It has been said that "the sum of a person's life is ultimately the stories
they leave behind for others to see and hear." Did you know that a credit report is one of the most important financial stories of one's life? Think of a credit report as the ultimate story of a person's bill paying history. This story can cost a consumer hundreds of thousands of dollars in the amount of interest paid when using credit and borrowing money. Do you know what type of story your credit report is telling?

Benjamin Franklin summed it up best when he said, "An investment in knowledge always pays the best interest."

At Financial 180 Group, we unlock the mysteries of one's credit history. We believe in providing our clients with more than just a basic understanding of the credit reporting process. It has been our experience that the BEST results are achieved through a combination of education, experience, know-how and discipline. We look forward to being of service to those who find themselves in any credit challenged situation.

"Knowledge is Power" by Sir Francis Bacon (1561-1626). Religious Meditations, Of Heresies, 1597

ARE YOU PLAYING CREDIT CARD ROULETTE?
You have seen them, everybody has. You open your credit card bill and there it is. A blank check with your name on it, for you to use in any way you want. Best of all, there is a low interest rate...0%... a limited time. Sometimes for as long as six months or more. It looks too good to be true. As is the case most times, when something looks to good to be true, it usually is.

Credit card companies routinely send these magic checks out to people with low balances or who limit the use of the credit card. After all, a credit card that isn't being used isn't doing much for the bank's bottom line. So they make these offers in the hope that their customer will transfer high interest balances, take advantage of low interest for that vacation they have been passing by, or get more air miles just in case. While these are all valid reasons, there are some pitfalls to this plan that many or most people find themselves falling into. Here are some things to remember before you take advantage of these offers.
LOOK OUT FOR THE FEES There is often a transaction fee for balance transfers, often as high as 3%. This term is hidden in the fine print. Be careful. That transfer of $3,000 at zero interest just cost you a cool ninety bucks.

CAN YOU PAY IT OFF IN TIME The low monthly interest is a good idea if you can pay off the amount within the time limit of the offer. It's a good idea to save on interest. But remember that after the six months are up, that interest goes up to the regular interest rate. Make sure that rate is not higher than the rate on your other cards.

DON'T BE LATE If you are late with your payments –even for a day– special rate reverts back to your original interest rate. Often, credit card companies that appreciate your business will raise your interest rate to a default rate, typically over 29%, as a token of their appreciation.

DON'T DOUBLE DOWN Remember, if you pay transfer a balance or use these checks to pay off another credit card, that card now has a zero or low balance. While your intentions may be good, the temptation to use that card is great. Most people will use it. Cautiously at first. Just to buy gas. Maybe to go out to dinner a couple of times. Then they get an email about a great deal on a plasma TV, and before they know it, the six months have gone by and both cards are at the maximum.

DON'T USE THEM If you are not sure that you will be able to make timely payments and control your other debt, the best thing to do is avoid the temptation to take advantage of these offers. If you fail to use the checks in the allotted time, don't worry. You will get more in your next statement. If you don't need them or if it doesn't make sense to use them, don't use them.

DESTROY THE CHECKS IF NOT USED There will be another time to discuss identity theft. But if the banks are enjoying a bonanza with these checks, identity thieves are right behind them. These checks often provide information that can be used by someone else. If you are in the habit of discarding your statements, these checks and other information without destroying them, get out of that habit. People go "dumpster diving" for this information, and often use it to steal identities. It's a sad fact. But it is something we all have to be aware of.
The next time you get one of these offers...check the mailbox...remember this. Credit card companies were given enormous leverage in their ability to recover defaulted debt by the new Bankruptcy rules. Your ability to discharge this debt is severely curtailed. So even if you took advantage of these offers with the best of intentions, you may find yourself strapped with mounting debt and nowhere to turn for relief, or even a claim of fraud from the credit card company. Late fees, over limit fees and 30% interest can turn a $3,000.00 limit to a $8,000.00 lawsuit in no time. For many people, this spiral downward starts when they cash those checks or transfer a balance. Many of them never recover.

