransUnion apart is its distinctive and comprehensive datasets, next-generation technology and its analytics and decision-making capabilities that enable it to deliver insights across the complete consumer lifecycle. TransUnion boasts rich domain proficiency across a wide range of industry verticals, including insurance, healthcare and financial services. It also caters to verticals like wireless, real estate and general commercial/business information.

TransUnion currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include NV5 Global, Inc. NVEE, Gartner, Inc. IT and Verisk Analytics, Inc. VRSK, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NV5 Global has a long-term earnings growth expectation of 20%. It has beaten estimates thrice in the trailing four quarters for an average positive earnings surprise of 6.9%.

Gartner has long-term earnings growth expectation of 17.3%. It has beaten estimates in each of the trailing four quarters with an average positive earnings surprise of 14.5%.

Verisk has long-term earnings growth expectation of 11.6% and is currently trading at a forward P/E of 24.8x.

What is the Fair Credit Reporting Act and why was it created?

• The right to delete outdated information. Negative citations such as collections and bankruptcies can remain on your credit report for a maximum of 7 to 10 years. After this time period has passed, the credit bureaus must remove them from your report. Remember, though, that there is no minimum reporting period, so creditors or credit bureaus can remove information even earlier if they choose to do so.
• The right to decide who views your credit report. No one can view your credit report without your permission. The FCRA requires lenders, landlords, employers, and other interested parties to obtain consent before viewing your credit report.
• The right to opt out of unsolicited offers. If you're tired of receiving pre-approved credit applications and insurance coverage offers, you have legal recourse. Businesses that send these offers must include a toll-free number that allows you to remove your name from their solicitation list.
• The right to legal action. Your credit report is valuable, and the FCRA prevents outsiders from misusing it. For more information, contact a credit repair professional, or visit the Federal Trade Commission website:www.ftc.gov/credit.

Visit annualcreditreport.com for access to your free copies.

• Access to your credit score. Your credit score provides potential creditors with a numerical indication of how likely you are to repay borrowed money. Based upon information found within your credit report, this number helps lenders, insurance companies, and other businesses decide whether or not to do business with you. The credit bureaus are required to provide your credit score if you request it, however it may come with a small fee attached. With our service, you'll receive a free, updated credit score every 90 days.
• Notification when your credit information is used against you. If your application for insurance coverage, auto loan, mortgage, or other type of credit is denied, the lender must inform you of the decision. They must also provide the contact information of the credit bureau that gave them access to your report.
• The right to dispute information on your credit report. Incomplete or false information can drag your credit score down. In addition to viewing your credit report, the FCRA allows you to trigger an investigation with the credit bureaus if you spot an error. Once the information is verified as false or inaccurate, it must be deleted or corrected within 30 days. Keep in mind that our service demands that creditors and bureaus uphold two additional reporting standards pursuant to other applicable laws -fairness and substantiation - in addition to simple accuracy.
• The right to delete outdated information. Negative citations such as collections and bankruptcies can remain on your credit report for a maximum of 7 to 10 years. After this time period has passed, the credit bureaus must remove them from your report. Remember, though, that there is no minimum reporting period, so creditors or credit bureaus can remove information even earlier if they choose to do so.

Federal consumer rights under the FCRA include:

• Access to your credit report. You have the right to know what is in your credit file. The FCRA requires Experian, TransUnion, and Equifax to provide you with a free copy of each report once per year. You are also entitled to receive a free copy of your report if:
  
  
  • A potential lender views it
  • You are the victim of identity theft and/or want to place a fraud alert in your credit file
  • You request public assistance
  • You are unemployed and plan to apply for a new job within 60 days
  Visit annualcreditreport.com for access to your free copies.

What is the Fair Credit Reporting Act and why was it created?

The Fair Credit Reporting Act (FCRA) was written in 1970 as an amendment to the Consumer Credit Protection Act. The FCRA provides additional measures of consumer protection in the areas of fairness, accuracy, and privacy of the information collected by the credit bureaus. It also allows you to personally engage in credit repair and maintenance processes, verifying that the information in your credit report is correct.

