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Dollar May Extend Decline Against Euro Before Payroll Report
By Ye Xie
Aug. 1 (Bloomberg) -- The dollar may extend its decline against the euro before a U.S. government report forecast to show employers cut payrolls in July for a seventh month.
The currency dropped yesterday as the U.S. economy grew less than forecast in the second quarter and initial jobless claims rose last week to a five-year high. The dollar pared its losses as crude oil prices fell, deepening the decline last month to 11 percent.
NOTE: TOM FITZPATRICK IS A WELL RESPECTED PERSONALITY IN THE TRADE CURRENCY INDUSTRY.
``The deterioration of the labor market is accelerating,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``I don't think we've seen the highs in the euro-dollar yet.''
The dollar traded at $1.5601 per euro at 6:24 a.m. in Tokyo, after dropping 0.2 percent yesterday. It reached a record low of $1.6038 on July 15. The dollar was at 107.84 yen, following a 0.2 percent decline. The euro was little changed at 168.26 yen.
South Africa's rand rose as much as 1.2 percent yesterday to 7.3014 against the dollar, the highest since February, after a report showed the country's trade deficit unexpectedly narrowed in June. The rand increased 6 percent in July, for the best performance among the world's major currencies.
Crude oil fell 2.2 percent to $124.05 a barrel on the New York Mercantile Exchange yesterday. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations based on their value changes. A reading of 1 would mean they moved in lockstep.
`Quite Heavy'
NOTE: ERATIC CHANGES IN PRICING OF CRUDE OIL GIVES ERATIC EFFECTS.
``Oil looks quite heavy, and commodities seem to be in a longer-term downward trend,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``It lent some support to the dollar.''
Some companies also bought the dollar at month-end to balance their books, according to Osborne.
Futures contracts on the Chicago Board of Trade showed yesterday a 30 percent chance that the Fed will raise its 2 percent target rate for overnight loans between banks by at least a quarter-percentage point by Sept. 16, down from 38 percent odds on July 30. Most traders expect policy makers to hold borrowing costs unchanged when they next meet Aug. 5.
U.S. gross domestic product increased at an annual rate of 1.9 percent in the second quarter, the Commerce Department reported yesterday. The median forecast of 79 economists surveyed by Bloomberg News was for an advance of 2.3 percent. The report also showed that a recession may have begun in the final three months of 2007, as GDP was revised to indicate a contraction in that period.
Jobless Claims
Initial jobless claims rose to 448,000 in the week ended July 26, from a revised 404,000 the prior week, the Labor Department said yesterday. The total number of initial filings last week was the highest since April 2003.
The U.S. currency touched a one-month high against the euro on July 30 after an ADP Employer Services report showed companies unexpectedly added jobs last month.
``The dollar's rally was built on a shaky foundation,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``There's more downside risk to growth.''
U.S. non-farm payrolls dropped by 75,000 last month, following a decline of 62,000 in June, according to the median forecast of 79 economists surveyed by Bloomberg News. The Labor Department's report, which includes government hiring, is scheduled to be released at 8:30 a.m. in Washington.
Dollar in July
The greenback strengthened 1 percent against the euro and 1.6 percent versus the yen in July on speculation the U.S. growth slowdown is spreading to other developed nations. Reports last week showed German business confidence declined and European manufacturing and services contracted.
``The dollar bounce is nothing short of stunning,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. ``Economies elsewhere are showing fresh signs of deterioration.''
Turkey's lira advanced to a six-month high yesterday after the Constitutional Court's decision on July 30 to reject a call by prosecutors to ban the ruling party, which is seeking to introduce Islamic law. The lira climbed as much as 2.4 percent to 1.1555 per dollar, its strongest since Jan. 15. It gained 5.4 percent versus the dollar in July.
To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net
Last Updated: July 31, 2008 17:28 EDT
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Thursday, July 31, 2008
WOMAN TOUCHING HER STOMACH
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Cosmetic surgery
More and more people are having surgery to tidy up those bits of their body they have never liked, from nose jobs to tummy tucks.
The most important thing is not to rush into cosmetic surgery
Only you can know what you think is right for you, but the most important thing is not to rush into cosmetic surgery. Think carefully about why you want it and what you realistically expect it to do for you. Having a breast enlargement or a face-lift may make you feel better, but it's unlikely to get you the job of your dreams or rescue a failing relationship.
NOTE: IT IS IMPORTANT TO BE AWARE OF ALL QUALIFIED AND EXPERIENCED SURGEONS.
Make sure you see a qualified and experienced surgeon. The best place to start is by talking to your GP. They'll know who the local surgeons are and what their reputations are like. Also, you may need a referral letter from your GP to get an appointment with the cosmetic surgeon you want to see.
You could also talk to any friends who've had similar operations about their experiences and what their surgeon was like.
The Department of Health has comprehensive information about cosmetic surgery to help people make informed choices. It can be downloaded as a PDF.
The British Association of Aesthetic Plastic Surgeons can also provide you with a list of qualified surgeons in your area.
Remember, cosmetic surgery:
* Can be very expensive (it's rarely available on the NHS)
* Isn't without risks and complications
* Doesn't always give the results you hope for
If you have any doubts, don't go ahead until you're clear about what you're doing. Cosmetic surgery can be one of the biggest life changes you'll ever experience - good luck making an informed decision.
This article was last medically reviewed by Dr Trisha Macnair in August 2007.
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Woman touching her stomach
Cosmetic surgery
More and more people are having surgery to tidy up those bits of their body they have never liked, from nose jobs to tummy tucks.
The most important thing is not to rush into cosmetic surgery
Only you can know what you think is right for you, but the most important thing is not to rush into cosmetic surgery. Think carefully about why you want it and what you realistically expect it to do for you. Having a breast enlargement or a face-lift may make you feel better, but it's unlikely to get you the job of your dreams or rescue a failing relationship.
NOTE: IT IS IMPORTANT TO BE AWARE OF ALL QUALIFIED AND EXPERIENCED SURGEONS.
Make sure you see a qualified and experienced surgeon. The best place to start is by talking to your GP. They'll know who the local surgeons are and what their reputations are like. Also, you may need a referral letter from your GP to get an appointment with the cosmetic surgeon you want to see.
You could also talk to any friends who've had similar operations about their experiences and what their surgeon was like.
The Department of Health has comprehensive information about cosmetic surgery to help people make informed choices. It can be downloaded as a PDF.
The British Association of Aesthetic Plastic Surgeons can also provide you with a list of qualified surgeons in your area.
Remember, cosmetic surgery:
* Can be very expensive (it's rarely available on the NHS)
* Isn't without risks and complications
* Doesn't always give the results you hope for
If you have any doubts, don't go ahead until you're clear about what you're doing. Cosmetic surgery can be one of the biggest life changes you'll ever experience - good luck making an informed decision.
This article was last medically reviewed by Dr Trisha Macnair in August 2007.
Back to top
Disclaimer
All content within BBC Health is provided for general information only, and should not be treated as a substitute for the medical advice of your own doctor or any other health care professional. The BBC is not responsible or liable for any diagnosis made by a user based on the content of the BBC Health website. The BBC is not liable for the contents of any external internet sites listed, nor does it endorse any commercial product or service mentioned or advised on any of the sites. See our Links Policy for more information. Always consult your own GP if you're in any way concerned about your health.
In Lifestyle
Cosmetic surgery on the NHS
Confidence and body image
Elsewhere on bbc.co.uk
News: Cosmetic clinics 'downplay risks'
News: Britons 'have ops for partners'
Science & Nature: extreme cosmetics
News: 'Few ask GP' before cosmetic ops
Elsewhere on the web
NHS Direct: cosmetic surgery
British Association of Plastic, Reconstructive and Aesthetic Surgeons
The BBC is not responsible for content on external websites
About the BBC | Help | Terms of Use | Privacy & Cookies Policy
Advertise with us
Tuesday, July 22, 2008
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Cutting spending doesn't have to be painful. It doesn't necessarily mean that we have to do without all the things we want. There are plenty of places in our everyday lives where just being smart and careful will yield up some extra dollars.
From the August Consumer Reports magazine, here are three ways to cut spending:
1. Cheaper auto insurance. Most people tend to stay with their car insurer for a long time, but they could be missing out on saving hundreds by shopping around once and a while. To find a better plan, start with the National Association of Insurance Commissioner's, www.naic.org, then click on NAIC States and Jurisdictions to find your state's insurance department. Here you can find comparative premium quotes based on standard customer profiles. Other sites to check where you can compare premiums include www.insweb.com and www.insurance.com.
NOTE: NATIONAL ASSOCIATION OF INSURANCE COMMISION IS COMPOSED OF NUMEROUS COMPETITIVE COMPANIES IN INSURANCE INDUSTRY.
2. Be smart about buying food. According to the Department of Agriculture, the average family of four can cut down its grocery bill by $190 a month by shifting to a lower-cost mix of foods. That's a lot of money to save just by changing food-buying habits. You can adjust your habits by planning menus around sales on fresh poultry, fish, meat, dairy, and produce, and by making use of leftovers. Avoid costly prepared foods. And start shopping in lower-cost stores: Costco, Trader Joe's and Wal-Mart, to name a few.
3. Cut your credit-card balance. If you have a credit-card balance, you're paying annual interest charges all the time. For example, a balance of $2,200 on which you pay 15.2% interest, means you are paying $28 per month. Eliminate that balance, and you'll save $336 a year. Of course, eliminating your balance is not easy. First you need to stop charging, then start paying more than the minimum.
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* Missed the Market Rally? Don't Sweat It.17990937
Let the stock jockeys lose their shirts speculating wildly. Real people don't need to.
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Three ways to cut spending without much pain
By MARSHALL LOEB
MarketWatch
July 17, 2008 5:27 p.m.
Cutting spending doesn't have to be painful. It doesn't necessarily mean that we have to do without all the things we want. There are plenty of places in our everyday lives where just being smart and careful will yield up some extra dollars.
From the August Consumer Reports magazine, here are three ways to cut spending:
1. Cheaper auto insurance. Most people tend to stay with their car insurer for a long time, but they could be missing out on saving hundreds by shopping around once and a while. To find a better plan, start with the National Association of Insurance Commissioner's, www.naic.org, then click on NAIC States and Jurisdictions to find your state's insurance department. Here you can find comparative premium quotes based on standard customer profiles. Other sites to check where you can compare premiums include www.insweb.com and www.insurance.com.
NOTE: NATIONAL ASSOCIATION OF INSURANCE COMMISION IS COMPOSED OF NUMEROUS COMPETITIVE COMPANIES IN INSURANCE INDUSTRY.
2. Be smart about buying food. According to the Department of Agriculture, the average family of four can cut down its grocery bill by $190 a month by shifting to a lower-cost mix of foods. That's a lot of money to save just by changing food-buying habits. You can adjust your habits by planning menus around sales on fresh poultry, fish, meat, dairy, and produce, and by making use of leftovers. Avoid costly prepared foods. And start shopping in lower-cost stores: Costco, Trader Joe's and Wal-Mart, to name a few.
3. Cut your credit-card balance. If you have a credit-card balance, you're paying annual interest charges all the time. For example, a balance of $2,200 on which you pay 15.2% interest, means you are paying $28 per month. Eliminate that balance, and you'll save $336 a year. Of course, eliminating your balance is not easy. First you need to stop charging, then start paying more than the minimum.
RELATED ARTICLES FROM ACROSS THE WEB
Related Content may require a subscription | Subscribe Now -- Get 2 Weeks FREE
Related Articles from WSJ.com
• Inflation Surges on Energy Prices Jul. 16, 2008
• Rising Food Costs Further Pressure World Hunger Jul. 09, 2008
• The Mossberg Solution Jun. 28, 2008
• State Street Starts $2.5 Billion Offering Jun. 04, 2008
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Wednesday, July 16, 2008
AUTO INSURANCE RATES TO RISE BY 2010
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Auto insurance rates to rise by 2010
07:04 AM CDT on Wednesday, July 16, 2008
Associated Press
BATON ROUGE, La. -- A new law will raise auto insurance rates for more than one million Louisiana motorists in 2010 by increasing the minimum liability coverage required for drivers.
NOTE: LOUISIANA IS MADE AWARE OF THE CHANGES ON AUTO INSURANCE.
Governor Bobby Jindal didn't sign the bill, but he let it take effect without his signature.
Louisiana law currently requires car and truck owners to have at least "10-20-10" liability coverage. That's $10,000 coverage for damage of other people's property, $20,000 for injury or death to more than one person in an accident and $10,000 for injury or death to one person.
The new law will change the levels to "15-30-25" on January 1, 2010.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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Auto insurance rates to rise by 2010
07:04 AM CDT on Wednesday, July 16, 2008
Associated Press
BATON ROUGE, La. -- A new law will raise auto insurance rates for more than one million Louisiana motorists in 2010 by increasing the minimum liability coverage required for drivers.
NOTE: LOUISIANA IS MADE AWARE OF THE CHANGES ON AUTO INSURANCE.
Governor Bobby Jindal didn't sign the bill, but he let it take effect without his signature.
Louisiana law currently requires car and truck owners to have at least "10-20-10" liability coverage. That's $10,000 coverage for damage of other people's property, $20,000 for injury or death to more than one person in an accident and $10,000 for injury or death to one person.
