Credit Justice Services BLOG

In today's economy, it’s all about your credit scores -- and that’s scary. A good credit score is between 730 and 850. In today’s market your credit score is being used for all types of things, like whether or not you will be approved for a car loan, mortgage, car insurance, or even a job. It’s more important now than ever to do all you can to raise your credit score.

Here are some things you can do to improve your credit score immediately.

• Use your old credit cards. The credit-scoring model at all three bureaus rewards people for having a longer credit history (amount of time you’ve had credit). This is why it’s a good idea to hold on to old credit cards instead of cancelling them. But your credit score also places more weight on recent activity than on a dormant credit card. So if you have an old credit card with a zero balance, fill up your car or SUV with gas to reactivate the Date of Last Activity (DLA) on the card. PLEASE DO NOT charge your card above 30% of the credit limit!!!

• Start to spread out your credit card debt. It is not good to have one credit card MAXED out and two others with small balances. Start transferring your debt amongst all your cards in order to keep the balances below 30% of the card’s limit. This will give your scores the most bang for your buck. Maxed-out cards are indications that you could be having financial troubles and will be a red flag to lenders, not to mention that it also crushes your credit score.

• Make payments before creditors update your file. To make your credit utilization ratio (credit limit divided by credit balance) look even better, have your credit report pulled and note what day of the month your creditors are sending updates to the credit bureaus (most creditors update your file on the 28th of the month). Then, make your payments so they are recorded a few days before that reporting date. This will insure that your creditors will be reporting the lowest balance on your accounts, which will increase your credit scores.

• Look out for inaccurate negative information on your credit reports. Consistently look for information that is inaccurate, too old (more than seven years), misleading, incomplete, or unverifiable, and work to remove this damaging information on your credit reports.

For a FREE evaluation of your credit report call 904-757-0880 or email us at info@creditjusticeservices.com.


Douglas Muir, CEO

As the former owner of one of the largest collection agencies in the U.S., I have done it all. I am pleased to say that I now work for the consumer, like you, in protecting your rights against those pesky collection agencies.
There are a few things you need to look out for when contacted by a collection agency.

1. Make sure you get their information. Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money. But remember -- these numbers are inflated!

2. Send the collection agency a “Validation of Debt” letter. Once you do this, all phone calls must stop until the debt is validated. This means a signature, contract, or some type of agreement must be presented to you. Anything less than that is NOT considered validated.

3. Go online and research the company’s ability to operate in your state. You can find this information at http://www.collectionagency411.com/collectionagencylicense.htm. If the collection agency is not licensed in your state, report them to the Attorney General and notify the collection agency that you are doing so. This will stop the letters and harassing phone calls.

4. DO NOT make any payments or agree to make any payment until the debt is validated. You will lose most of your rights under the Fair Debt Collections Practice Act (FDCPA) if you do.

I can’t tell you how many thousands of people paid me for debt that I had no contract or signature for. And if they didn’t pay, I would place a judgment against them because you the consumer would NEVER show up to court to dispute the validity of the debt.
I am pleased to say my company was never sued because we operated within the state and federal guidelines, but I’m here to tell you there are many unscrupulous collection agencies out there that are operating illegally. All it takes is to know the steps above to beat them at their own game.

Please feel free to buy the book on my web site, www.creditjusticeservices.com, called Consumer Protection Enforcement (C.O.P.E.). This book was written by my partner and consumer attorney, assisted by me, to help the consumer fight against the collection agencies and credit-card companies without having to use an attorney. You have the right to sue a collector in small claims court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. Our book has a 98% win ratio in court and was written to protect consumers like you against fraudulent collection agencies.

Douglas Muir, CEO
Credit Justice Services, LLC
904-757-0880
www.creditjusticeservices.com

As a CCC with Credit Justice Services, I relish the results people report to me after they have used our 90 Day Credit Makeover Plus to repair their credit. There’s nothing like the phone call that makes your heart sing – a positive report from a satisfied client who has increased their credit score and is moving forward with their plans for their financial life.

This past week I spoke to a man who was in tears. He told me about a life situation that lead him to living off credit cards for a period of time and the crushing credit card debt he lives with every day. He had received a letter in the mail from his major credit card company informing him that they had raised his interest rate 3 times, because they had been monitoring his credit score and it had slipped below what they deemed reasonable. He was panicked, devastated and embarrassed. He called the credit card company who agreed to lower the rate to the original rate, but informed him that if he charged just ONE more item anytime in the future, they would put the rate back up to the 3 times level = 18%. He began to panic again, knowing him gym membership payment of $20 was due to be charged to that account any day. He frantically tried to contact the billing department of his gym to avoid the billing.

Unfair credit card practices are creating chaos in people’s lives. A bill to stop these practices has stalled on the floor of the House. Until something changes, and laws are put in place to protect American consumers, below is a list of credit card company tacks to be aware of:

(From American’s for Fairness in Lending, Credit Card Action Center, posted July 11, 2008) Credit card contracts are packed with fine print tricks and traps to increase the likelihood of paying fees and penalties. You will be hard pressed to find a credit card without these terms – at least until our government outlaws them – but if you’re informed and cautious, you have a better chance of steering clear of the traps and saving money.

Fees and More Fees – On any given month, you might pay a late payment fee, overlimit fee, cash advance fee, balance transfer fee, foreign exchange fee, bill payment fee, Western Union fee, and whatever else your lender can devise. Not to mention monthly and annual fees.

Tricks to Make You Pay Late – These come in many varieties. If you’re late you’ll pay a hefty fee and your interest rate may go up. Check each statement carefully and pay your bill as soon as it arrives.

Changing Due Dates – Your bill will not be due on the same day every month.

Early Due Dates – Bills may be due just a few days after you receive them.

Weekend Due Dates – If your due date is on the weekend and your payment arrives on the date, it won’t be processed until Monday and you’ll be considered late.

Morning Due Times –Your payment may be due at 9am on the due date, not 5pm.

Approved Overlimit Charges – If a purchase puts you over your limit, your credit card company will approve the charge then hit you with an overlimit fee and maybe even raise your interest rate. Keep careful track of your balance and know that even approved charges may put you overlimit.

Universal Default – Pay Card A on time but pay late to Card B (or anything else monitored by your credit score) and your interest rate on Card A may jump!

“Any Time For Any Reason” Changes – Most contracts include this ominous phrase. It means just what it says – they can increase your interest rate on a whim.

Teaser Rates That Don’t Stick – An introductory 0% interest rate can jump to 30% with a late payment or if you go overlimit. Don’t bank on keeping that 0% rate for the entire promotional period.

Retroactive Application of Higher Interest Rates – To make things worse, if your interest rate increases, they can apply the higher interest rate to the entire existing balance, not just to new charges.

Allocation of Payments – If you end up with two or more different interest rates, they will apply your payments to the balance with the lower interest rate first. The rest of your balance will continue to generate high interest charges until the low-rate balance is entirely paid off.

Tricky Interest Calculations – For some cards, you can pay interest on purchases from previous cycles. This is known as double cycle billing. Look for a card that uses the “Average Daily Balance” interest calculation method.

Credit “Protection” – Services like this may sound good, but they’re usually useless. The fee for the service likely exceeds the minimum payments it would cover if you became sick or lost your job. Avoid add-on products like this.

Binding Mandatory Arbitration (BMA) – This provision requires that you resolve any conflict with an arbitrator selected by the lender, which means you give up your right to take the credit card company to court.