Federal consumer rights under the FCRA include:

• Access to your credit report. You have the right to know what is in your credit file. The FCRA requires Experian, TransUnion, and Equifax to provide you with a free copy of each report once per year. You are also entitled to receive a free copy of your report if:
  
  
  • A potential lender views it
  • You are the victim of identity theft and/or want to place a fraud alert in your credit file
  • You request public assistance
  • You are unemployed and plan to apply for a new job within 60 days

What NOT to tell your child when it comes to money

You’ve talked to your kid about sex and drugs but what about money? Parents often wait too long to tackle topics like work, debt and taxes, according to Beth Kobliner, author of “Make Your Kid a Money Genius (Even If You’re Not),” coming out today.  But there are also some things you should not tell your kids when it comes to your own finances.

#1 Don’t be specific about how much you make

Your kids do not need to see your W-2. It might feel good to brag about your six-figure salary or set them straight about making minimum wage, but young kids can’t process it. No doubt, they will ask how much (probably, at a really inopportune time), but Kobliner says to keep it to yourself. Instead, she recommends talking about the median income. “You can either say, ‘We’re very comfortably ahead of that, but we really still think it’s important to save for the future, or you could say, ‘You know what, we don’t quite make that so we’re really trying to be careful about money.’”

#2 Don’t tell your child who makes more

If both you and your spouse work full-time, there’s no reason a kid should know that one parent makes more than another. Kobliner writes that “putting dollar figures on what Mom and Dad earn can send the message, especially to young children, that one parent’s contribution is more important.” If one of you takes care of the kids full-time, Kobliner says it’s a good idea to discuss the value of stay-at-home parenting.

#3 Don’t share how much you pay the sitter

Keep how much you pay the babysitter/nanny/tutor to yourself. It’s fine to tell kids that babysitting is a job, but Kobliner says sharing your sitter’s hourly wage could “give your children an informational upper hand” and possibly strip the person whose job it is to be the boss of their authority.

#4 Don’t share how much is in your 401(k)

Don’t tell a 10-year old how much is in your 401(k) or other retirement accounts. Explain to them what a 401(k) is used for, and talk about the miracle of compounding, but they don’t need the grand total. Kobliner says, “Your kid doesn’t have the perspective to understand that this isn’t money you should tap now.”

#5 Don’t talk about how rich or poor your relatives are

Your cousin may be a deadbeat who still owes you a wedding gift or your uncle might be a hedge fund billionaire, either way watch what you say around your kids about their financial status. Kids don’t forget and may expect more or less from a person depending on what they’ve heard from you. As Kobliner points out, “If you’re looking to teach a lesson about the hazards of lending to family members or friends, go with a story that’s not about people they know.”

Let's take a walk in the employer's shoes to understand.

An average corporation that screens potential employees shells out more than $1,000 before the applicant punches the clock the first time. Depending on the position, it can take as long as a year of productive service from the employee before this money is recouped. Just like every business, they want a return on the investment.

What is the harm in a credit report? Look at the history. Those with a disparate amount of debt to the potential income of the job will be in financial straits. This makes the employee more susceptible to opportunities to supplement their income. Do you see a red flag yet? Look more closely.

Employees with more than one job are more likely to be absent and tardy given their scheduling. This lost time represents lost productivity for the employer and insufficient return on their investment.  Wage garnishment and creditor calls at work are other ways that bad credit can have an impact on an employee's productivity.

Potential employees may only have no criminal history because prior employers chose not to prosecute. People who are in debt or poor, even with a job, are more likely to steal than those that are comfortably living within their means. Even theft of company supplies represents a loss to the employer.

What about those with poor payment histories? That does not affect their professional skills, but it does testify to their ability to complete assignments. Debts are resultant of contracts where a service or product is provided with the promise of later payment. Potential employees who default on promises have a higher probability to fail to meet deadlines and expectations.

What about inquiries? If a potential employee has had multiple inquiries into their credit within six months of their application, the reasons for the inquiries are another red flag to a human resource director.