The new law will change the levels to "15-30-25" on January 1, 2010.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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Monday, July 7, 2008
OVATION CREDIT REPAIR PROGRAMS
Credit Repair Specialist
toll-free (866) 639-3426
Se habla español
BBBOnLine Reliability Participation
Limitless Deletions |
For as long as you retain our services, Ovation will dispute any item within your program until you receive the results desired. Learn more about our programs...
close
Same Day Service |
When you add our FASTTRACK service to your program, you experience a premium level of service with same day disputing.
close
Full Refund Policy |
We provide a 100% Service Satisfaction Guarantee. If we fail to provide the agreed upon services in a timely fashion, we'll refund your monthly fees in full for that month - plain and simple.
close
Up Front Pricing |
The fees listed are the fees paid. See what Ovation has to offer.
close
Identity Optimization
The Identity Optimization Program addresses the need for today's consumer to take proactive steps in order to minimize damages and reduce, or even eliminate the chances of being victimized by ID fraud. Learn more...
close
Sign Up Today
•Consumer Credit Repair Programs
•No Startup Cost
•No Retainer Fee
•Cancel Anytime
•Full Refund Policy
•Programs Starting at $3495
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"Thank you for all the work you did in improving my credit. My husband and I have now been approved for a mortgage loan and will be moving into our new home at the end of this month. My credit score began in the 600's and is now in the high 700's to low 800's. Thank you very much!!"
-D.W.
-Ovation Client
JUMP START - No payments or fees for up to 30 days. Learn more...
Ovation Credit Repair Programs
Credit scores affect every aspect of our financial lives - qualification for loans, the interest rates we pay, employment opportunities, and even insurance premiums. Unfortunately, credit reports commonly include errors, misstatements, incomplete information and misleading information. In fact, recent studies show that up to 79% of credit reports contain some type of error.
NOTE: OVATION IS ONE OF THE WELL-RESPECTED "CREDIT DOCTORS" IN THE U.S.
Repairing your credit profile is one of the most important financial decisions you can make. Ovation is here to help you achieve your optimal credit profile. We make the credit repair process convenient, personal, and effective. Our programs are based upon extensive research of consumer credit laws, credit bureau /creditor tactics and persistence for our clients. We've helped tens of thousands of Americans correct their credit profiles and we're ready to help you too.
We Get Results.
We have successfully helped remove or improve questionable items on credit reports including:
•Late Payments •Judgments/Liens
•Collections •Repossessions
•Charge Offs •Foreclosures
•Bankruptcies •Identity Theft/Fraud
•Inquiries •Incorrect Personal Information
Simple, Effective and Fast!
At Ovation, we understand that everyone's credit report and financial situation are unique, which is why we offer comprehensive, personalized, and proven credit repair programs that get results. SIGN UP is easy online or over the telephone and only takes a few minutes. In a hurry? Add FAST TRACK to your program and we will expedite your case in every possible way throughout the process.
How Does the Credit Repair Process Work?
View our online video and learn:
* What to expect in the credit repair process.
* How the process works.
* What the cost is to you.
* How much time the process takes.
Visit the Ovation Education Center
At Ovation, we believe one of the most effective tools in disputing inaccuracies on your credit report is knowledge. Our online Education Center offers free publications, current credit repair information, and tips on how to maintain a stronger credit profile, repair bad credit and improve credit scores.
Become a client today and experience LIFE WITH BETTER CREDIT!
More...
Common Questions
•Is credit repair legal?
•Do you bill in advance for service?
•How long does credit repair take?
•Can I repair my own credit report?
•Why should I choose Ovation?
More...
Get Started Now!
sign up today!
AFFILIATES BBBOnline Reliability Program Privacy BBBOnline
privacy policy • terms • site map • referrals • important disclosures CONFIRM
credit repair education center | credit report repair | credit news | understanding credit | credit repair scams
©2004-2007 Ovation, Inc. All Rights Reserved
Absolutely!
It is your legal right to dispute items on your credit report. Ovation exercises your legal rights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable Federal statutes.
Ovation Inc. helps consumers with credit reports that are inaccurate, misleading, incomplete or contain incorrect information. If your credit report is 100% completely accurate and correct, Ovation can not offer any services that would improve your credit profile. Be advised that any company that claims it can improve a 100% accurate and correct credit profile may be violating Federal Statutes.
We recommend that you stay away from services that recommend that you attempt to obtain a new/alternate social security number, attempt to create a consumer credit profile under a EIN, or create "fake" credit profiles by intentionally reporting false data. These tactics can be illegal and/or unethical and, if caught, can result in significant personal liability.
No! Ovation Does Not Charge in Advance For Credit Repair Services.
In compliance with the Credit Repair Organizations Act, we only charge for credit repair services after they have been fully rendered. Your 'First Payment' to Ovation is made after we have set up your case, reviewed your disputing options with you, and mailed your first round of dispute letters (or at the completion of the first 30 days of service). Each monthly payment thereafter covers the services fully rendered during the previous month.
Our clients typically start seeing results in 45-60 days.
Because everyone's case is different, some cases are completed in that time, and others can take 6 months or longer. It really depends on the type and number of items that need to be addressed in the credit profile. Successfully repairing credit requires persistence, patience and experience.
NOTE: OVATION IS ACCOMPLISHMENT ORIENTED.
This is where Ovation's expertise saves you valuable time. To effectively dispute incorrect information on your credit report, the key is knowing the 'valid disputes' and understanding the methods used by the credit bureaus in order to submit personalized disputes that meet their requirements and warrant a timely response. In addition, we offer a valuable time-saving service, known as the Fast Track Program, which can be applied to any of our custom programs to expedite your credit report repair process.
Depending on your time, patience, perseverance, and complexity of your case, you can successfully dispute inaccurate credit report items on your own.
However, credit bureaus' strategies and tactics make the process often time-consuming, overly-burdensome and ineffective for the consumer. Disputing items is not difficult; getting results is.
We Get Results.
Ovation provides the following advantages:
* Our programs were designed by attorneys with a complete understanding of your legal rights under applicable Federal Statutes.
* We have a phenomenal record with the Better Business Bureau.
* We stay current on consumer law as it pertains to credit repair and credit bureaus to make sure that our clients receive the best possible results.
* Your privacy and confidentiality (especially in regards to your social security number, credit card information and credit reports) are protected by state-of-the-art encryption technology.
* Our Customer Service Guarantee is effective from day one. You do not have to be a client for any particular amount of time before you are protected by our guarantee. Compare that to other firms that often require you to be a client for 12 months before their guarantee protects you.
JUMP START
Ovation understands how important it is to improve your credit and we are prepared to 'JUMP START' the process. Sign up now and we will immediately get you into our system, assign you a case advisor and prepare your case for disputing. All of this is done before you spend a penny!
First Payment
Your first payment includes a customized case setup, assignment to your personal case advisor, a comprehensive case review, and preparation and mailing of the first round of your custom dispute letters. Although billing information is collected and authorized at sign up, your credit card is not actually charged until after your first round of dispute letters are prepared to be mailed out, or at the end of the first month, whichever comes first.
Each Additional Month
Your program's monthly charges will begin 30 days after the first payment is charged. You can cancel at anytime without any penalty.
Ovation charges for services only after they have been rendered. We never charge in advance for service.
toll-free (866) 639-3426
Se habla español
BBBOnLine Reliability Participation
Limitless Deletions |
For as long as you retain our services, Ovation will dispute any item within your program until you receive the results desired. Learn more about our programs...
close
Same Day Service |
When you add our FASTTRACK service to your program, you experience a premium level of service with same day disputing.
close
Full Refund Policy |
We provide a 100% Service Satisfaction Guarantee. If we fail to provide the agreed upon services in a timely fashion, we'll refund your monthly fees in full for that month - plain and simple.
close
Up Front Pricing |
The fees listed are the fees paid. See what Ovation has to offer.
close
Identity Optimization
The Identity Optimization Program addresses the need for today's consumer to take proactive steps in order to minimize damages and reduce, or even eliminate the chances of being victimized by ID fraud. Learn more...
close
Sign Up Today
•Consumer Credit Repair Programs
•No Startup Cost
•No Retainer Fee
•Cancel Anytime
•Full Refund Policy
•Programs Starting at $3495
Get Started Now!
Program Choices
About Us
Why Ovation?
Save Money!
Education Center
Video Center
FTC & Credit Repair
FAQs
Contact Us
Proven Results
Login
Search ovationlaw.com
BookMark This Site!
"Thank you for all the work you did in improving my credit. My husband and I have now been approved for a mortgage loan and will be moving into our new home at the end of this month. My credit score began in the 600's and is now in the high 700's to low 800's. Thank you very much!!"
-D.W.
-Ovation Client
JUMP START - No payments or fees for up to 30 days. Learn more...
Ovation Credit Repair Programs
Credit scores affect every aspect of our financial lives - qualification for loans, the interest rates we pay, employment opportunities, and even insurance premiums. Unfortunately, credit reports commonly include errors, misstatements, incomplete information and misleading information. In fact, recent studies show that up to 79% of credit reports contain some type of error.
NOTE: OVATION IS ONE OF THE WELL-RESPECTED "CREDIT DOCTORS" IN THE U.S.
Repairing your credit profile is one of the most important financial decisions you can make. Ovation is here to help you achieve your optimal credit profile. We make the credit repair process convenient, personal, and effective. Our programs are based upon extensive research of consumer credit laws, credit bureau /creditor tactics and persistence for our clients. We've helped tens of thousands of Americans correct their credit profiles and we're ready to help you too.
We Get Results.
We have successfully helped remove or improve questionable items on credit reports including:
•Late Payments •Judgments/Liens
•Collections •Repossessions
•Charge Offs •Foreclosures
•Bankruptcies •Identity Theft/Fraud
•Inquiries •Incorrect Personal Information
Simple, Effective and Fast!
At Ovation, we understand that everyone's credit report and financial situation are unique, which is why we offer comprehensive, personalized, and proven credit repair programs that get results. SIGN UP is easy online or over the telephone and only takes a few minutes. In a hurry? Add FAST TRACK to your program and we will expedite your case in every possible way throughout the process.
How Does the Credit Repair Process Work?
View our online video and learn:
* What to expect in the credit repair process.
* How the process works.
* What the cost is to you.
* How much time the process takes.
Visit the Ovation Education Center
At Ovation, we believe one of the most effective tools in disputing inaccuracies on your credit report is knowledge. Our online Education Center offers free publications, current credit repair information, and tips on how to maintain a stronger credit profile, repair bad credit and improve credit scores.
Become a client today and experience LIFE WITH BETTER CREDIT!
More...
Common Questions
•Is credit repair legal?
•Do you bill in advance for service?
•How long does credit repair take?
•Can I repair my own credit report?
•Why should I choose Ovation?
More...
Get Started Now!
sign up today!
AFFILIATES BBBOnline Reliability Program Privacy BBBOnline
privacy policy • terms • site map • referrals • important disclosures CONFIRM
credit repair education center | credit report repair | credit news | understanding credit | credit repair scams
©2004-2007 Ovation, Inc. All Rights Reserved
Absolutely!
It is your legal right to dispute items on your credit report. Ovation exercises your legal rights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable Federal statutes.
Ovation Inc. helps consumers with credit reports that are inaccurate, misleading, incomplete or contain incorrect information. If your credit report is 100% completely accurate and correct, Ovation can not offer any services that would improve your credit profile. Be advised that any company that claims it can improve a 100% accurate and correct credit profile may be violating Federal Statutes.
We recommend that you stay away from services that recommend that you attempt to obtain a new/alternate social security number, attempt to create a consumer credit profile under a EIN, or create "fake" credit profiles by intentionally reporting false data. These tactics can be illegal and/or unethical and, if caught, can result in significant personal liability.
No! Ovation Does Not Charge in Advance For Credit Repair Services.
In compliance with the Credit Repair Organizations Act, we only charge for credit repair services after they have been fully rendered. Your 'First Payment' to Ovation is made after we have set up your case, reviewed your disputing options with you, and mailed your first round of dispute letters (or at the completion of the first 30 days of service). Each monthly payment thereafter covers the services fully rendered during the previous month.
Our clients typically start seeing results in 45-60 days.
Because everyone's case is different, some cases are completed in that time, and others can take 6 months or longer. It really depends on the type and number of items that need to be addressed in the credit profile. Successfully repairing credit requires persistence, patience and experience.
NOTE: OVATION IS ACCOMPLISHMENT ORIENTED.
This is where Ovation's expertise saves you valuable time. To effectively dispute incorrect information on your credit report, the key is knowing the 'valid disputes' and understanding the methods used by the credit bureaus in order to submit personalized disputes that meet their requirements and warrant a timely response. In addition, we offer a valuable time-saving service, known as the Fast Track Program, which can be applied to any of our custom programs to expedite your credit report repair process.
Depending on your time, patience, perseverance, and complexity of your case, you can successfully dispute inaccurate credit report items on your own.
However, credit bureaus' strategies and tactics make the process often time-consuming, overly-burdensome and ineffective for the consumer. Disputing items is not difficult; getting results is.
We Get Results.