So, what do you do with these offers?
1. If you must use them, use them wisely.
2. Make sure you can pay them off.
3. Never make a late payment.
4. If you pay off another credit card, close the account or exercise the discipline it
takes not to use it.
5. Don't pay off a credit card with a lower interest rate.
6. If you don't think you can take these steps, DON'T USE THE CHECKS!
7. Make sure you destroy the checks if choose not to use them.
You have worked hard to get the kind of credit rating it takes to qualify for these offers. Don't let the use of credit be the reason you lose your good credit rating.

As many of us know, a negative credit rating can cost you countless thousands of dollars over the course of your life. Having an account go into default, collections or litigation can literally bury you in debt for the rest of your life. If you find that things have gotten out of hand, get some help. Call the credit card company. Call a credit counselor. Call a lawyer if you need one. But don't ignore the problem. Take control. It will not go away on its own.

The Naked Truth About Your Credit

We have been involved in consumer credit industry for over twenty years. In the past, we offered our services to our clients and have helped hundreds of them achieve financial success. As we move forward, we would like to reach out to clients, friends, co-vendors and friends of clients and vendors and share some of the expertise we have attained over the years. We hope you find our newsletter enjoyable and educational.

Our goal is to inform you about credit and your rights. We will address some of the more compelling and complicated issues facing consumers today in future installments. For now, let's begin with the basic information contained in a credit report. Among other things, a credit report contains the following important information about you:

There are laws that govern the information contained in a credit report. One of the most important of these is The Fair Credit Reporting Act or FCRA. Per the FCRA you have the right to challenge the accuracy of any information being reported on a credit report. The FCRA also sets standards for how long an item can stay on your credit report. The common ones are:

Not all entries are subject to these rules. There are exceptions for Student Loans, debts over certain limits and others. Also note that inquiries are not always for application for new credit. Sometimes, they are for job applications, medical or insurance applications, and even background checks. It's always best to have your credit reviewed by a professional who can help identify those special circumstances if they apply.

The most often used credit report scoring system is called a "FICO" score, which stands for Fair Isaac & Company, who created the "FICO" scoring system. Do you know your credit score?

If you have a specific question or concern, give us a call. If we do not have the answer, we will find it for you.

Common Credit Report Misconceptions
By Rob Goldstein

There are various rumors, myths and misconceptions floating around regarding credit reports. Following are 4 of the most common myths surrounding Credit Reports.

1. "My credit score will drop if I check my credit."
This is absolutely NOT true. We as consumers are entitled to check our Credit Reports as often as we see fit and it will not result in a decrease in ones credit score. In fact, with the ever increasing instances of Identity Theft, most experts recommend that consumers check their credit report at least twice a year.

It is 'hard inquiries' from a lender or credit grantor that will result in a 3 to 5 point decrease in credit score. For this reason you want to be extra cautious when giving a third party permission to run your credit report.

2. "If I close all my inactive credit accounts my score will improve."
FALSE! Closing certain inactive accounts can actually lower your credit score. According to TransUnion, if those inactive accounts are some of the oldest accounts on your report "canceling old credit accounts can lower your credit score by making your credit history appear shorter."

Depending upon the circumstances of your specific credit report you should be able to cancel the most recently opened inactive accounts with no negative impact to your credit score.

3. "The Negative Accounts on my Credit Report will automatically
fall off. "
While it is true that there are laws mandating how long negative or derogatory information can be reported by the credit reporting agencies, in most instances this type of information does not disappear on its own.

The credit reporting agencies are not able to automatically update the hundreds of million individual consumer accounts that make up our credit histories. Studies have proven that there are outdated and incorrectly reported entries in over 80% of the consumer credit profiles being reported by the major credit reporting agencies. This is one more reason why it is important to periodically check your credit report.