When applicants have attempted to obtain additional credit, many times it is indicative of a failure to steward their finances properly. This is more negatively punctuated when the credit is refused.

Applicants with many potential employer inquiries are a different risk. This person either does not stay on the job very long or they have been such poor candidates that they have not been chosen for other positions. Both instances are a warning to potential employers.

As an employer, would you trust someone who cannot manage their own finances to be in a position of responsibility that could negatively impact your finances

Know Your Rights

If you’re concerned about your credit history affecting your job prospects, here’s what you should know.

An employer needs your permission to run a credit check. The Fair Credit Reporting Act (FRCA) requires your written permission any time an employer hires a third party to conduct a background check. That includes running a credit report. Of course, you likely won’t get the job or promotion if you don’t agree. But failing to get your okay is an FCRA violation.

While other black marks can be used against you, technically a bankruptcy cannot. Under Title 11 of the U.S. Code, employers are prohibited from discriminating against someone who has filed for bankruptcy. Since most people have trouble paying their bills before they file, this is often a moot point -- the employer can point to that history as the reason for the adverse action. If an employer makes the mistake of citing your bankruptcy as the reason you were fired, not hired or denied a promotion, though, you might want to consult a labor attorney about a lawsuit.

An employer is supposed to tell you if credit information is used against you.

If an employer uses credit information to deny an applicant a job, fire a current employee, rescind a job offer or cancel a promotion, federal law requires the employer to do two things:

1) Before the adverse action is actually taken, the employer is supposed to provide the worker with a copy of the report and an explanation of the workers FCRA rights.

2) After the action is taken, the worker must be told which company provided the credit information, be given the company’s contact information and told he or she has a right to dispute the report’s accuracy.

Rather than go through all this, of course, many employers simply find a less complicated excuse to give you.

Your ability to dispute the information may be of limited use, as well. If your employer’s decision was based on erroneous data in your credit report, for example, it could take you months to get the problem corrected -- by which time someone else will have been hired for the position you wanted.

Employment Credit Reports Contain Limited Data

An employment credit report is a modified credit report that helps potential and current employers make hiring and promoting decisions. This report contains much of the same information about your loans and credit cards that your credit report has listed. However, your marital status, year of birth, and account numbers are omitted from the employment credit report.

4 Reasons Employers Pull Credit Reports

Gauge Responsibility.  Employers want to know if you are responsible, and one of the best ways to determine this is to run a credit check. This shows them your spending habits, your ability to pay back debt and your collection history.

Identity Verification.  In this new age of identity theft, employers must be very careful about who and how they hire. Running a credit check gives an employer an alternate means to verify a prospective employee’s identity, which is a plus for both the company and the employee.

Employment History Verification.  Another reason why prospective employers may run credit checks is to verify previous employment. Since an employee can write whatever he or she wants on a resume or application, many employers are careful about believing what's been written down.

Identify Candidates for Theft.  Although this is often considered discriminatory, employers often run credit checks to assess whether or not an employees is a likely candidate for workplace theft. If you have lots of unpaid debt and if you are harassed on a daily basis by creditors, an employer may feel that you would be more likely to steal from them.

Better Score; Better Job

Your credit history can work for you or against you. Your proven ability to manage your money and meet your financial obligations is often viewed as an indication of your maturity and stability and can open many doors. Prospective employers view a strong credit history as a positive sign that you will meet your obligations and responsibilities to them as well. A poor credit history could result in not getting that dream job.

Employers Want Reliable, Responsible Employees

Employers have begun to take a serious look at credit reports and scores as another requirement for hopeful applicants. The types of employers who examine credit reports tend to be in the more professional career fields. While this may seem unfair and illogical to applicants, the reasoning behind it is rather simple. Employers are concerned that with bad credit, the employee will not be able to focus fully on the job at hand.