Ovation provides the following advantages:
* Our programs were designed by attorneys with a complete understanding of your legal rights under applicable Federal Statutes.
* We have a phenomenal record with the Better Business Bureau.
* We stay current on consumer law as it pertains to credit repair and credit bureaus to make sure that our clients receive the best possible results.
* Your privacy and confidentiality (especially in regards to your social security number, credit card information and credit reports) are protected by state-of-the-art encryption technology.
* Our Customer Service Guarantee is effective from day one. You do not have to be a client for any particular amount of time before you are protected by our guarantee. Compare that to other firms that often require you to be a client for 12 months before their guarantee protects you.
JUMP START
Ovation understands how important it is to improve your credit and we are prepared to 'JUMP START' the process. Sign up now and we will immediately get you into our system, assign you a case advisor and prepare your case for disputing. All of this is done before you spend a penny!
First Payment
Your first payment includes a customized case setup, assignment to your personal case advisor, a comprehensive case review, and preparation and mailing of the first round of your custom dispute letters. Although billing information is collected and authorized at sign up, your credit card is not actually charged until after your first round of dispute letters are prepared to be mailed out, or at the end of the first month, whichever comes first.
Each Additional Month
Your program's monthly charges will begin 30 days after the first payment is charged. You can cancel at anytime without any penalty.
Ovation charges for services only after they have been rendered. We never charge in advance for service.
Sunday, July 6, 2008
STATES TARGET ' WAGERING ON DEATH '
Chicago Tribune
July 1, 2008
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States target 'wagering on death'
Lawmakers banning big-bucks insurance policies, which some contend prey on America's elderly
By Kirsten Scharnberg | Chicago Tribune correspondent
July 1, 2008
TOPEKA, Kan. — Lawmakers here recently passed legislation to outlaw a practice that critics say preys on America's elderly: an insurance transaction in which investors persuade seniors to purchase high-dollar life insurance policies and then transfer a significant portion of the death benefits to strangers.
Known as stranger-originated life insurance, or STOLI, the practice has become prevalent nationwide, particularly as Baby Boomers inch toward retirement and insurance options are aggressively marketed to an aging U.S. populace.
"It's becoming more and more of a problem," said Gary Sanders, senior counsel for the National Association of Insurance and Financial Advisors. "And it's ... being done for bigger and bigger dollar amounts."
NOTE: STOLI OR STRANGER-ORIGINATED LIFE INSURANCE IS BEING STUDIED WELL.
The essence of a STOLI transaction is this: An investor entices a consumer, almost always someone elderly, to take out a large life insurance policy, often in excess of $1 million. The investor frequently sweetens the deal by paying the premiums for the consumer. In exchange, the insured person agrees to sell the policy—making the investor the beneficiary—for an upfront, fast-cash cut of what will be the policy's eventual death payout.
"The entire transaction is not what life insurance is supposed to be about," said Sandy Praeger, the insurance commissioner for Kansas, who fought to get STOLI banned in her state.
"In a traditional life insurance policy, the hope is that you will live as long as possible and that your loved ones will eventually receive the payout from your policy. STOLI is the exact opposite—the hope is that you will die soon, and the beneficiaries will be total strangers," Praeger said.
NOTE: LIFE INSURANCE OFFERS DIFFERENT VARIETIES. A CLOSE STUDY OF ALL TYPES IS HIGHLY RECOMMENDED.
The insurance industry, one of the most powerful lobbying groups in the nation, has complained bitterly about STOLI, alleging it is blatant fraud for a consumer to buy a policy with the express goal of turning a profit by selling the policy to an outside investor.
State legislators have agreed in large numbers, saying that such "wagering on death," as the practice has become known, should be criminal.
Still legal in Illinois
Like Kansas, nearly two dozen states have either banned STOLI or are considering doing so. Iowa, Nebraska, Minnesota and Indiana began cracking down in the past year. Illinois is considering legislation that would restrict the practice.
Sanders said states with large elderly populations—Florida and Arizona, for example—have seen the majority of STOLI cases but that the practice is spreading.
Critics say STOLI not only violates the spirit of life insurance—financial protection for a consumer and his or her loved ones—but carries the potential for harm and abuse of the consumer.
CNN talk show host Larry King recently found himself in such a situation. He sued his insurance broker after selling off about $15 million in life insurance policies for cash payouts of about $1.4 million. King charged that he hadn't been informed of the tax ramifications or the fact that the move would reduce his ability to purchase more life insurance.
The selling off of life insurance policies is not new. An entire industry—known as the viatical or life-settlement industry—emerged in the late 1980s in response to the AIDS crisis, when thousands of people found themselves suddenly too sick to work and desperate for cash.
Because so many of those people were gay men without dependents, a market was born in which individuals could sell their death benefits to investors for immediate cash. For example, someone with a $200,000 life insurance policy might sell the policy to a life insurance settlement company for $150,000; the dying person got the money and the company profited $50,000 as soon as the insured died.
In contrast to STOLI, that kind of selling of policies largely has remained acceptable, and terminally ill consumers, as well as those who are in need of quick cash, keep that industry doing billions of dollars of business each year.
Even the life-settlement industry has been critical of STOLI. Doug Head, executive director of the Life Insurance Settlement Association, likened the practice to "a kid outside the 7-Eleven getting a bum to go in and buy booze for him."
Yet Head also cautioned against many of the legislative steps that some states are taking. He worries about blanket bans on selling life insurance policies for five years after they are purchased, a move he believes takes too much control away from consumers who might be selling their policies for valid reasons.
STOLI's upside
As much as the insurance industry has painted STOLI as a predatory practice, many consumers have enjoyed their windfall. Those who rake in big profits for doing next to nothing other than signing up for big insurance policies have frequently been happy with the deals they've cut, Head said.
Head questioned how prevalent STOLI has become, indicating that the insurance industry wants states to ban it because it cuts into profits by reducing the standard number of lapsed policies.
"The idea that people are jumping out of dark alleys and forcing old ladies into life insurance policies is ludicrous," he said.
kscharnberg@tribune.com
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States target 'wagering on death'
Lawmakers banning big-bucks insurance policies, which some contend prey on America's elderly
By Kirsten Scharnberg | Chicago Tribune correspondent
July 1, 2008
TOPEKA, Kan. — Lawmakers here recently passed legislation to outlaw a practice that critics say preys on America's elderly: an insurance transaction in which investors persuade seniors to purchase high-dollar life insurance policies and then transfer a significant portion of the death benefits to strangers.
Known as stranger-originated life insurance, or STOLI, the practice has become prevalent nationwide, particularly as Baby Boomers inch toward retirement and insurance options are aggressively marketed to an aging U.S. populace.
"It's becoming more and more of a problem," said Gary Sanders, senior counsel for the National Association of Insurance and Financial Advisors. "And it's ... being done for bigger and bigger dollar amounts."
NOTE: STOLI OR STRANGER-ORIGINATED LIFE INSURANCE IS BEING STUDIED WELL.
The essence of a STOLI transaction is this: An investor entices a consumer, almost always someone elderly, to take out a large life insurance policy, often in excess of $1 million. The investor frequently sweetens the deal by paying the premiums for the consumer. In exchange, the insured person agrees to sell the policy—making the investor the beneficiary—for an upfront, fast-cash cut of what will be the policy's eventual death payout.
"The entire transaction is not what life insurance is supposed to be about," said Sandy Praeger, the insurance commissioner for Kansas, who fought to get STOLI banned in her state.
"In a traditional life insurance policy, the hope is that you will live as long as possible and that your loved ones will eventually receive the payout from your policy. STOLI is the exact opposite—the hope is that you will die soon, and the beneficiaries will be total strangers," Praeger said.
NOTE: LIFE INSURANCE OFFERS DIFFERENT VARIETIES. A CLOSE STUDY OF ALL TYPES IS HIGHLY RECOMMENDED.
The insurance industry, one of the most powerful lobbying groups in the nation, has complained bitterly about STOLI, alleging it is blatant fraud for a consumer to buy a policy with the express goal of turning a profit by selling the policy to an outside investor.
State legislators have agreed in large numbers, saying that such "wagering on death," as the practice has become known, should be criminal.
Still legal in Illinois
Like Kansas, nearly two dozen states have either banned STOLI or are considering doing so. Iowa, Nebraska, Minnesota and Indiana began cracking down in the past year. Illinois is considering legislation that would restrict the practice.
Sanders said states with large elderly populations—Florida and Arizona, for example—have seen the majority of STOLI cases but that the practice is spreading.
Critics say STOLI not only violates the spirit of life insurance—financial protection for a consumer and his or her loved ones—but carries the potential for harm and abuse of the consumer.
CNN talk show host Larry King recently found himself in such a situation. He sued his insurance broker after selling off about $15 million in life insurance policies for cash payouts of about $1.4 million. King charged that he hadn't been informed of the tax ramifications or the fact that the move would reduce his ability to purchase more life insurance.
The selling off of life insurance policies is not new. An entire industry—known as the viatical or life-settlement industry—emerged in the late 1980s in response to the AIDS crisis, when thousands of people found themselves suddenly too sick to work and desperate for cash.
Because so many of those people were gay men without dependents, a market was born in which individuals could sell their death benefits to investors for immediate cash. For example, someone with a $200,000 life insurance policy might sell the policy to a life insurance settlement company for $150,000; the dying person got the money and the company profited $50,000 as soon as the insured died.
In contrast to STOLI, that kind of selling of policies largely has remained acceptable, and terminally ill consumers, as well as those who are in need of quick cash, keep that industry doing billions of dollars of business each year.
Even the life-settlement industry has been critical of STOLI. Doug Head, executive director of the Life Insurance Settlement Association, likened the practice to "a kid outside the 7-Eleven getting a bum to go in and buy booze for him."
Yet Head also cautioned against many of the legislative steps that some states are taking. He worries about blanket bans on selling life insurance policies for five years after they are purchased, a move he believes takes too much control away from consumers who might be selling their policies for valid reasons.
STOLI's upside
As much as the insurance industry has painted STOLI as a predatory practice, many consumers have enjoyed their windfall. Those who rake in big profits for doing next to nothing other than signing up for big insurance policies have frequently been happy with the deals they've cut, Head said.
Head questioned how prevalent STOLI has become, indicating that the insurance industry wants states to ban it because it cuts into profits by reducing the standard number of lapsed policies.
"The idea that people are jumping out of dark alleys and forcing old ladies into life insurance policies is ludicrous," he said.
kscharnberg@tribune.com
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Credit Repair: Credit Cards
By: Project Stocks Wednesday, June 25, 2008 2:14 AM
Sectors: Personal Finance
Send Email Email View Comments Comments (0) Post Comments Post Comment
Bookmark It
by William Blake
Does your less than perfect credit history concern you? Then you should allow bad credit cards to help you make your credit rating better. For both individuals looking to make purchases and business establishments trying to keep sales strong, using bad credit cards is the most preferred option since it helps both groups keep their credit scores high. Those identified as high-risk credit card users are also aided by bad credit cards, since they work just like normal cards. Anyone who uses credit cards and whose current credit score is 550 or below should consider using bad credit cards.
Taking a Step
NOTE: NON AVAILABILITY OF NORMAL CREDIT CARD, THERE IS A PRE PAID DEBIT CARD.
The non-availability of normal credit cards for bad credit owners leads them to the options like prepaid debit card, First Premiere Bank Cards and other secured credit cards. One can avail the bad credit cards in the same manner as a normal credit card. The fact that the bad credit cards have comparatively higher rate of interest and lower limits of credit, should not avert you from buying them. It is advisable to use these cards effectively, or you could land up in a worst situation.
Analyzing the Myths
One of several false beliefs regarding bad credit cards is that they are not a good financial backup. This has changed more recently, however, since bad credit cards do not always appear exclusively with extremely high interest rates. For this reason, they should not be considered bad financial tools. Owing to the appearance of more and more companies offering bad credit cards, individuals looking to apply for a line of credit can select the card that best matches their needs. In order to do this, the customer must first do their homework and analyze such essentials as yearly fees, financing fees, credit necessities, opening offers, accessibility of online banking, and other applicable information about the credit card offer.
Enjoying the Benefits
Taking all factors into consideration, it can be said with certainty that any disadvantages presented by bad credit cards do not eclipse the financial benefits. An individual with a low or no credit score has much to gain using bad credit cards, like:
-First and foremost, you will be aided in your efforts to raise your credit score.
-Besides that, by putting yourself into a situation where monthly payments are easier to make on time, you will eventually be able to call yourself a low risk candidate for lenders to consider.
- This will secure your future chances of obtaining a loan. For this, all you have to do is to use the bad credit cards for every small purchase for one or two years. By doing so, you can rebuild the credit rating and impress the creditors with a good credit score.
The conclusion of above discussion is that the bad credit cards are the best friends for the people with a bad credit history. Thus, you can see that even a person with bad credit is capable of rebuilding the credit and improve the future prospective for getting a loan.
About the Author:
Are you struggling to cover the payments on your credit cards and other debt every month? If so, debt consolidation may be a good option. Visit the Inside Debt Consolidation website to sign up for your free debt consolidation e-course.