4. "I check my credit report through Experian; I don 't need to check the other agencies."
If you truly want to know what is on your credit report you must check with ALL three, TransUnion, Equifax, Experian, major credit reporting agencies.

Some lenders and credit grantors only report information to one agency, while others report information to all three agencies. Thus by only checking a report from Experian; you may be missing critical information that is actually being reported on either TransUnion or Equifax.

At Financial 180 Group we unlock the mysteries of one's credit history.

Common Credit Report Misconceptions, Part 2: Charge Offs

You've checked your credit report and discover that you have an account that is listed as a "charge-off." It is common misconception that a charge-off means the debt has been written off and is no longer owed. However, a charge-off simply put is an accounting method for declaring old debts, usually 6 months and older, as un collectible which allows the company to write the debt off or deduct it as a loss on their tax return.

A charge-off is a major negative on a credit report and in spite of the name it is still a valid debt. Some companies will bundle a group of charge-offs and sell them to a third party collection company while other companies will use an attorney firm or in-house collection division to seek payment on the debt. Simply paying a charge-off will not remove it from your credit report as it will update to a paid status on the report. Per the 'Fair Credit Reporting Act' a charge-off, paid or unpaid, can continue being reported on a credit report for up to 7 years.

For those who may have an unpaid charge-off reported on their credit report obtaining new credit will be a tough challenge and will undoubtedly pay a higher interest rate because of the charge-off. However all is not lost, over time one can rebuild their credit score with the help of knowledgeable professionals such as those at Financial 180 Group.

"Nobody goes there anymore. It's always too crowded." –Yogi Berra

Yogi is the uncontested king of double talk. His observations are legendary. Surely most of you have a favorite "Yogism." Here are a few of mine:

"It aint over till it's over."

"It gets late early out there."

"Fifty percent of hitting is ninety percent mental."

Truly confusing stuff sometimes. But even Yogi would be confused by some of the language in you credit card User Agreements. And when you fail to read the fine print in these things, you really put yourself at risk if you should miss a payment or two. While some of the language is hard to understand, it is definitely to your advantage to know what you are getting into when you get a new credit card.

A couple of years ago Congress re-vamped the Bankruptcy laws, making it harder to discharge credit card debt. Though the change was designed to punish people who knowingly abuse credit, it has the effect of putting people who simply had temporary monetary problems into financial ruin, with no real protection in Bankruptcy. Some things to remember before you run up those credit card bills.
INTEREST RATES If you got a teaser or introductory rate when you applied for your card, be sure to make your monthly payment on or before the due date. Some credit cards will raise your interest if you are late even one day with the payment.

SPECIAL CHECKS These come to you in just about every monthly bill. The promise reduced interest or no interest for a limited amount of time. The interest rate on these can change to a default rate if you are late with your payments.

LATE CHARGES The new Bankruptcy Act included an increase in the late charges banks may collect. Up to $30 per event. A late charge may result in your interest rate being raised to the 'Default Rate.' This rate can be as high as 29%!

OVERLIMIT FEES Also increased to $30. An over limit charge may increase your interest rate to the 'Default Rate.'

COLLECTION COSTS These costs could have a devastating effect on your financial future. Each month, your balance is incurring interest, late fees and over limit charges. When a collection agency or law firm gets involved, those fees are added to the outstanding amount due as well. Even a small account of Five Hundred Dollars can become Ten Thousand in what appears to be the wink of an eye.

BANKRUPTCY Basically the Chapter 7 discharge of all debt no longer exists unless you meet certain criteria. That means that you could be making payments to the court for 3-5 years to pay off a portion of your credit card debt.