According to Tom Garmin, a leading expert for 25 years from Virginia Tech in the field of financial impacts on worker productivity, states that "Financially distressed workers are like a poison poured on the floor of the workplace. You can’t see the poison, but it’s there.  It permeates more than just the employee who has a problem.  It permeates the workforce.”  He also notes that “About a third of employees say that financial problems are affecting their job performance...  Wasting about 20 hours of work time a month dealing with money problems, according to research on employees in 25 states.  (click here for article)

What’s more, employers don’t want the day disrupted by persistent calls from bill collectors to their employees. This is a valid concern since the more tenacious of bill collectors have been known to harass debtors at their places of employment.
Potential employers may use your credit history to determine whether or not you are a good risk. If you’re a poor credit risk, you may also be seen as a poor employment risk. According to an article on The Wall Street Journal Career website, a survey by The Society for Human Resource Management found that 35% of employers checked credit reports. That was in 2003…up from 19% in 1996. It's even higher today.

Your employment history is not part of your credit score, but your credit score could be factored into your chances of getting a job. A good credit score could also give you an edge if a potential employer runs a credit check for applicants.
If you're interviewing for a position that involves finances, confidentiality, and handling money then it's likely that your employer will run a credit check before they make you a job offer. Some companies check applicants' credit regardless of the specific position under consideration.

Many employers believe running an employment credit check is an absolute must if the applicant under consideration will be handling money, or be placed in a position of financial trust, sighting a possible correlation between high debts and, for instance, the possibility of embezzlement.

Credit history may reveal several qualities of an applicant's financial status, such as debt load and potential debt load. The employment credit report can identify the possibility of financial problems that may adversely affect an applicant's performance on the job.

An employment credit report provides an easy-to-read insight into an applicant's financial responsibility as well as listing any aliases, bankruptcies, liens, judgments, credit cards, loans, mortgages, collections and summaries of the individual's payment patterns. Reports may also contain previous employers and addresses.

Overall, it's a reflection of a person's character. That's the assumption these companies make. Given everybody is equal in their backgrounds and skill set, if one person has a better credit score, you're probably going to be better off with that person. (insert story)

This is all part of the trend to use credit history outside of traditional lending. Insurers and employers have found that credit behavior does not exist in a vacuum and can be predictive of future behavior in other areas

So, you can see the consequences of bad credit are becoming more far-reaching every day. Of course, this is in addition to the usual pain and suffering caused by high interest rates, excessive fees and the unpleasantness of having to deal with progressively hungrier lenders as your credit history deteriorates.

These items can be removed from your Credit Report:

These negative items include (but are not limited to):

Late Payments
Charge Offs
Collections Accounts
Foreclosures
Identity Theft
Excessive third-party inquiries
Bankruptcy
Tax Liens
Repossessions
Judgments - Call 1.800.442.1591 for your FREE Consultation

What is Debt Validation?

Make Debt Collectors Prove You Owe

Debt validation (DV) is a process where a consumer challenges a third party debt collector (i.e., collection agency or attorney) to provide written verification (also called "validation") of a debt. Your opportunity to use DV is limited to the first 30 days after receiving the initial written notice of your right to request validation of the debt being collected.

As described in the excerpt from the Fair Debt Collection Practices Act (FDCPA) below, this "request for validation" effectively stops the collection process until the debt is validated.

Call 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

Build Your Future

Our customized tools, educational approach, and proven technology guide you through the tasks and action items you need to take in order to maintain a healthy score and accomplish your credit goals.

Call 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

We work with the credit bureaus and your creditors to challenge the negative report items that affect your credit score. We'll ensure your credit history is up-to-date, accurate, and reflects you honestly.

Call 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

Hire a Professional

Our mission is “Helping People Manage & Grow Their Credit Worthiness”.

We believe that each person’s credit situation is unique and requires a custom plan of action. In addition to this, we also believe that customer communication, consultation and education are crucial to accomplishing our customers’ goals.

We have developed our business almost exclusively through referrals from banks and loan officers and have helped literally thousands of people improve their credit.

When you hire a credit restoration company, there are disclosures and laws regulating their activities. View Credit Matters registration certificate as a registered credit service organization with the State of Wisconsin.