Your Rating: Current Rating:
More Articles by: Project Stocks
More Articles on: Personal Finance
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* Weather clouds future of biofuels
Jul 01, 2008 11:38 PM
* Physicist: Use nukes against asteroids
Jul 01, 2008 11:00 PM
* Security company plays with spam
Jul 01, 2008 10:28 PM
* ABC establishes 'Lost' book club
Jul 01, 2008 09:55 PM
* Got Gold Report Comments on Proposed SEC Short Sale Rule S7-08-08
Jul 01, 2008 09:36 PM
Related Press Releases
* Mötley Crüe's "Saints of Los Angeles" This Week's Highest Debut on the Billboard Chart in Top Five
Jul 01, 2008 11:48 PM
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Jul 01, 2008 11:04 PM
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* Chesapeake Announces 8 New Shales Plays
* Atwood Oceanics - a Beautiful Breakout
* Natural Gas 75% Gain Speeds Horizontal Drilling at Devon Energy , Range Resources (RRC)
* Best Performing Stocks the past Month
Releated SEC Filings
* Form 4 ALMON WILLIAM J For: Jun 30 (10K)
Jul 01, 2008 10:01 PM
* Form 4/A ALMON WILLIAM J For: Jun 02 (10K)
Jul 01, 2008 10:01 PM
* Form 4 Trahanas Philip Peter For: Jun 27 (10K)
Jul 01, 2008 09:54 PM
* Form 4 SYS For: Jun 27 Filed by: LAKE EDWARD M (10K)
Jul 01, 2008 09:52 PM
* Form 4 FINK MICHAEL W For: Jun 27 (10K)
Jul 01, 2008 09:52 PM
Loading...
Credit Repair: Credit Cards
By: Project Stocks Wednesday, June 25, 2008 2:14 AM
Sectors: Personal Finance
Send Email Email View Comments Comments (0) Post Comments Post Comment
Bookmark It
by William Blake
Does your less than perfect credit history concern you? Then you should allow bad credit cards to help you make your credit rating better. For both individuals looking to make purchases and business establishments trying to keep sales strong, using bad credit cards is the most preferred option since it helps both groups keep their credit scores high. Those identified as high-risk credit card users are also aided by bad credit cards, since they work just like normal cards. Anyone who uses credit cards and whose current credit score is 550 or below should consider using bad credit cards.
Taking a Step
NOTE: NON AVAILABILITY OF NORMAL CREDIT CARD, THERE IS A PRE PAID DEBIT CARD.
The non-availability of normal credit cards for bad credit owners leads them to the options like prepaid debit card, First Premiere Bank Cards and other secured credit cards. One can avail the bad credit cards in the same manner as a normal credit card. The fact that the bad credit cards have comparatively higher rate of interest and lower limits of credit, should not avert you from buying them. It is advisable to use these cards effectively, or you could land up in a worst situation.
Analyzing the Myths
One of several false beliefs regarding bad credit cards is that they are not a good financial backup. This has changed more recently, however, since bad credit cards do not always appear exclusively with extremely high interest rates. For this reason, they should not be considered bad financial tools. Owing to the appearance of more and more companies offering bad credit cards, individuals looking to apply for a line of credit can select the card that best matches their needs. In order to do this, the customer must first do their homework and analyze such essentials as yearly fees, financing fees, credit necessities, opening offers, accessibility of online banking, and other applicable information about the credit card offer.
Enjoying the Benefits
Taking all factors into consideration, it can be said with certainty that any disadvantages presented by bad credit cards do not eclipse the financial benefits. An individual with a low or no credit score has much to gain using bad credit cards, like:
-First and foremost, you will be aided in your efforts to raise your credit score.
-Besides that, by putting yourself into a situation where monthly payments are easier to make on time, you will eventually be able to call yourself a low risk candidate for lenders to consider.
- This will secure your future chances of obtaining a loan. For this, all you have to do is to use the bad credit cards for every small purchase for one or two years. By doing so, you can rebuild the credit rating and impress the creditors with a good credit score.
The conclusion of above discussion is that the bad credit cards are the best friends for the people with a bad credit history. Thus, you can see that even a person with bad credit is capable of rebuilding the credit and improve the future prospective for getting a loan.
About the Author:
Are you struggling to cover the payments on your credit cards and other debt every month? If so, debt consolidation may be a good option. Visit the Inside Debt Consolidation website to sign up for your free debt consolidation e-course.
Your Rating: Current Rating:
More Articles by: Project Stocks
More Articles on: Personal Finance
Home | Login |Research | Earnings | Scans | Chat Rooms | Charts | Submit Article | Join Blog Network | Contributors | Subscribe to RSS
copryright 2008 all rights reserved
Fundamental data is provided by Zacks Investment Research, market data is provided by AlphaTrade. , and Commentary and Press Releases provided by Quotemedia
Saturday, July 5, 2008
7 SIMPLE STRATEGIES FOR GETTING MORTGAGE QUALIFIED IN A TOUGH ECONOMY
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7 Simple Strategies for Getting Mortgage Qualified in a Tough Economy
Thanks to the mortgage crisis lenders have made it much more difficult to get approved for financing. Here are 7 quick and easy strategies that will help you get approved for a home loan even if you've been declined in the past.
Bohemia, NY (PRWEB) July 1, 2008 -- Whether you're stuck in an adjustable rate mortgage, wanting to buy a home at today's discounted prices, or just wanting to consolidate some debt, you'd be much better off preparing yourself well in advance of applying for a home loan.
Score more Credit Restoration (CreditScoringSecretsExposed.com) makes regular inquiries into the challenges our clients have faced when applying for a home loan to help you avoid the same mistakes they've made.
There are 4 basic variables which determine whether or not you get approved for a home loan and at what rate. They are:
* Income
* Credit history
* Collateral (your home)
* Ratio of loan size to value of your home
The following 7 strategies will increase your odds of approval and significantly lower your qualifying interest rate.
NOTE: 7 IMPORTANT STEPS TO CONSIDER IN CREDIT REPAIR..
1. Maximize Your Income Statements
Most lenders will require that you disclose your income from the previous two years and use this income to qualify you for a mortgage. They will ask for W-2 forms, tax returns, or bank statements to verify your income. The lender will then apply a formula to the income to determine your ability to repay the loan. A common requirement is that the mortgage payment cannot be greater than 28 percent of the borrower's gross monthly income, and the mortgage payment plus all other monthly obligations cannot exceed 36 percent of the gross monthly income (also known as Debt to Income Ratio or DTI). FHA allows higher ratios, and there are always exceptions to the guidelines.
Be sure to have your accountant review your monthly tax withholdings on your monthly pay stub. If you are getting more than $1,000.00 back when you file your taxes you're probably skewing your debt to income ratios which may decrease your chances of qualifying for a loan.
2. Lower Your Debts
Paying down debts lowers your debt to income ratio and can dramatically improve your credit score. Pay down your cards with the highest interest rates and pay down any installment loans so that you have less than 4 payments left whenever possible. Most lenders will ignore installment loans with less than 4 payments left.
3. Investigate Your Insurance Policy
Insurance agencies are quick to undercut one another to earn your business. Send your home owners policy out to at least 3 different agencies to get a quote. This one technique can save you several hundred dollars a year in lower premiums which in turn also helps improve your debt ratio.
4. Call Your Creditors
Most lenders will give you a lower interest rate assuming you've been a good customer who has made your payments on time. A quick call to their customer service department can lower your interest rate and save you hundreds of dollars a year, not to mention improve your monthly debt ratios.
5. Make Sure You Have a Rainy Day Fund
Most lenders require you to have anywhere from 2 - 6 months of reserves to qualify for a loan. Calculate your approximate mortgage payment to include taxes and insurance and that equals the amount required for 1 month's reserve. The minimum most lenders require is 2 months reserves. If you don't have on e already, open a savings account and place or save the equivalent of 2 months reserves at least 30 days before applying for a loan. By the time your loan is approved you'll have the required 60 days "seasoning".
6. Correct Past Credit Problems
Your credit score is the single biggest determining factor of your interest rate when applying for a loan or credit. A small increase in your credit score can save you literally hundreds of thousands of dollars. Your credit score is also much more easily influenced than any other criteria. For example, it's easier to remove negative items from your credit report than it is to get a job that pays you twice what you're making now.
NOTE: RECENT LAW PASSED ON BEHALF OF CREDIT BUREAUS TO PROVIDE ONE FREE CREDIT REPORT A YEAR.
The first thing you need to do is take a look at your credit report and see what the lender is going to see. While there are dozens of sites where you can see your credit report, there are only 2 sites you should seriously consider. Thanks to a recent law passed on your behalf the credit bureaus are required to provide you with one free credit report a year. You can access this credit report through Annualcreditreport.com
Note: I would not recommend purchasing the upgrade to see your scores. The scores provided are not true FICO scores and have no relevance to your lending qualification.
There is only one site you can purchase and see your actual FICO scores for all 3 bureaus. These scores are the same a lender would see when qualifying you for a loan. You can obtain your FICO scores through MyFico.com The best part is that this inquiry will not adversely affect your credit score. The only inquiries that adversely affect your score are when a lender pulls your credit for the purpose of qualifying you for a loan or credit line.
When shopping for a loan you can also use your myfico.com credit report to get qualified if it's no older than 90 days. This will reduce the number of times creditors will pull your score, thus dragging it down.
Your credit score is a major determining factor of your interest rate. It's a score between 300 - 850 which predicts the probability you'll default 90 days or more on your loan. The higher your score is, the less risk to your lender. Less risk means a lower rate for you.
If you note inaccuracies, such as creditors not reporting all the information on your account, or you see excessive inquiries you didn't authorize, or similar items which may be causing your score to drop, try using a reputable credit repair company to dispute the inaccurate items on your credit report. Contrary to what the credit bureaus would like you to believe, credit repair does increase your score and can work for 100% of people in most circumstances. This is, of course, provided you are getting the best advice and have an experienced professional working on your case.
Be realistic about your expectations. A hit-or-miss aspect exists in credit repair, because credit repair relies not only on the strategies of the person attempting to repair the credit, but also on the effectiveness or ineffectiveness of the creditors and credit bureaus in adhering to the laws.
Sometimes you want the credit bureaus and to follow the law, sometimes you don't- it all depends on your particular situation.
Credit repair will not help if you are currently missing payments or do not have the money to settle large unpaid collections or liens.
When researching a potential company to represent you, be sure to ask for testimonials and a written performance based guarantee. You should be paying for results, not the passing of time.
Avoid anyone who promises to delete 100% of your negative items or tries to sell you additional trade lines in the form an authorized user account.
Be sure to get your agreement in writing and always pay by credit card. This way, your merchant can protect you if the credit repair company turns out to be dishonest or ineffective.
7. Landscape and Deep Clean
An appraiser's job is to estimate the value of your home. They do that by comparing your home to other homes similar to yours that have recently sold within a reasonable distance to your own. You can influence the value of your home by making sure it's in the best condition possible before the appraiser comes out to take his pictures. You want the appraiser comparing your house to the nicest homes possible. A dilapidated car in the drive way is going to make that impossible.
Make sure your landscaping is neatly manicured. Make sure the roof is in good condition and there are no visible repairs necessary. Clean your house from top to bottom. It may even be worth spending a hundred bucks on a cleaning service when you consider the difference in your home's perceived value may be several thousand dollars higher. Sometimes the loan to value can be just a few thousand dollars from changing from a higher rate to a lower rate.
While it may be more challenging to get approved for a home loan, it's not impossible, especially if you take the time to prepare.
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PRWeb, a leader in online news and press release distribution, has been used by more than 40,000 organizations of all sizes to increase the visibility of their news, improve their search engine rankings and drive traffic to their Web site.
Close Move
All Press Releases for July 1, 2008 Subscribe to this News Feed
7 Simple Strategies for Getting Mortgage Qualified in a Tough Economy
Thanks to the mortgage crisis lenders have made it much more difficult to get approved for financing. Here are 7 quick and easy strategies that will help you get approved for a home loan even if you've been declined in the past.
Bohemia, NY (PRWEB) July 1, 2008 -- Whether you're stuck in an adjustable rate mortgage, wanting to buy a home at today's discounted prices, or just wanting to consolidate some debt, you'd be much better off preparing yourself well in advance of applying for a home loan.
Score more Credit Restoration (CreditScoringSecretsExposed.com) makes regular inquiries into the challenges our clients have faced when applying for a home loan to help you avoid the same mistakes they've made.
There are 4 basic variables which determine whether or not you get approved for a home loan and at what rate. They are:
* Income
* Credit history
* Collateral (your home)
* Ratio of loan size to value of your home
The following 7 strategies will increase your odds of approval and significantly lower your qualifying interest rate.
NOTE: 7 IMPORTANT STEPS TO CONSIDER IN CREDIT REPAIR..
1. Maximize Your Income Statements
Most lenders will require that you disclose your income from the previous two years and use this income to qualify you for a mortgage. They will ask for W-2 forms, tax returns, or bank statements to verify your income. The lender will then apply a formula to the income to determine your ability to repay the loan. A common requirement is that the mortgage payment cannot be greater than 28 percent of the borrower's gross monthly income, and the mortgage payment plus all other monthly obligations cannot exceed 36 percent of the gross monthly income (also known as Debt to Income Ratio or DTI). FHA allows higher ratios, and there are always exceptions to the guidelines.
