What is Credit?
Essentially, credit is accepting something of value now with an agreement to pay for it later. Moreover, there is usually a finance charge added by the lender.
Consequently, moves made after establishing credit will impact your score. In any case, a solid strategy will benefit you.
You can find a plethora of information via the links provided. Nevertheless, these aren’t affiliate links. I merely, wanted to share information that is readily available to the public.
Know your rights, that’s a key component in financial literacy. Your Financial Path.
Financial Literacy 101
All three bureaus have an online dispute process, which is often the fastest way to fix a problem, or you can write a letter.
It is our understanding that writing letters are more effective, unless you’re updating your personal info/addresses. Additionally, if items are determined to be fraud, contact the creditor.
Then you can request a security freeze via the bureaus. It is suggested that victims of identity theft should file a police report contact the FTC.
How Disputes Work
The bureau must note the dispute and investigation on your credit file. To add, this process should be completed in about 30 days. The bureau must update you with the results.
There are a few decisions you’ll see such as, Verified: No change is made. Modified: Revisions are in place. Deleted: Removal of items. Deemed frivolous: No further investigation will be made.
Look for lawsuits or judgments older than seven years after the judgment is entered, or after the statute of limitations expired, which can vary by your state. Inquiries should automatically delete after two years, so dispute those if necessary.
Essentially, your scores are used to predict credit worthiness. Your FICO® and VantageScore are similar despite being different models… both range from 300 – 850.
The FICO® is considered most accurate. You can view your FICO® scores free via your Experian. Another option would be your loan company or your bank. Credit Strong offers your FICO® score free too. (Credit Strong is an affiliate link)
The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you.
Are FICO® Scores and VantageScore® Different
CPN or Credit Privacy Numbers, this information is very important in the credit industry. Financial literacy is vital.
“If you’re struggling with poor credit scores, you know they can pose plenty of challenges. A poor credit score can keep you from getting approved for a credit card or a car loan. It can make renting an apartment difficult. So when you see an ad promising to help you start over with a new credit history by getting a CPN, it may seem like the answer to your prayers. But is it?
A CPN, or credit privacy number, is a nine-digit number that’s formatted just like a Social Security number (SSN). It may also be called a credit profile number or credit protection number. Companies that sell CPNs to consumers market them as a way to hide a bad credit history or bankruptcy. They’ll also claim you can use the CPN instead of your SSN to apply for credit with your new credit identity.
Does this seem too good to be true? That’s because it is. In fact, it’s illegal. Keep reading to discover the truth about CPNs.
Do CPNs Really Help With Bad Credit?
Companies selling CPNs market them as replacement SSNs, promoting the idea that CPNs are legitimate. For example, one site advertising CPNs claims the numbers are “fully tri-merged with the Social Security Administration.” (Sounds official, doesn’t it?)
In reality, these companies are scam artists. They may obtain SSNs by dubious means—often from children, senior citizens or prison inmates.
If you’re paying attention, you’ll spot plenty of warning signs that CPN sellers are involved in something shady. While SSNs are issued for free, companies will charge you money for a CPN—sometimes thousands of dollars. They may tell you to provide false information—such as a different address, phone number or email address—when you fill out credit applications using the CPN. Often, they’ll pretend this is a way to protect your identity—but they’re really directing you to create a false identity.
When you’re eager to repair your credit, it’s easy to ignore these red flags. But using a CPN can lead to much bigger problems than a poor credit rating. No matter how the CPN is obtained, using it on a credit application or anywhere else may be considered identity theft. In addition, lying on a credit or loan application or misrepresenting your SSN is a federal crime.