View a copy of the State and Federal Disclosure Statements for credit restoration customers.

View the Credit Repair Organizations Act (CROA); signed into federal law to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.

Our office is available and we would love to assist you; 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

DO NOTHING, EXPECT NOTHING... Errors are bound to appear in your credit report. In fact, according to a 2004 report made by the National Association of State PIRGs (Public Interest Research Group) 25% of credit reports contain errors that result in people being denied credit! If you don’t review your report once in a while, you won’t know what’s reported in it. And then, when you apply for credit or employment and find that you are denied because of your credit, well… what do you expect?

The bottom line is, you have the right to do something about it. Don’t expect the CRAs or creditors to make sure that your credit report is up-to-date and accurate. That’s your responsibility. If there’s errors, then you can and should dispute them.

Call our office, we would love to assist you; 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

9 Benefits of Having a Good Credit Score

1.Low interest rates on credit cards and loans.

The interest rate is one of the costs you pay for borrowing money and, often, the interest rate you get is directly tied to your credit score. If you have a good credit score, you’ll almost always qualify for the best interest rates and you’ll pay lower finance charges on credit card balances and loans. The less money you pay on interest, the more you have for everything else including repaying your balance.

2.Better chance for credit card and loan approval.

With a shaky credit history, you’ll probably avoid making new credit card or loan applications because you fear you’ll be turned down. Having an excellent credit score doesn’t guarantee approval – because lenders still consider other factors like your income and debt – but it does give you a very good chance of being approved. When you decide to apply for a credit card or loan, you can do it with confidence.


3.More negotiating power.

A good credit score gives you leverage to negotiate a lower interest rate on your credit card or a new loan. If you need more bargaining power, you can refer to great offers you’ve received from other companies based on your credit score. However, if you have a low credit score, creditors typically won’t budge on loan terms and you may not have the freedom to shop around.


4.Get approved for higher limits.

Your borrowing capacity is based on your income and your credit score. One of the benefits of having a good credit score is that banks are willing to let you borrow more money because you’ve demonstrated that you pay back what you borrow on time. You can still get approved for some loans with a bad credit score, but the amount will be limited.

5.Easier approval for rental houses and apartments.

More landlords are using credit scores to screen tenants. A bad credit score, especially if it’s caused by a previous eviction or outstanding rental balance, can severely damage your chances at getting into an apartment. A good credit score saves you the time and hassle of finding a landlord who’ll overlook damaged credit.

6.Better car insurance rates.

Add auto insurers to the list of companies that use a bad credit score against you. Insurance companies say that people with bad credit tend to file more claims and these people are penalized with a higher insurance premium. With a good credit score, you’ll pay less for insurance than similar applicants with lower credit scores.

7.Get a cell phone on contract with no security deposit.

Another drawback of having a bad credit score is that cell phone service providers may not give you a contract. Instead, you’ll have to choose one of those pay-as-you-go plans that have more expensive phones. People with good credit avoid paying a security deposit and can get hundred-dollar discounts on the latest phones by signing a contract.

8.Avoid security deposits on utilities.

These deposits are sometimes $100 to $200 and a huge inconvenience when you’re relocating. You may not be planning to move soon, but a natural disaster or other unforeseen circumstance could change your plans. A good credit score means you won’t have to pay a security deposit when you establish utility service in your name or to transfer service to another location.

9.Bragging rights.

Because of all the benefits, a good credit score is something to feel good about, especially if you've had to work hard to take your credit score from bad to good. And if you've never had to experience a bad credit score, keep doing what it takes to keep your good score.

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How Does Credit Repair Work?

A recent Federal Trade Commission study found that one in five consumers have an error on at least one of their credit reports. If you have items on your credit report that don’t meet the three standards, then you may want to consider credit repair — either Doing It Yourself or via hiring a professional.