Be sure to have your accountant review your monthly tax withholdings on your monthly pay stub. If you are getting more than $1,000.00 back when you file your taxes you're probably skewing your debt to income ratios which may decrease your chances of qualifying for a loan.
2. Lower Your Debts
Paying down debts lowers your debt to income ratio and can dramatically improve your credit score. Pay down your cards with the highest interest rates and pay down any installment loans so that you have less than 4 payments left whenever possible. Most lenders will ignore installment loans with less than 4 payments left.
3. Investigate Your Insurance Policy
Insurance agencies are quick to undercut one another to earn your business. Send your home owners policy out to at least 3 different agencies to get a quote. This one technique can save you several hundred dollars a year in lower premiums which in turn also helps improve your debt ratio.
4. Call Your Creditors
Most lenders will give you a lower interest rate assuming you've been a good customer who has made your payments on time. A quick call to their customer service department can lower your interest rate and save you hundreds of dollars a year, not to mention improve your monthly debt ratios.
5. Make Sure You Have a Rainy Day Fund
Most lenders require you to have anywhere from 2 - 6 months of reserves to qualify for a loan. Calculate your approximate mortgage payment to include taxes and insurance and that equals the amount required for 1 month's reserve. The minimum most lenders require is 2 months reserves. If you don't have on e already, open a savings account and place or save the equivalent of 2 months reserves at least 30 days before applying for a loan. By the time your loan is approved you'll have the required 60 days "seasoning".
6. Correct Past Credit Problems
Your credit score is the single biggest determining factor of your interest rate when applying for a loan or credit. A small increase in your credit score can save you literally hundreds of thousands of dollars. Your credit score is also much more easily influenced than any other criteria. For example, it's easier to remove negative items from your credit report than it is to get a job that pays you twice what you're making now.
NOTE: RECENT LAW PASSED ON BEHALF OF CREDIT BUREAUS TO PROVIDE ONE FREE CREDIT REPORT A YEAR.
The first thing you need to do is take a look at your credit report and see what the lender is going to see. While there are dozens of sites where you can see your credit report, there are only 2 sites you should seriously consider. Thanks to a recent law passed on your behalf the credit bureaus are required to provide you with one free credit report a year. You can access this credit report through Annualcreditreport.com
Note: I would not recommend purchasing the upgrade to see your scores. The scores provided are not true FICO scores and have no relevance to your lending qualification.
There is only one site you can purchase and see your actual FICO scores for all 3 bureaus. These scores are the same a lender would see when qualifying you for a loan. You can obtain your FICO scores through MyFico.com The best part is that this inquiry will not adversely affect your credit score. The only inquiries that adversely affect your score are when a lender pulls your credit for the purpose of qualifying you for a loan or credit line.
When shopping for a loan you can also use your myfico.com credit report to get qualified if it's no older than 90 days. This will reduce the number of times creditors will pull your score, thus dragging it down.
Your credit score is a major determining factor of your interest rate. It's a score between 300 - 850 which predicts the probability you'll default 90 days or more on your loan. The higher your score is, the less risk to your lender. Less risk means a lower rate for you.
If you note inaccuracies, such as creditors not reporting all the information on your account, or you see excessive inquiries you didn't authorize, or similar items which may be causing your score to drop, try using a reputable credit repair company to dispute the inaccurate items on your credit report. Contrary to what the credit bureaus would like you to believe, credit repair does increase your score and can work for 100% of people in most circumstances. This is, of course, provided you are getting the best advice and have an experienced professional working on your case.
Be realistic about your expectations. A hit-or-miss aspect exists in credit repair, because credit repair relies not only on the strategies of the person attempting to repair the credit, but also on the effectiveness or ineffectiveness of the creditors and credit bureaus in adhering to the laws.
Sometimes you want the credit bureaus and to follow the law, sometimes you don't- it all depends on your particular situation.
Credit repair will not help if you are currently missing payments or do not have the money to settle large unpaid collections or liens.
When researching a potential company to represent you, be sure to ask for testimonials and a written performance based guarantee. You should be paying for results, not the passing of time.
Avoid anyone who promises to delete 100% of your negative items or tries to sell you additional trade lines in the form an authorized user account.
Be sure to get your agreement in writing and always pay by credit card. This way, your merchant can protect you if the credit repair company turns out to be dishonest or ineffective.
7. Landscape and Deep Clean
An appraiser's job is to estimate the value of your home. They do that by comparing your home to other homes similar to yours that have recently sold within a reasonable distance to your own. You can influence the value of your home by making sure it's in the best condition possible before the appraiser comes out to take his pictures. You want the appraiser comparing your house to the nicest homes possible. A dilapidated car in the drive way is going to make that impossible.
Make sure your landscaping is neatly manicured. Make sure the roof is in good condition and there are no visible repairs necessary. Clean your house from top to bottom. It may even be worth spending a hundred bucks on a cleaning service when you consider the difference in your home's perceived value may be several thousand dollars higher. Sometimes the loan to value can be just a few thousand dollars from changing from a higher rate to a lower rate.
While it may be more challenging to get approved for a home loan, it's not impossible, especially if you take the time to prepare.
###
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Honesty can cost in auto policies
By Jim Sanders - jsanders@sacbee.com
Published 12:00 am PDT Monday, June 30, 2008
Story appeared in MAIN NEWS section, Page A1
Print | E-Mail | Comments (2) | |
Will Californians lie to save money?
Apparently.
New legislation takes aim at an honor system, of sorts, perhaps one of the few remaining in which millions of dollars are at stake.
The measure targets a process in which state law requires car insurance premiums to be based partly on motorists' estimates of how far they will drive each year.
Honesty can hurt – financially.
"I think it's ingrained, given the structure of the current system, to lie," said Michael Gunning of the Personal Insurance Federation of California, whose members write about half the state's auto insurance policies.
Assemblyman Jared Huffman, D-San Rafael, proposed the new measure, Assembly Bill 2800, to permit insurance companies to offer discounts to drivers who volunteer to have mileage verified.
NOTE: HUFFMAN CREATED THE ASSEMBLY BILL 2800.
Huffman said it makes no sense to reward dishonesty or lowballing, while offering no incentive to drive less.
"Ask yourself, what would most people do, given the opportunity to have a lower insurance rate by estimating lower miles than they actually drive?" Huffman said.
Sacramentans interviewed randomly Friday agreed.
"I think most people probably do skimp a little bit," said Derek Givens, 28.
"Hell, yeah, they do," said Jeremiah Collins, 25. "There's no way they wouldn't."
No current statistics exist, but a state study of 1998 mileage estimates found that 56 percent of motorists underestimated their travel – and nearly half of those lowballers erred by more than 6,000 miles.
AB 2800's voluntary program, though seemingly narrow in scope, teams environmental groups with insurance companies as part of a much broader, long-range strategy to cut miles driven and lower greenhouse gas emissions, a key state goal.
Ultimately, passage of AB 2800 could set the stage for battles over whether the state should allow insurers to require high-tech devices for tracking mileage and whether to encourage pay-as-you-go policies that charge drivers for each mile traveled.
Huffman said his bill does not address such issues and that state Insurance Commissioner Steve Poizner has wide-ranging latitude to represent consumer interests. But vehicles are pivotal in the state's fight against global warming, he said.
"We need to create incentives to drive less," Huffman said.
Californians own 26 million cars and trucks driven more than 330 billion miles a year, according to the state Air Resources Board.
"The threat that California faces from climate change is real, and a big part of that is transportation, which is something we all have control over in our day-to-day lives," said Lauren Navarro of the Environmental Defense Fund.
Opponents counter that the push for AB 2800 exaggerates insurers' woes and piggybacks onto environmental activism to achieve corporate gain.
"I think there's always sort of a credibility gap between the industry's claims and its actual performance," said Richard Holober of the Consumer Federation of California.
California regulations specifically ban insurers from requiring use of technological devices to record mileage. But firms have the right to require odometer readings when a policy is issued, and when it's renewed every six months or year, said Darrel Ng of the Department of Insurance.
Gunning disagreed that the regulations give firms clear authority.
"In fact, several times we asked for mileage verification tools, and the (insurance department) refused because it would be too 'burdensome' on the customer," Gunning's group said in a letter supporting AB 2800.
Besides confusion over legal limits, insurers say verification is not always practical because many policies are sold online, not every firm has ample staffing to handle a data crush, and stiff competition discourages imposition of cumbersome policies that might upset customers.
State Farm, AAA and Allstate insurance companies said they depend on policyholders, not odometers, when calculating mileage.
"We accept the customers' estimate," said Cynthia Harris of AAA. "So the bottom line is the customer has the final say."
AB 2800 would allow insurance companies to propose methods of verification for acceptance by Poizner, whose office has taken no position on the legislation but is studying the issue separately.
Huffman's bill awaits action in the Senate after passing the Assembly, 72-2. Gov. Arnold Schwarzenegger has taken no position.
Opponents contend the legislation is a thinly veiled push toward allowing insurance companies to require use of satellite technology – known as GPS – that can track not only how far you drive, but where and how aggressively.
"That's a huge invasion of privacy," Holober said. "It's nobody's business."
"I should not be required to give up my privacy in order to pay fair insurance rates," added Carmen Balber of Consumer Watchdog, an industry watchdog group.
NOTE: HUFFMAN IS A VERY RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
Huffman called such claims a "phantom issue."
"The notion that this will require installation of 'spyware' on your car is nonsensical," he said, adding that AB 2800 proposes a voluntary program in which the state, not insurers, would determine verification methods.
"If I thought that this bill was somehow anti-consumer, there's no way I'd be carrying it," Huffman said.
About the writer:
* Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.
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PapaDoyle at 5:26 AM PST Monday, June 30, 2008 wrote:
If insurance companys are allowed to track every mile you drive then we should be able to track ever...more
*
lpugh at 12:16 AM PST Monday, June 30, 2008 wrote:
Compares to pissing on a forest fire but paying to do so...more
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Honesty can cost in auto policies
By Jim Sanders - jsanders@sacbee.com
Published 12:00 am PDT Monday, June 30, 2008
Story appeared in MAIN NEWS section, Page A1
Print | E-Mail | Comments (2) | |
Will Californians lie to save money?
Apparently.
New legislation takes aim at an honor system, of sorts, perhaps one of the few remaining in which millions of dollars are at stake.
The measure targets a process in which state law requires car insurance premiums to be based partly on motorists' estimates of how far they will drive each year.
Honesty can hurt – financially.
"I think it's ingrained, given the structure of the current system, to lie," said Michael Gunning of the Personal Insurance Federation of California, whose members write about half the state's auto insurance policies.
Assemblyman Jared Huffman, D-San Rafael, proposed the new measure, Assembly Bill 2800, to permit insurance companies to offer discounts to drivers who volunteer to have mileage verified.
NOTE: HUFFMAN CREATED THE ASSEMBLY BILL 2800.
Huffman said it makes no sense to reward dishonesty or lowballing, while offering no incentive to drive less.
"Ask yourself, what would most people do, given the opportunity to have a lower insurance rate by estimating lower miles than they actually drive?" Huffman said.
Sacramentans interviewed randomly Friday agreed.
"I think most people probably do skimp a little bit," said Derek Givens, 28.
"Hell, yeah, they do," said Jeremiah Collins, 25. "There's no way they wouldn't."
No current statistics exist, but a state study of 1998 mileage estimates found that 56 percent of motorists underestimated their travel – and nearly half of those lowballers erred by more than 6,000 miles.
AB 2800's voluntary program, though seemingly narrow in scope, teams environmental groups with insurance companies as part of a much broader, long-range strategy to cut miles driven and lower greenhouse gas emissions, a key state goal.
Ultimately, passage of AB 2800 could set the stage for battles over whether the state should allow insurers to require high-tech devices for tracking mileage and whether to encourage pay-as-you-go policies that charge drivers for each mile traveled.
Huffman said his bill does not address such issues and that state Insurance Commissioner Steve Poizner has wide-ranging latitude to represent consumer interests. But vehicles are pivotal in the state's fight against global warming, he said.
"We need to create incentives to drive less," Huffman said.
Californians own 26 million cars and trucks driven more than 330 billion miles a year, according to the state Air Resources Board.
"The threat that California faces from climate change is real, and a big part of that is transportation, which is something we all have control over in our day-to-day lives," said Lauren Navarro of the Environmental Defense Fund.
Opponents counter that the push for AB 2800 exaggerates insurers' woes and piggybacks onto environmental activism to achieve corporate gain.
"I think there's always sort of a credibility gap between the industry's claims and its actual performance," said Richard Holober of the Consumer Federation of California.
California regulations specifically ban insurers from requiring use of technological devices to record mileage. But firms have the right to require odometer readings when a policy is issued, and when it's renewed every six months or year, said Darrel Ng of the Department of Insurance.
Gunning disagreed that the regulations give firms clear authority.
"In fact, several times we asked for mileage verification tools, and the (insurance department) refused because it would be too 'burdensome' on the customer," Gunning's group said in a letter supporting AB 2800.
Besides confusion over legal limits, insurers say verification is not always practical because many policies are sold online, not every firm has ample staffing to handle a data crush, and stiff competition discourages imposition of cumbersome policies that might upset customers.
