Credit Repair

Table of Contents
Your Credit Repair Companion    1

Chapter 1
The Elements of Repairing Credit    3

Chapter 2
Credit Reports and Credit Scores:
The Nuts and Bolts    5
How Creditors Evaluate Your Creditworthiness    7
Credit Reports and Credit Scores: What's the Difference?    8
Your Credit Report    9
Getting Your Credit Report     11
What Is in a Credit Report?    19
Investigative Reports    24
Who Can Look at Your Credit Report    25
Your Credit Score: What It Is and Why It Matters    30
How Credit Scores Are Calculated    31
What Credit Score Do You Need to Get Credit?     36
Getting Your Credit Score    37

Chapter 3
The First Step to a Better Credit Score - Cleaning Up Your Credit Report    43
Common Errors in Credit Reports    45
Your Right to an Accurate Credit Report    46
Review Your Report for Errors and Incomplete or Prohibited Information    49
Dispute Incomplete and Inaccurate Information    52
Add an Explanatory Statement to Your Credit File    63
Add Positive Information to Your Credit Report    65
Check Your Credit Reports Often    69
Avoid Credit Repair Clinics    70

Chapter 4
Assess Your Financial Situation    75
How to Assess Your Financial Situation    77
Determining Your Credit Repair Options Based on Your
Financial Situation    87

Chapter 5
Reducing Current Expenses and Debts    93
Cutting Expenses    94
Reducing Current Debt Obligations    105

Chapter 6
Reducing Your Mortgage Debt    121
How a Foreclosure Works    123
How Foreclosure Affects Your Credit    126
Federal Programs for Homeowners Having Difficulty Paying
Their Home Mortgages    128
Short-Term Solutions    130
Refinance    131
Modify Your Loan Terms    132
Leaving Your Home     134
How a Foreclosure Modification, Short Sale, or Deed in Lieu
Affects Your Credit    138

Chapter 7
Reducing Debt Through Bankruptcy    141
Chapter 7 Bankruptcy    142
Chapter 13 Bankruptcy    145
Bankruptcy and Credit Repair: Does It Help or Hurt?    147

Chapter 8
Finding Money to Pay Your Debts    149
Ways to Raise Money    150
Options to Avoid    161

Chapter 9
Negotiating With Creditors and Debt Collectors    169
Prepare a Negotiating Plan    170
Negotiating With Creditors and Debt Collector    177
Dealing With Debt Collectors    188
Tax Consequences of Forgiven Loans    204

Chapter 10
Getting Help to Negotiate and Manage Debts    207
Avoid Most Debt Relief Services    208
How Does a Debt Management Plan Work?    211
Debt Management Plans vs. Chapter 13 Bankruptcy    213
Choosing a Good Credit Counseling Organization    214
After You've Chosen an Agency, Monitor Your Plan    220

Chapter 11
Building Positive Credit History    221
First Steps to Rebuilding Credit    222
Ways to Improve Your Credit History Without Getting
New Credit    226
Next Steps to Rebuilding Credit & Getting New Credit    235
Putting It All Together: Preventing Future Financial Problems    244
Be on Guard for Credit Discrimination    246

Chapter 12
Choosing and Using Credit and Debit Cards    259
The Credit CARD Act: What's in It for You    260
Choosing Credit Cards    265
Using Credit Cards: How to Protect Yourself    276
Why You Should Avoid Debit Cards    284
Avoid Prepaid Cards    288

Chapter 13
Avoiding and Dealing With Identity Theft    289
The Crime of Identity Theft: The Scope of the Problem    290
What's in a Stolen Name?    291
How Can an Identity Be Stolen?    292
How to Protect Yourself    294
Protecting Your Social Security Number     299
If Your Identity Is Stolen    301
Identity Theft Protection Products and Insurance    310

Appendixes
A
Resources    313
Debtors Anonymous    314
Nolo Publications    314
Other Publications    315
Online Resources    315
Where to Complain: Federal Agencies    317
State Consumer Protection Agencies    318

B
Forms and Letters    327
Form F-1    Request Credit Report
Form F-2    Request Reinvestigation
Form F-3    Request to Furnishing Creditor to Reinvestigate
Form F-4    Request Follow-Up After Reinvestigation
Form F-5    Request Removal of Incorrect Information by Creditor
Form F-6    Creditor Verification
Form F-7    Request Addition of Information Showing Stability
Form F-8    Request Addition of Account Histories
Form F-9    Monthly Income
Form F-10    Your Debts
Form F-11    Daily Expenses
Form F-12    Payments to Savings and Debt Reduction
Form F-13    Monthly Budget
Form F-14    Inform Creditor of Judgment Proof Status
Form F-15    Request Short-Term Lower Payments
Form F-16    Request Long-Term Lower Payments
Form F-17    Request to Pay Nothing Short-Term
Form F-18    Request to Pay Nothing Long-Term
Form F-19    Request Rewrite of Loan Terms
Form F-20    Offer (Delayed) Payment of Past Due Amounts
Form F-21    Offer (Reduced) Lump Sum Payment
Form F-22    Offer Payment Schedule to Pay Off (Reduced) Debt
Form F-23    Cashing Check Constitutes Payment in Full (Outside of California)
Form F-24    Cashing Check Constitutes Payment in Full - First Letter (California)
Form F-25    Cashing Check Constitutes Payment in Full - Second Letter (California)
Form F-26    Cashing Check Constitutes Release of All Claims
Form F-27    Offer to Give Secured Property Back
Form F-28    Request Direct Negotiation With Creditor
Form F-29    Request for Verification of Debt/Identity of Original Creditor/Return of Debt to Original Creditor
Form F-30    Complaint About Debt Collector Violation of Law
Form F-31    Debt Collector:  Cease All Contact
Form F-32    Request for Basis of Unfavorable Credit Offer or Action
Form F-33    Identity Theft Dispute Letter for Existing Accounts
Form F-34    Identity Theft Dispute Letter for New Accounts
Form F-35    Notice of Billing Error Dispute on Credit Card Bill
Form F-36    Notice of Claim or Defense Dispute on Credit Card Bill
Annual Credit Report Request Form
Identity Theft Victim's Complaint and Affidavit
FTC's Sample Dispute Letter to Credit Reporting Company
Memo From FTC to Law Enforcement FCRA ¤ 611
CFPB's Notice to Furnishers of Information
FCRA ¤ 611

C
Additional State Protections Concerning
Credit Repair Clinics    421

D
How to Use the Interactive Forms on Nolo.com    429
Editing RTFs    430
Downloadable Forms Available on the Nolo Website    431
Index    435