A good credit restoration company will first pull your credit reports from each of the three major credit reporting agencies to pinpoint your credit issues. Why all three? Because each credit reporting agency has its own “data furnishers” (aka lenders, credit card companies, debt collectors, etc.) who report your credit information to them. And there may be errors that appear on one of your credit reports, but don’t appear on the others.

Once those errors have been identified, you’ll then give a credit restoration company any supporting documentation you might have or need. For example, if there’s a bill on your credit report that your husband was actually responsible for under your divorce decree, you can use that document to prove it shouldn’t be impacting you.

In some cases it might be difficult to determine what to include as far as supporting documentation goes — that’s another way a credit repair company can help you. For example, if you’re a victim of identity theft and a fraudulent account is appearing on your credit report, it can be tough to prove it isn’t yours since you naturally don’t have any documents relating to the account.

When the bureaus and data furnishers receive the dispute and supporting information, they will then work with the credit repair company to determine if the item should be removed from your credit report. The major law dictating your rights when it comes to credit reporting is the Fair Credit Reporting Act, but it isn’t the only law on your side when it comes to credit repair.

“A good credit repair company will scrub questionable credit report items against other laws — like the Fair Credit Billing Act, which regulates original creditors; the Fair Debt Collection Practices Act, which oversees collection agencies; and others that address medical illness, military service, student status and other life events.” ~Janell Jones-Travis

How Long Does Credit Repair Take?

Getting negative, inaccurate information off of your credit reports is one of the fastest ways to see an improvement in your scores. Since credit bureaus have to respond and resolve a dispute within 30 days (there are a few exceptions that may extend this to 45 days), it’s a short timeline that can help consumers who want to buy a house, get a new car or open up a new credit card soon and don’t have the time to wait to build good credit in other ways.

But that doesn’t mean a credit restoration company can tell you exactly when your credit score will improve since some consumers’ credit issues are much more complex than others.

“Since every case and credit report is unique, no professional firm can ethically predict an exact outcome for your Credit Scores, especially without first seeing the credit reports. “When picking a credit repair company to fix your bad credit, don’t ask about the future, but instead ask about what real clients have seen in the past and if the items return.” ~Janell Jones-Travis; BCC President/CEO

Does Credit Repair Work? Can Credit Repair Companies Help?

A bad credit score can cost you some serious cash. Over your lifetime, you can lose hundreds of thousands of dollars to a bad credit score.

That’s a pretty shocking number, and it should be. Bad credit means higher loan interest rates and higher insurance premiums and that all adds up over the years. Bad credit can hold you back from achieving major life goals like buying a house, going back to school, taking a dream vacation or even retiring on schedule.

But what if you have bad credit because there are errors on your credit reports? Or there’s something that’s decades old? Or a single item that’s appearing multiple times? It seems pretty unfair to pay more interest on a credit card, car loan and mortgage because the credit bureaus have wrong information about you in their files. You can go through a dispute process with each of the credit bureaus on your own, but many people either don’t have the time or don’t understand how to make their case. This is when many consumers start looking into hiring a credit repair company; BANCO Capital has been around for 20 years. We are an A+ with the BBB, Our consultations are FREE; 1.800.442.1591 - Gaining Financial Stability with Intelligence and Integrity!

How do I get and keep good credit score?

How do I get and keep good credit score?

To get and keep a good credit score,first pay your bills on time.

There are no secrets to building a strong credit score,but following these guidelines should help:

Pay your bill on time,every time. One way to make sure your payments are on time is to set up automatic payments, or set up electronic reminders. If you've missed payments, get current and stay current.

Don't get close to your credit limit. Credit scoring models look at how close you are to being "maxed out," so try to keep your balances low in proportion to your overall credit limit. Experts advise keeping your use of credit at no more than 30 percent of your total credit limit.

NOTE: You don't need to revolve on credit cards to get a good score. Paying off the balance each month helps get you the best scores.

A long credit history will help your score. Credit scores are based on experience over time. The more experience you have with getting credit and paying your bills on time, the more information there is to determine whether you are a good credit risk

Only apply for credit that you need. Credit scores look at your recent credit activity as an indicator of your need for credit. If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively

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