State Farm, AAA and Allstate insurance companies said they depend on policyholders, not odometers, when calculating mileage.
"We accept the customers' estimate," said Cynthia Harris of AAA. "So the bottom line is the customer has the final say."
AB 2800 would allow insurance companies to propose methods of verification for acceptance by Poizner, whose office has taken no position on the legislation but is studying the issue separately.
Huffman's bill awaits action in the Senate after passing the Assembly, 72-2. Gov. Arnold Schwarzenegger has taken no position.
Opponents contend the legislation is a thinly veiled push toward allowing insurance companies to require use of satellite technology – known as GPS – that can track not only how far you drive, but where and how aggressively.
"That's a huge invasion of privacy," Holober said. "It's nobody's business."
"I should not be required to give up my privacy in order to pay fair insurance rates," added Carmen Balber of Consumer Watchdog, an industry watchdog group.
NOTE: HUFFMAN IS A VERY RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
Huffman called such claims a "phantom issue."
"The notion that this will require installation of 'spyware' on your car is nonsensical," he said, adding that AB 2800 proposes a voluntary program in which the state, not insurers, would determine verification methods.
"If I thought that this bill was somehow anti-consumer, there's no way I'd be carrying it," Huffman said.
About the writer:
* Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.
Recommend this story at Yahoo! Buzz:
Buzz up!
The Sacramento Bee Unique content, exceptional value. SUBSCRIBE NOW!
Comments
There are 2 comments posted so far. Below is a sampling of the latest comments.
Add Your Comments | View All Comments
*
PapaDoyle at 5:26 AM PST Monday, June 30, 2008 wrote:
If insurance companys are allowed to track every mile you drive then we should be able to track ever...more
*
lpugh at 12:16 AM PST Monday, June 30, 2008 wrote:
Compares to pissing on a forest fire but paying to do so...more
Most Popular
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1.
Search for a state worker's salary -- results page
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Last Updated 12:14 am PDT Monday, June 30, 2008
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Search for a state worker's salary
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Published 12:00 am PDT Monday, June 30, 2008
5.
North Sacramento welcomes a new era of education
Published 12:00 am PDT Monday, June 30, 2008
Last 7 Days
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Search for a state worker's salary -- results page
2.
Sacramento drivers getting gas they pay for at pump, Bee analysis finds
Last Updated 12:39 am PDT Sunday, June 29, 2008
3.
Search for a state worker's salary
4.
Kings put draft picks on parade
Last Updated 12:42 am PDT Sunday, June 29, 2008
5.
2008 Northern California wildfire map
See more most popular stories »
More Stories in Politics
* Honesty can cost in auto policies
* The Buzz: Other legislatures actually do finish
* '527' groups keep low profile - so far this year
* Dan Walters: Schwarzenegger's fire fee justified
* How California budget deadlock affects health care
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Europe Insurers Shift Focus
Life Operations
Are Expanded in Bid
To Protect Profits
By GORAN MIJUK
June 30, 2008; Page C5
ZURICH -- With prices for property and casualty insurance expected to continue falling this year, some European insurers and reinsurers are boosting their life-insurance operations and could pursue takeovers to protect premium growth and profits.
Some life-insurance markets, especially in emerging Asian economies, promise double-digit growth rates because of rising demand for life savings products from increasing numbers of affluent people. As growth for other insurance business is expected to remain sluggish in mature markets like the U.S. and Europe, analysts also expect more takeovers and business tie-ups.
[Jacques Aigrain]
NOTE: LIFE INSURANCE IS INDEED A NEED MAY IT BE IN TIMES OF CRISIS.
World-wide nonlife premiums fell 0.3% last year, while life premiums rose 4.7%, according to data from Swiss Re, which said the trend is expected to stay in place. In Russia, life-premium volume jumped 30%.
Some industry executives and analysts warn that because of a mass move toward emerging markets, growth rates may be less pronounced than expected. Many also caution that large takeovers may be the wrong avenue to boost growth because of the high cost of capital.
"The efforts to increase the life-insurance portfolio by insurance and reinsurance companies are certainly positive," says Rene Locher, a Zurich-based insurance analyst for Sal. Oppenheim. "But the move toward life insurance alone won't be able to fully compensate the fall in prices in the nonlife sector."
NOTE: RENE LOCHER IS A RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
Swiss Re, the world's largest reinsurer in terms of premiums, is shifting focus to life, saying that prices for other insurance, especially in mature markets, are falling. Reinsurance companies provide insurance to insurers, in exchange for a fee.
"We are allocating our capital efficiently to the lines of business with the best return, for example in the life sector," said Swiss Re Chief Executive Officer Jacques Aigrain. He noted that Swiss Re has substantially reduced its exposure to insuring business risk and is now allocating more capital to life-insurance businesses, including those focused on retirement planning.
Companies and analysts say that while life insurance premiums will increase, other insurance and reinsurance prices will weaken fast this year after rising for several years. Besides fierce competition, a weakening economy in the U.S. and in Europe is also expected to put pressure on premiums this year.
Still, emerging markets make up only about a tenth of all the insurance business in industrialized markets. General annual life and nonlife premiums in industrialized countries stood at around $3.6 trillion at the end of 2007, compared with $414 billion in emerging markets.
Hannover Re, which ranks third in premium income among the world's largest reinsurers, after Swiss Re and Munich Re, also hopes that its growing life reinsurance business will help it increase profit this year. CEO Wilhelm Zeller said in June that the company expects to see "double-digit growth" in premiums and net profit from its life and health businesses. The company hopes to boost its life business by 12% to 15% this year, offsetting weak premiums in other businesses, which are expected to shrink by around 5% compared with last year.
French reinsurance company Scor SA also sees strong growth, with less volatility, in the life insurance sector, CEO Denis Kessler said Thursday.
But as the natural growth of business is likely to be too slow, insurance analysts also expect companies to engage in some mergers and acquisitions, although risks will be high given current market volatility.
At Swiss Re, Mr. Aigrain said the company isn't planning any big takeovers but is looking at buying life insurance portfolios from other insurers.
Zurich Financial Services, whose profit depends predominantly on its nonlife business, is believed to be a frontrunner in bidding for Royal Bank of Scotland Group PLC's life and nonlife insurance business. Zurich Financial has repeatedly declined to comment on the market speculation.
The financial market hasn't reacted well to Zurich Financial's presumed interest in the RBS unit, though, fearing that it might pay too much and have to raise new capital. Since the beginning of May, when the Swiss insurer was mentioned for the first time as a possible bidder, its stock has fallen around 20%.
Still, Zurich Financial says it sees growth opportunities in all insurance sectors. "It's not a matter of pitting general insurance against life insurance, since we see attractive opportunities in both", said Zurich Financial Chief Financial Officer Dieter Wemmer Thursday.
Write to Goran Mijuk at goran.mijuk@dowjones.com
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* Sellers Cut Short Any Rally Bid17736306
Investors looking for positive developments at the end of last week were hard-pressed to f...
* EU Cartel Probe Targets Firms17737533
The European Commission said it sent an official list of charges to a number of companies ...
* Assault on Ear, by Any Name17735949
SPACs have been a little slower to take off in Europe, with only 11 launched so far. But i...
* Insurers Face Catastrophe Losses17735935
Bad weather has cost U.S. property insurers over $5 billion in second-quarter claims and c...
* Australian Wages Stable Amid Tight Market17735957
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4. Opinion: Obama's Dry Hole
5. BIS: Economy Nears 'Tipping Point'
MORE
Europe Insurers Shift Focus
Life Operations
Are Expanded in Bid
To Protect Profits
By GORAN MIJUK
June 30, 2008; Page C5
ZURICH -- With prices for property and casualty insurance expected to continue falling this year, some European insurers and reinsurers are boosting their life-insurance operations and could pursue takeovers to protect premium growth and profits.
Some life-insurance markets, especially in emerging Asian economies, promise double-digit growth rates because of rising demand for life savings products from increasing numbers of affluent people. As growth for other insurance business is expected to remain sluggish in mature markets like the U.S. and Europe, analysts also expect more takeovers and business tie-ups.
[Jacques Aigrain]
NOTE: LIFE INSURANCE IS INDEED A NEED MAY IT BE IN TIMES OF CRISIS.
World-wide nonlife premiums fell 0.3% last year, while life premiums rose 4.7%, according to data from Swiss Re, which said the trend is expected to stay in place. In Russia, life-premium volume jumped 30%.
Some industry executives and analysts warn that because of a mass move toward emerging markets, growth rates may be less pronounced than expected. Many also caution that large takeovers may be the wrong avenue to boost growth because of the high cost of capital.
"The efforts to increase the life-insurance portfolio by insurance and reinsurance companies are certainly positive," says Rene Locher, a Zurich-based insurance analyst for Sal. Oppenheim. "But the move toward life insurance alone won't be able to fully compensate the fall in prices in the nonlife sector."
NOTE: RENE LOCHER IS A RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
Swiss Re, the world's largest reinsurer in terms of premiums, is shifting focus to life, saying that prices for other insurance, especially in mature markets, are falling. Reinsurance companies provide insurance to insurers, in exchange for a fee.
"We are allocating our capital efficiently to the lines of business with the best return, for example in the life sector," said Swiss Re Chief Executive Officer Jacques Aigrain. He noted that Swiss Re has substantially reduced its exposure to insuring business risk and is now allocating more capital to life-insurance businesses, including those focused on retirement planning.
Companies and analysts say that while life insurance premiums will increase, other insurance and reinsurance prices will weaken fast this year after rising for several years. Besides fierce competition, a weakening economy in the U.S. and in Europe is also expected to put pressure on premiums this year.
Still, emerging markets make up only about a tenth of all the insurance business in industrialized markets. General annual life and nonlife premiums in industrialized countries stood at around $3.6 trillion at the end of 2007, compared with $414 billion in emerging markets.
Hannover Re, which ranks third in premium income among the world's largest reinsurers, after Swiss Re and Munich Re, also hopes that its growing life reinsurance business will help it increase profit this year. CEO Wilhelm Zeller said in June that the company expects to see "double-digit growth" in premiums and net profit from its life and health businesses. The company hopes to boost its life business by 12% to 15% this year, offsetting weak premiums in other businesses, which are expected to shrink by around 5% compared with last year.
French reinsurance company Scor SA also sees strong growth, with less volatility, in the life insurance sector, CEO Denis Kessler said Thursday.
But as the natural growth of business is likely to be too slow, insurance analysts also expect companies to engage in some mergers and acquisitions, although risks will be high given current market volatility.
At Swiss Re, Mr. Aigrain said the company isn't planning any big takeovers but is looking at buying life insurance portfolios from other insurers.
Zurich Financial Services, whose profit depends predominantly on its nonlife business, is believed to be a frontrunner in bidding for Royal Bank of Scotland Group PLC's life and nonlife insurance business. Zurich Financial has repeatedly declined to comment on the market speculation.
The financial market hasn't reacted well to Zurich Financial's presumed interest in the RBS unit, though, fearing that it might pay too much and have to raise new capital. Since the beginning of May, when the Swiss insurer was mentioned for the first time as a possible bidder, its stock has fallen around 20%.
Still, Zurich Financial says it sees growth opportunities in all insurance sectors. "It's not a matter of pitting general insurance against life insurance, since we see attractive opportunities in both", said Zurich Financial Chief Financial Officer Dieter Wemmer Thursday.
Write to Goran Mijuk at goran.mijuk@dowjones.com
RELATED ARTICLES FROM ACROSS THE WEB
Related Content may require a subscription | Subscribe Now -- Get 2 Weeks FREE
Related Articles from WSJ.com
• How to Keep Health Insurance When You Lose Your Job Jun. 26, 2008
Related Web News
• Cost Of Living - Cheaper, Yes, but Only on the Price - NYTimes.com Jun. 28, 2008 nytimes.com
• Is Liability Insurance a Must to Go Global? Jun. 18, 2008 businessweek.com
More related content Powered by Sphere
Click to format this article for printing Click to format this article for printing View a list of most popular articles on our site Find out about distributing multiple copies of this article Find out about distributing multiple copies of this article
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Friday, July 4, 2008
CAN YOU AFFORD LONG -TERM- CARE INSURANCE?
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Tuesday, July 1, 2008
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Home > Money & Business > Planning to Retire > Can You Afford Long-Term-Care Insurance?
« 8 More Ways to Save in Retirement
Planning to Retire by Emily Brandon
Can You Afford Long-Term-Care Insurance?
June 30, 2008 01:09 PM ET | Emily Brandon | Permanent Link
Long-term care is likely to be most Americans' greatest expense of all in retirement. A private room in a nursing home costs $76,460 annually on average, or $209 a day, and Medicare typically won't cover it.
Long-term-care insurance can help protect you from some of these unpredictable costs. It can be used to pay for nursing home expenses, adult day care, and in-home help for seniors with chronic conditions or who need extra help recovering from an illness.
But this pricey insurance is prohibitively expensive for many people. AARP estimates that a 65-year-old in good health can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing-home and home care. And Fidelity Investments estimates that a couple, both of whom are 65 in 2008, will need $85,000 to insure against a lifetime of long-term-care expenses.
NOTE: THINGS TO CONSIDER PRIOR TO GETTING A LIFE INSURANCE...