NEW TERMS AND CONDITIONS Every once in awhile, there will be a notice of change of conditions included in your bill. Often, this includes a change in interest rate, late fees, over limit fees or other conditions that may considerably have an effect on the cost of using your card. Most people throw them out without ever noticing them. Most times the notice says that if you do not use the card after the date of the notice, the account will not be changed. Some people figure they can do that. Well guess what? They cannot. So the new terms invariably kick in.
Many credit card companies have started a new trend. Somewhere on their 'too good to be true' offers, they include a customer friendly statement that says, "Let us be up front with you, this interest rate is only guaranteed for…," and then goes into the default conditions. I'm sure this was an involuntary action on their part. It may disclose some of the issues, but certainly not all. Remember to read the entire disclosure. If you don't understand it, don't get the card.

Doing anything financially today is becoming more and more complicated. And it is easy for a consumer to overlook important facts that affect their financial stability later. That is why it is important for you to be diligent in reading and understanding what you are signing.

And leave the Yogism to the man who invented them.

IDENTITY THEFT: It can happen to you!
"I would never join a club that would have me as a member."
–Groucho Marx

Believe it or not, that's the way many people feel about the chance that their identity will be stolen. They ask themselves why someone would want to steal the identity of someone who has less than perfect credit. The answer is simple. Someone who commits this crime steals as many identities as possible first and worries about the quality of the product later.

If someone is successful in using your accounts for even one transaction, they have achieved their goal. So, while you may think your credit and identity are without value, a thief would most definitely disagree.

How Do These People Get Information About Me?
They are very resourceful to say the least. Everyone is aware computer fraud and how thieves can hack into your accounts on line. If you are on line, there is always a chance that your personal account information can be accessed and used to steal your identity. You can protect yourself to some extent from this kind of activity. You can install a firewall or other security device, minimize your time on line, run anti spy software and utilize any number of strategies to protect your computer. That's a good start. But many people leave themselves vulnerable in much less sophisticated ways. Identity theft can happen right before your eyes without you ever knowing it. Here are some common ways a thief might access your personal information.

Obviously, one does not have to be on the cutting edge of technology to rip you off. Even the least sophisticated criminal mind can access your information and use it to their advantage, and destroy your credit in the process.

OK. So How Do I Protect Myself?
There are some basic precautions you can take. Remember, diligence on your part is the best protection. But it is no guarantee that you are 100% safe. The more you know about this crime, however, the less likely you are to become a victim.

Here's what you can do:
1. Buy a paper shredder. I know you don ?t want to appear to be paranoid. The fact is, however, that shredding your bills and records when you are done with them is the single most effective way to render them useless to a thief. You can pick up a shredder for about twenty bucks at one of the big office supply stores.

2. Do not open 'suspect' or 'spoof' emails. Often, you will receive an email that looks like it came from 'Bank of America' or 'Ebay' or some other reputable company. Do not respond to an email that asks for your social security number or credit card information. If you suspect an email is a spoof, contact the business it pretends to represent and report it.

3. Make sure you destroy all those receipts you get from a restaurant, department store and the like. Keep the ones you need for your records. Shred or tear the others and dispose of them properly.

4. Shred or completely destroy old credit cards.

5. Do not give out personal information in an unsolicited phone call.

6. When you go on vacation, make sure you have someone pick up your mail or have it held at the post office until your return.
There are probably hundreds more precautions you can take. The bottom line is that you need to be aware of your surroundings and try to imagine how you would gather this information if you were so inclined. The possibilities will amaze you.


What Do Identity Thieves Do With My Identity?
Pretty much anything you can do with it. Remember, they have become you for all intents and purposes. Here are some of the more common consequences of identity theft.

Again, the possibilities are endless. Victims have lost their homes, cars and suffered irreparable damage to their reputations. Although these consequences are extreme and not the normal situation, you must be aware of the possibility and understand that someone tampering with your identity is no laughing matter.

I Get It. It's Serious. How Do I Know If Someone Has
Stolen My Identity?
There are some basic things to look for. Someone may be
using your identity:
1. If you stop receiving a credit card or bank statement, a red flag should go up. Someone may have diverted your mail to a different address.

