D.T.I. Credit Info Page

"We've Never Seen a Legitimate Credit-Repair Operation"
Steven Baker, director of the Federal Trade Commission, Chicago Regional Office.

We Suggest:

keep cards active by rotating the use of one credit card at a time to keep the accounts open.

Perhaps charge a monthly bill to a card, such as your telephone, and pay-off the card monthly.

Hold-on to a credit card with a long history, and don't cancel it, because the longer you hold a card in good-standing, the more valuable it is in your credit-profile.

What if I disagree with the information on my credit report?

The information reported to the repositories is only as current and accurate as the information reported by the Creditors. Information should be disputed by contacting the creditors directly and it should be completed in writing. The names, addresses, and phone numbers of most creditors are listed on the last pages of your pre-qualifying credit report and are listed as Direct Check Addresses. Once you have settled the disputed accounts the information is then provided to the repositories that will then make the appropriate changes.

What if I cannot contact the creditor?

You may dispute the account directly with the repository. Creditors have 30 days to document your credit history or the credit repositories must remove it.
How long does negative information stay on my credit report?
Most information, by law, must be removed from the credit history 7 years after date of original occurrence. Chptr 7 & chptr 11 bankruptcies may be reported for ten years.
What is a credit bureau score, and how is it calculated?

How important is my credit score?

The importance of the credit score depends on the lender and the loan program chosen. Some lenders or loan programs do not use the credit score at all. Some lenders and loan programs require that minimum credit score must be met and many loan programs offer different terms based upon different scores. Your loan officer can explain the importance of the score for your particular loan program.

What can I do to increase my credit score?

The credit score is determined by the credit repositories (not the lender or credit reporting company) and is not a point system that changes with every change of information on your credit report. A score may be increased by the following methods:

A. Have incorrect credit histories removed. Getting written proof from the creditor and providing that information to the credit bureaus can do this.

B. Close unused accounts. Too many accounts may indicate that a borrower is an excessive user of credit.

C. Establish long-term on-time payment histories with good credit providers. Accounts established for a long time with good payment history show that a borrower has stability and indicates a trend to repay on time.

D. Consolidate revolving charge cards and or finance companies types loans to fewer accounts with lower payments. This shows that you are a conscientious borrower who understands and values your available credit and its costs.

E. Resolve all derogatory and disputed credit histories. This shows that you maintain good credit relationships and have met all your previous obligations.

F. Limit the number of your credit inquiries. Credit inquiries appear on your credit report for 90 days but the information stays with the credit bureaus for 2 years. Once you have repaired or restructured your finances do not continue applying for more credit.

How long does it take to change my credit score?

The process can take 30 to 60 days to repair incorrect or changed credit histories. The score is based on the database information held at the bureau. This can be changed by contacting them directly or from new information reported from your creditors which is typically done once a month.

My divorce decree states that I am no longer liable for certain accounts. Why are those accounts still showing on my credit report?

A divorce decree does not override the original contract with the creditor. Even if the divorce decree states that your spouse is responsible for the payments, if the loan was originally a joint account, you are not released from legal responsibility on the account from the creditors. You should contact each creditor and seek their legal binding release of your obligation.

Typically, these debts will not be used against you for qualifying purposes if a copy of the divorce decree is provided and the accounts are current. For loan approval proof (12 months canceled checks) that the primary borrower makes the payment may be required.

Don't apply for new credit cards or other consumer loans.

Potential lenders will check your credit report when you fill out an application, and those inquiries are noted on your history. Each inquiry can lower your credit score from 1.5 points up to 20 points per inquiry. Multiple inquire scan definately lower your credit score.

Where do they get the information in my Credit Report?

The credit report companies receive their information from the national credit repositories: Experian (formerly TRW), Trans Union, Equifax, along with public records firms, such as:

What types of specific information are used for this score?

The score is based on all credit related data available, not just negative data.
Negative credit information includes how late payments were (severity), If any recent late payments, and how many there are (frequency). It will also include collection accounts, how much debt do you have outstanding, judgments, and foreclosures. Other types of data used includes available credit, total percentage of credit available, how long has credit history been established, and types of credit used (IE: revolving accounts & finance companies may be worse than bank or credit union loans.) Other data used is the number of loan inquiries.

Credit bureau scoring is a scientific way of assessing how likely a borrower is likely to default on a new loan. The scores range from 300 to 850 points and is a complex mathematical formula based on millions of consumers credit histories and their track records of defaulting on credit.

FREE CREDIT REPAIR SOLUTIONS

1) Obtain your credit report from EACH of the three Credit Bureaus: Experian, Equifax, and Transunion. Most times its cheapest to purchase your reports online directly through each credit bureau's web site rather than going through a reseller (who makes a profit).

2) Check for accuracy & errors. Make sure all of the accounts listed are YOURS. Make sure all closed/paid accounts have been reported as such.

3) Dispute inaccurate information through EACH bureau. (This is a very important point)
Since each credit bureau do NOT share information with one another, you must dispute inaccurate information with EACH Bureau separately.

Disputed information that's Not verified in 30 days, Must be removed from your file.

4) The best way to build credit.. is to obtain credit! Fortunately there are bad credit lenders who will grant small loans, secured credit cards, and unsecured credit cards with low credit limits. Proper use of the credit privilege provided by these lenders is reported to the credit bureaus and your credit scores will improve over time!

5) Reduce your balances on existing credit cards to 40% or less of your available credit
(this gives you more credit on your credit profile)

6) Finally, Do Not fall for credit repair scams! A sure way to repair credit is by following the steps above, that You can do yourself, For Free! (excluding the cost of credit reports from each bureau)

Credit Repair

The credit report information that's used to calculate the score:

35% -   Payment History --   Do you make payments on time?
30% - Amount Owed --     Versus balances on revolving acc's.
15% - Length of History -- How long credit's established ?
10% - Types of Credit --     Variety is key- installment & revolving.
10% - New Credit obtained - Have you applied for credit lately?

This information gives you an accurate idea of which factors on your credit report are impacting your scores the most.

A credit repair company cannot do anything
the consumer cannot do themselves.

It's never too late to make a smart move, even if your score isn't pretty, in as little as 3-6 months, you can raise even a modest credit score.

• Identifying Information, such as your name, address and Social Security number;

• Credit History such as: length of opened accounts, and how much you owe, the amount of your credit limits, and whether you paid on time;

• Public Records, such as whether you have any bankruptcies, foreclosures, liens, repossessions, or legal judgments against you (including failure to pay child support or taxes)

• Lists of recent credit inquiries.

Credit scores are calculated using a complex construction of formulas and factors, based on the information in a consumer's credit report, as well as additional information. Some lending companies use proprietary scores, based on in-house formulas, while others use brand-name scores like FICO or VantageScore, which they buy from the major credit reporting agencies:

TransUnion, Equifax and Experian. Both FICO and VantageScore have their own scale and formulas for creating a score. For example, a 660 FICO score, based on its 300 to 850 scale, is relatively higher than a 660 Vantage score, which is based on a scale of 501 to 990.

Serving El Paso County
for over 14 years...

Credit Cards allow you to spend money that you really don't have. Whenever you use a credit card, the balance you owe increases, and your remaining available credit decreases.

Since you can spend more than you currently have, you can easily find yourself in over your head in debt from the funds borrowed. but remember to factor-in the interest rate and a variety of fees.

One of the most important points of all!
High debt-to-credit ratios will have a significantly negative impact on your credit score.

Please note - AnnualCreditReport.com works very well for correcting any errors appearing on any of your credit reports, but it does Not include your scores.

One place to obtain all three of your credit reports with all three FICO Scores is MyFICO.com