If you're going to buy long-term-care insurance, here are a few things to consider:
Premiums. Find out what the premium is now and what it will cost in the future. Ask if a pre-existing medical condition could influence premium prices. AARP says you may not want to buy a policy if the cost of premiums will lower your standard of living or force you to give up other things you need right now. The National Program on Women and Aging recommends that, as a rule of thumb, premiums should be less than 20 percent of your disposable income after all other essential bills are paid. So, this type of insurance is primarily appropriate for people with assets between $200,000 and $1.5 million, according to Consumer Reports. Both long-term-care expenses and insurance are so expensive that almost all middle- and low-income households rely on Medicaid for nursing home care after they spend down their assets to a level at which they qualify.
NOTE: AARP IS A WELL RESPECTED COMPANY IN THE INSURANCE INDUSTRY.
Coverage. You can choose to be covered for different varieties of home healthcare, nursing-home care, or both. Some providers offer lower premiums if you agree to a waiting period of up to 100 days before coverage begins, during which you pay all of your own expenses.
Be sure to ask about the duration of coverage. Long-term-care coverage doesn't always last that long. The average length of stay in a nursing home is 3.7 years for women and 2.7 years for men, according to Joan Bloom, a senior vice president for Fidelity Investments Life Insurance Co. You can choose a benefit period as short as two years or as long as the rest of your life. And you'll want to find out about maximum daily, monthly, or lifetime payouts and whether they are indexed for inflation. If your care costs more than the caps, you will have to pay for it out of your own pocket.
The company. Ask what happens if the insurance company should go out of business before you need long-term-care coverage. And check out its track record for paying out claims. You can examine ratings of companies online at A.M. Best, Moody's, and Standard & Poor's. Consumer Reports recommends that you buy only from insurers that are rated in the top two financial-strength categories by at least two of the ratings services. You can also check up on a company with your state insurance department.
The fine print. Read any contract you sign carefully, and ask questions. Find out how to cancel, what happens if you stop paying the premiums, how many times you can renew, and what needs to happen before you can begin using your benefits. A fee-only financial planner, whom you pay by the hour and who doesn't accept commissions for selling you financial products, can help you decipher the fine-print sales pitch.
Your state. Insurance laws and options vary by state. The nonprofit Family Caregiver Alliance has a Web tool to help consumers peruse long-term-care options in each state. And the National Association of Insurance Commissioners offers consumer tips for buying long-term-care insurance.
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Home > Money & Business > Planning to Retire > Can You Afford Long-Term-Care Insurance?
« 8 More Ways to Save in Retirement
Planning to Retire by Emily Brandon
Can You Afford Long-Term-Care Insurance?
June 30, 2008 01:09 PM ET | Emily Brandon | Permanent Link
Long-term care is likely to be most Americans' greatest expense of all in retirement. A private room in a nursing home costs $76,460 annually on average, or $209 a day, and Medicare typically won't cover it.
Long-term-care insurance can help protect you from some of these unpredictable costs. It can be used to pay for nursing home expenses, adult day care, and in-home help for seniors with chronic conditions or who need extra help recovering from an illness.
But this pricey insurance is prohibitively expensive for many people. AARP estimates that a 65-year-old in good health can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing-home and home care. And Fidelity Investments estimates that a couple, both of whom are 65 in 2008, will need $85,000 to insure against a lifetime of long-term-care expenses.
NOTE: THINGS TO CONSIDER PRIOR TO GETTING A LIFE INSURANCE...
If you're going to buy long-term-care insurance, here are a few things to consider:
Premiums. Find out what the premium is now and what it will cost in the future. Ask if a pre-existing medical condition could influence premium prices. AARP says you may not want to buy a policy if the cost of premiums will lower your standard of living or force you to give up other things you need right now. The National Program on Women and Aging recommends that, as a rule of thumb, premiums should be less than 20 percent of your disposable income after all other essential bills are paid. So, this type of insurance is primarily appropriate for people with assets between $200,000 and $1.5 million, according to Consumer Reports. Both long-term-care expenses and insurance are so expensive that almost all middle- and low-income households rely on Medicaid for nursing home care after they spend down their assets to a level at which they qualify.
NOTE: AARP IS A WELL RESPECTED COMPANY IN THE INSURANCE INDUSTRY.
Coverage. You can choose to be covered for different varieties of home healthcare, nursing-home care, or both. Some providers offer lower premiums if you agree to a waiting period of up to 100 days before coverage begins, during which you pay all of your own expenses.
Be sure to ask about the duration of coverage. Long-term-care coverage doesn't always last that long. The average length of stay in a nursing home is 3.7 years for women and 2.7 years for men, according to Joan Bloom, a senior vice president for Fidelity Investments Life Insurance Co. You can choose a benefit period as short as two years or as long as the rest of your life. And you'll want to find out about maximum daily, monthly, or lifetime payouts and whether they are indexed for inflation. If your care costs more than the caps, you will have to pay for it out of your own pocket.
The company. Ask what happens if the insurance company should go out of business before you need long-term-care coverage. And check out its track record for paying out claims. You can examine ratings of companies online at A.M. Best, Moody's, and Standard & Poor's. Consumer Reports recommends that you buy only from insurers that are rated in the top two financial-strength categories by at least two of the ratings services. You can also check up on a company with your state insurance department.
The fine print. Read any contract you sign carefully, and ask questions. Find out how to cancel, what happens if you stop paying the premiums, how many times you can renew, and what needs to happen before you can begin using your benefits. A fee-only financial planner, whom you pay by the hour and who doesn't accept commissions for selling you financial products, can help you decipher the fine-print sales pitch.
Your state. Insurance laws and options vary by state. The nonprofit Family Caregiver Alliance has a Web tool to help consumers peruse long-term-care options in each state. And the National Association of Insurance Commissioners offers consumer tips for buying long-term-care insurance.
Tags: insurance | retirement
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THE GOOD GUYS OF CREDIT REPAIR
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Credit Cards > Stories > Credit repair good guys: How to find legitimate reselling and rescoring firms
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The good guys of credit repair
Despite many bad apples, some offer a legitimate credit service
By James Rubin
When it comes to finding someone to help you improve your credit, there are good companies and bad. The key is knowing the difference.
Credit repair servicesSome so-called "credit doctors" charge high upfront fees and fraudulently promise to do what cannot be done legally -- erase accurate but negative credit information from a credit report.
NOTE: CREDIT REPAIRS ARE HANDLED BY 'CREDIT DOCTORS'.
Their "black hat" behavior has made the credit repair industry the subject of consumer alerts and repeated sanctions from the U.S. Federal Trade Commission and given the industry an unsavory reputation for wasting consumer's money and making false claims of quick-and-easy credit repair. These credit repair firms are "savvy operators who know how to market themselves," says Lauren Saunders, managing attorney of the Boston-based National Consumer Law Center. "They take your money and besiege agencies with bogus claims and false reasons for having things taken off."
Because of all the bad apples, consumer advocates often issue blanket condemnations of credit repair firms, and say everything they do can be done by consumers themselves. But just as you can mow your own lawn, you don't always have to. There are legitimate credit repair firms -- though they can be tough to find.
Call them the "white hat" vendors. They often charge less, work through referrals, make use of established relationships with the credit reporting bureaus and, most importantly, don't promise the legally impossible: to remove legitimate dings from credit reports. The white hat credit repair firms, sometimes known as credit resellers or rapid rescorers, tend to work out of the public eye and don't make unrealistic promises. They typically work in tangent with mortgage companies, and, when successful, can update and remove outdated or inaccurate negative information from consumers' credit reports, lifting their scores high enough to win approval for better, less costly loans.
Resellers deal with tangible fixes
When applying for a mortgage or other large loan, inaccuracies on credit reports can drastically impact a person's credit, leading to rejection or higher loan interest rates. These inaccuracies can result from identity theft, unsettled disputes with creditors, information that hasn't been updated or administrative mistakes. Resellers (so named because they "resell" credit information to the credit bureaus) regularly help consumers obtain more favorable loans by targeting inaccurate negative items on credit histories by providing supportive evidence from creditors. In some cases, resellers may also request that creditors soften their treatment of debtors who have faced extenuating circumstances, such as illnesses, that may have caused them to fall behind in payments.
Quickly resolving credit inaccuracies is important in the home loan market, where mortgage companies need to make decisions in a few days or less. Consumers who challenge items without help may not receive an answer for 30 days, which is the amount of time that federal law allows credit reporting bureaus to investigate and respond.
Resellers typically contest just a few well-chosen items for a fee of $30 to $50 per item. They usually achieve resolution within 72 hours. The cost for the repairs then become part of the closing costs and may result in saving thousands of dollars over the course of a loan.
5 signs that a credit repair
company is dishonest
NOTE: IMPORTANT THINGS TO CONSIDER BEFORE CHOOSING A CREDIT REPAIR COMPANY TAKE NOTE OF THE 5 SIGNS THAT A COMPANY IS DISHONEST...
* It guarantees it can improve your credit history. Federal law allows you to challenge as many negative credit report items as you want; only ones that are inaccurate or cannot be verified by creditors within 30 days must be removed. If items on your history are legitimate, even the most skilled credit repair firm can do little.
* It charges upfront fees. The higher the amount, the more you should treat them with suspicion. Under the Credit Repair Organizations Act, companies cannot require you to pay until they have performed their services. Some firms evade this restriction by identifying themselves as something other than credit repair shops.
* Its representatives don't tell you your legal rights or what you can do for free. Before you sign a contract, a company must give you a copy of the Consumer Credit File Rights under state and federal law.
* It suggests that you create a new credit identity by applying for an employer identification number to use in place of a Social Security number, or advise you to submit fraudulent information. Following advice that leads to illegal actions may result in prosecution.
* It advises you to dispute everything on your credit report. If the items are legitimate, it won't improve your credit score.
-- Source: Federal Trade Commission
A legitimate service
This type of credit help differs from the subscription-style credit repair services, which pursue cleaner credit records in return for expensive, long-term monthly fees. Most consumer groups oppose these contracts as unnecessary.
"There's a major difference between credit repair and what rapid rescoring is all about," says Terry Clemans, executive director of the National Credit Reporting Association, a Washington, D.C., trade organization.
Consumer groups that are among the harshest critics of black-hat credit repair firms say that resellers deliver a legitimate service. "It's not a scam," says Travis Plunkett, legislative director of the Consumer Federation of America, a Washington, D.C., trade group of some 300 nonprofit organizations. Joe Rideout of Consumer Action, a San Francisco-based advocacy and education group, calls resellers "the quickest way to eliminate inaccurate information where you may not have time to wait 30 days. They have a track record of achieving results for their clients."
'You can hire a professional'
Despite the bad rap, some credit repair firms operate lawfully and with good intentions. For example, Texas-based Repairmycreditnow.com has posted a $10,000 security deposit with the Texas Secretary of State to cover potential consumer complaints. Jim Kemish, co-founder of Florida-based Sky Blue Credit, says that his firm saves clients time. "Credit repair is the same as repairing your own auto," says Kemish. "How much time do you want to put into it? You can hire a professional to take care of your car or your credit." He adds: "We're not selling removing legitimate derogatory credit items, but just removing the items that shouldn't be there."
Consumer groups say even if consumers find good credit repair companies, it's less costly to challenge items on their own. Consumers can download sample letters and templates to challenge inaccurate information. It's not all that difficult, but it does take time, effort and follow-through.
No big promises, no big fees
Resellers differ from the black-hat credit doctors because they don't claim to guarantee success or charge upfront fees. They don't even market directly to consumers and rarely have contact with them.
Their methods also differ from those of some credit repair firms, which use software programs to dispute a high volume of negative items, even those that are accurate, in hopes that the credit bureaus will slip up. At best, the barrage of challenges from an illegitimate credit repair company can cause negative items to temporarily slip off a consumer's credit report, if the credit bureau can't verify all the information within the 30-day deadline mandated by federal law. But once verified, the negative, accurate items will reappear.
Resellers' methods are target-specific. They wait for lenders with whom they've often had ongoing relationships to recommend their services to customers who need just a few extra points on their scores. For example, Los Angeles-based Conquer Credit has built its business entirely through referrals. "We've never spent a penny on marketing," says Angela Setters, Conquer's founder.
High success rates
Moreover, resellers' success rates are high because they analyze credit histories thoroughly before challenging items and work regularly with rapid resolution units within the three major credit bureaus. They also frequently have evidence in hand in the form of letters from creditors acknowledging mistakes.
Ruth Koontz, vice president of Lenders Credit Services, a Maryland company that provides rapid rescoring services, says her firm rejects about 50 percent of the candidates presented for rapid rescoring. She touts an 82 percent success rate of removing inaccurate items leading to score increases. "We identify things that can be changed legitimately and get those changes made," Koontz says.
Still, resellers are not the answer to all problems. They cannot erase accurate negative information or items currently in dispute. Even when they successfully challenge an inaccuracy, they can't guarantee a score change. That depends on the credit bureau's computer models. Also, resellers say they may need more time to resolve a dispute if the customer doesn't have proof, usually a letter from the creditor, that an error has been made. It can take weeks to obtain such a document, although resellers will frequently take care of this task.
What to look for when hiring someone
to improve your credit score
* Resellers recommended by mortgage brokers or mortgage lenders are most often legitimate. If they operate unethically, they risk losing their relationship with credit bureaus' rapid resolution divisions.
* Avoid companies that charge upfront fees and make bold promises of success, particularly if they guarantee that they can have any negative items on your credit report removed. No organization can permanently delete an accurate negative item.
* Choose companies that carefully explain their products and services. They are required to do so by federal law.
Useful when speed is required
Nonprofit credit counseling agencies that create debt management strategies and offer other financial advice say consumers should save rapid rescoring only for emergencies, such as sudden purchasing decisions or unexpected problems on a credit report. They say that under normal circumstances, potential homeowners can avoid paying the extra fees for rapid rescoring by checking at least one of their credit reports every four months, paying down debt and challenging inaccuracies months in advance.
"Resellers are kind of like the FedEx of credit repair," says Natalie Lohrenz, counseling administrator of Consumer Credit Counseling Services of Orange County. "If you're going to send something, the U.S. Postal Service is fine." With all the services available to track credit reports, consumers should be able to quickly spot and fix mistakes or problems in them. "It's sad that people can challenge items but they don't plan ahead," says Lohrenz.
Resellers say that the system for reporting credit events is imperfect, overly dependent on creditors' record-keeping and lines of communication with bureaus. An updated file that doesn't arrive on time, if at all, data that is input into the wrong file, or creditors who simply fail to reflect new information promptly may lead to drastic scoring decreases.
For example, one of Koontz's recent clients saw her nearly impeccable credit drop about 200 points into the subprime 500s when a creditor failed to note a payment. Recently divorced, she saw her loan application stall while her ex-husband's went through painlessly. Koontz was able to resolve the issue for the woman. "That's how damaging one item can be," she says.
See related: What is credit counseling?, Understanding how credit scores work, Check out credit counselors' credentials first
Published: June 26, 2008
Comments or Questions, Library of Stories
Three most recent Credit scores, credit reports stories:
* Credit checks for job applicants become more common – Increasingly, job hunters are required to allow credit checks during the application process. It's legal, but the applicant has rights, too. ...
* What VantageScores are, how they work – The new VantageScore credit scoring product combines Equifax, Experian and TransUnion credit scores into one score. ...
* The good guys of credit repair – Credit repair firms say they can boost your credit score, but it's credit resellers who do the job for less hype, less money and less mystery. ...
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Reward Credit Cards
* Points
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* Hotel/Travel
* Home Improvement
Cash Back Credit Cards
Airline Credit Cards
Business Credit Cards
Student Credit Cards
Prepaid & Debit Cards
Credit Card Specials
Search by Credit Quality
Excellent Credit
Good Credit
Fair Credit
Bad Credit
No Credit History
Bank Credit Cards
Advanta
American Express®
Bank of America®
Capital One®
Chase
Citi® Credit Cards
Discover®
First National Bank of Omaha
First Premier Bank
HSBC Bank
MasterCard®
Orchard Bank®
Visa®
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Credit Card Site Map
Accept Credit Cards
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Merchant Account Articles
Online Credit Card Applications
Credit Cards > Stories > Credit repair good guys: How to find legitimate reselling and rescoring firms
The good guys of credit repair
Despite many bad apples, some offer a legitimate credit service
By James Rubin
When it comes to finding someone to help you improve your credit, there are good companies and bad. The key is knowing the difference.
Credit repair servicesSome so-called "credit doctors" charge high upfront fees and fraudulently promise to do what cannot be done legally -- erase accurate but negative credit information from a credit report.
NOTE: CREDIT REPAIRS ARE HANDLED BY 'CREDIT DOCTORS'.
Their "black hat" behavior has made the credit repair industry the subject of consumer alerts and repeated sanctions from the U.S. Federal Trade Commission and given the industry an unsavory reputation for wasting consumer's money and making false claims of quick-and-easy credit repair. These credit repair firms are "savvy operators who know how to market themselves," says Lauren Saunders, managing attorney of the Boston-based National Consumer Law Center. "They take your money and besiege agencies with bogus claims and false reasons for having things taken off."
Because of all the bad apples, consumer advocates often issue blanket condemnations of credit repair firms, and say everything they do can be done by consumers themselves. But just as you can mow your own lawn, you don't always have to. There are legitimate credit repair firms -- though they can be tough to find.
Call them the "white hat" vendors. They often charge less, work through referrals, make use of established relationships with the credit reporting bureaus and, most importantly, don't promise the legally impossible: to remove legitimate dings from credit reports. The white hat credit repair firms, sometimes known as credit resellers or rapid rescorers, tend to work out of the public eye and don't make unrealistic promises. They typically work in tangent with mortgage companies, and, when successful, can update and remove outdated or inaccurate negative information from consumers' credit reports, lifting their scores high enough to win approval for better, less costly loans.
Resellers deal with tangible fixes
When applying for a mortgage or other large loan, inaccuracies on credit reports can drastically impact a person's credit, leading to rejection or higher loan interest rates. These inaccuracies can result from identity theft, unsettled disputes with creditors, information that hasn't been updated or administrative mistakes. Resellers (so named because they "resell" credit information to the credit bureaus) regularly help consumers obtain more favorable loans by targeting inaccurate negative items on credit histories by providing supportive evidence from creditors. In some cases, resellers may also request that creditors soften their treatment of debtors who have faced extenuating circumstances, such as illnesses, that may have caused them to fall behind in payments.
Quickly resolving credit inaccuracies is important in the home loan market, where mortgage companies need to make decisions in a few days or less. Consumers who challenge items without help may not receive an answer for 30 days, which is the amount of time that federal law allows credit reporting bureaus to investigate and respond.
Resellers typically contest just a few well-chosen items for a fee of $30 to $50 per item. They usually achieve resolution within 72 hours. The cost for the repairs then become part of the closing costs and may result in saving thousands of dollars over the course of a loan.
5 signs that a credit repair
company is dishonest
NOTE: IMPORTANT THINGS TO CONSIDER BEFORE CHOOSING A CREDIT REPAIR COMPANY TAKE NOTE OF THE 5 SIGNS THAT A COMPANY IS DISHONEST...
* It guarantees it can improve your credit history. Federal law allows you to challenge as many negative credit report items as you want; only ones that are inaccurate or cannot be verified by creditors within 30 days must be removed. If items on your history are legitimate, even the most skilled credit repair firm can do little.
* It charges upfront fees. The higher the amount, the more you should treat them with suspicion. Under the Credit Repair Organizations Act, companies cannot require you to pay until they have performed their services. Some firms evade this restriction by identifying themselves as something other than credit repair shops.
* Its representatives don't tell you your legal rights or what you can do for free. Before you sign a contract, a company must give you a copy of the Consumer Credit File Rights under state and federal law.
* It suggests that you create a new credit identity by applying for an employer identification number to use in place of a Social Security number, or advise you to submit fraudulent information. Following advice that leads to illegal actions may result in prosecution.
* It advises you to dispute everything on your credit report. If the items are legitimate, it won't improve your credit score.
-- Source: Federal Trade Commission
A legitimate service
This type of credit help differs from the subscription-style credit repair services, which pursue cleaner credit records in return for expensive, long-term monthly fees. Most consumer groups oppose these contracts as unnecessary.
"There's a major difference between credit repair and what rapid rescoring is all about," says Terry Clemans, executive director of the National Credit Reporting Association, a Washington, D.C., trade organization.
Consumer groups that are among the harshest critics of black-hat credit repair firms say that resellers deliver a legitimate service. "It's not a scam," says Travis Plunkett, legislative director of the Consumer Federation of America, a Washington, D.C., trade group of some 300 nonprofit organizations. Joe Rideout of Consumer Action, a San Francisco-based advocacy and education group, calls resellers "the quickest way to eliminate inaccurate information where you may not have time to wait 30 days. They have a track record of achieving results for their clients."
'You can hire a professional'
Despite the bad rap, some credit repair firms operate lawfully and with good intentions. For example, Texas-based Repairmycreditnow.com has posted a $10,000 security deposit with the Texas Secretary of State to cover potential consumer complaints. Jim Kemish, co-founder of Florida-based Sky Blue Credit, says that his firm saves clients time. "Credit repair is the same as repairing your own auto," says Kemish. "How much time do you want to put into it? You can hire a professional to take care of your car or your credit." He adds: "We're not selling removing legitimate derogatory credit items, but just removing the items that shouldn't be there."
Consumer groups say even if consumers find good credit repair companies, it's less costly to challenge items on their own. Consumers can download sample letters and templates to challenge inaccurate information. It's not all that difficult, but it does take time, effort and follow-through.
No big promises, no big fees
Resellers differ from the black-hat credit doctors because they don't claim to guarantee success or charge upfront fees. They don't even market directly to consumers and rarely have contact with them.
Their methods also differ from those of some credit repair firms, which use software programs to dispute a high volume of negative items, even those that are accurate, in hopes that the credit bureaus will slip up. At best, the barrage of challenges from an illegitimate credit repair company can cause negative items to temporarily slip off a consumer's credit report, if the credit bureau can't verify all the information within the 30-day deadline mandated by federal law. But once verified, the negative, accurate items will reappear.
Resellers' methods are target-specific. They wait for lenders with whom they've often had ongoing relationships to recommend their services to customers who need just a few extra points on their scores. For example, Los Angeles-based Conquer Credit has built its business entirely through referrals. "We've never spent a penny on marketing," says Angela Setters, Conquer's founder.
High success rates
Moreover, resellers' success rates are high because they analyze credit histories thoroughly before challenging items and work regularly with rapid resolution units within the three major credit bureaus. They also frequently have evidence in hand in the form of letters from creditors acknowledging mistakes.
Ruth Koontz, vice president of Lenders Credit Services, a Maryland company that provides rapid rescoring services, says her firm rejects about 50 percent of the candidates presented for rapid rescoring. She touts an 82 percent success rate of removing inaccurate items leading to score increases. "We identify things that can be changed legitimately and get those changes made," Koontz says.
Still, resellers are not the answer to all problems. They cannot erase accurate negative information or items currently in dispute. Even when they successfully challenge an inaccuracy, they can't guarantee a score change. That depends on the credit bureau's computer models. Also, resellers say they may need more time to resolve a dispute if the customer doesn't have proof, usually a letter from the creditor, that an error has been made. It can take weeks to obtain such a document, although resellers will frequently take care of this task.
What to look for when hiring someone
to improve your credit score
* Resellers recommended by mortgage brokers or mortgage lenders are most often legitimate. If they operate unethically, they risk losing their relationship with credit bureaus' rapid resolution divisions.
* Avoid companies that charge upfront fees and make bold promises of success, particularly if they guarantee that they can have any negative items on your credit report removed. No organization can permanently delete an accurate negative item.
* Choose companies that carefully explain their products and services. They are required to do so by federal law.
Useful when speed is required
Nonprofit credit counseling agencies that create debt management strategies and offer other financial advice say consumers should save rapid rescoring only for emergencies, such as sudden purchasing decisions or unexpected problems on a credit report. They say that under normal circumstances, potential homeowners can avoid paying the extra fees for rapid rescoring by checking at least one of their credit reports every four months, paying down debt and challenging inaccuracies months in advance.
"Resellers are kind of like the FedEx of credit repair," says Natalie Lohrenz, counseling administrator of Consumer Credit Counseling Services of Orange County. "If you're going to send something, the U.S. Postal Service is fine." With all the services available to track credit reports, consumers should be able to quickly spot and fix mistakes or problems in them. "It's sad that people can challenge items but they don't plan ahead," says Lohrenz.
Resellers say that the system for reporting credit events is imperfect, overly dependent on creditors' record-keeping and lines of communication with bureaus. An updated file that doesn't arrive on time, if at all, data that is input into the wrong file, or creditors who simply fail to reflect new information promptly may lead to drastic scoring decreases.
For example, one of Koontz's recent clients saw her nearly impeccable credit drop about 200 points into the subprime 500s when a creditor failed to note a payment. Recently divorced, she saw her loan application stall while her ex-husband's went through painlessly. Koontz was able to resolve the issue for the woman. "That's how damaging one item can be," she says.
See related: What is credit counseling?, Understanding how credit scores work, Check out credit counselors' credentials first
Published: June 26, 2008
Comments or Questions, Library of Stories
Three most recent Credit scores, credit reports stories:
* Credit checks for job applicants become more common – Increasingly, job hunters are required to allow credit checks during the application process. It's legal, but the applicant has rights, too. ...
* What VantageScores are, how they work – The new VantageScore credit scoring product combines Equifax, Experian and TransUnion credit scores into one score. ...
* The good guys of credit repair – Credit repair firms say they can boost your credit score, but it's credit resellers who do the job for less hype, less money and less mystery. ...
Secure SSL Technology
Secure SSL
Technology
Home
Site Security
Privacy Policy
Site Map
FAQs About Us
Overview
Leadership Team
Press Room
Careers Contact Us
Customer Support
Partnership Opportunities
Business Development
Media Relations Related Sites
Tarjetas de Credito
UK Credit Cards
Australian Credit Cards
Credit Card Blogs
© Copyright 2008 Credit Cards.com. All Rights Reserved. Terms of Use
TRUSTe - Click to Verify
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