2. If you start getting collection letters or phone calls on accounts you never opened.

3. If you get a credit card or bill in the mail on an account that you never applied for.

4. If you are stopped by the police for a traffic violation (or worse!) for apparent reason.

5. If your credit scores go down or if you are denied credit for no apparent reason.
Someone Stole My Identity. What Do I Do Now?
1. File a report with the local police department.

2. Contact your creditors and let them know that you have become a victim of identity theft.

3. Send a letter to the Federal Trade Commission explaining that you have become a victim of identity theft. Include the police report and supporting documentation.

4.Contact the companies that are reporting accounts that were opened without your knowledge and close the accounts.

5.Contact the three major credit reporting agencies, Trans Union, Equifax and Experian, and ask them to put a hold on your accounts because of identity theft.

6. An initial "Fraud Alert" stays on your record for 90 days. No accounts may be opened without proper screening and identity. This could be a bit inconvenient, but it's worth it to protect your identity.

7. An extended Fraud Alert may be placed on your account if you provide an "Identity Theft Report" to the bureaus. When this happens, your name will be removed from marketing lists for pre-screened credit offers for five years, unless you request to be reinstated on the list.

8.Check your credit report frequently. When you file a Fraud Alert, you are entitled to free credit reports for this purpose.
The law dealing with identity theft is quite extensive. This discussion is not a substitute for legal advice nor is it meant to be an exhaustive report on your rights as a consumer. Remember, if you feel that you have been a victim of identity theft, nothing can replace competent legal advice.

Depending upon the situation, however, you may be able to handle it yourself. But if things become more serious, such as judgments, liens or criminal activity as a result of identity theft, it's best to refer to a professional for help.

Last month, we talked about credit reports and what they say. Now it's time to discuss what you can do to delete or upgrade misleading or incorrect information appearing on your credit profile. This process is commonly called 'credit repair'. The process of credit repair is simple on its face. Credit Bureaus such as Trans Union, Equifax and Experian even provide forms for you to utilize. However, disputing an item is one thing. Knowing what to look for and how to identify a questionable entry is quite another.

There are numerous errors for you to dispute. Some of the more common ones are:

It is important for you to realize that there must be some reason behind your dispute. Remember, nobody can remove an item that is accurate or legally entered on your credit report. You have the right to dispute items and may get good results if you do it yourself. However, we have found that there is no substitute for expert advice when it comes to identifying errors and filing the correct dispute to resolve the problem.

We like to dispute in writing, have a record of what was sent, and the agencies are allowed reasonable time to respond and prove you wrong. When making any dispute, be sure to include whatever supporting documentation you may have to prove your claim. The credit bureau has 30 days to verify that the disputed item is accurate unless they show cause for an extension. The maximum amount of time for a response is 45 days. Once the item is disputed, the reporting party, or the subscriber, must verify that the information reported is accurate. If they cannot do so within the allotted time, the bureau must delete the entry. Many creditors simply do not respond. Others do not have the ability to respond to a large volume of disputes. And others still cannot verify the information reported. For those reasons, a legitimately disputed item stands a pretty good chance of being deleted without contest.

There are other ways besides disputes to improve your credit score. For example, how many open accounts you have is a factor. Obviously, the more credit exposure you have, the lower your score will be. Try not to approach your limit on any credit card. We advise you to stay below 50% of your available credit. Try to minimize the number of inquiries that appear on your credit report. Remember excessive inquiries are a red flag for some creditors.

There are many more ways to manage and improve your credit. At Financial 180, we can review your credit report and professionally address your particular needs and concerns. Each situation is unique and deserves personal attention and real world solutions.

Credit Report Maintenance
by Rob Goldstein

We spend hundreds if not thousands of dollars maintaining automobiles, homes, our appearance and other image factors while ignoring our credit report.

Too often we don't think about our credit report until it is time to make a major purchase such as a home or automobile. The saying goes
'to be forewarned is to be forearmed.' Take some time, before you sit down with a lender or the finance manager at an auto dealership, to review your credit report.

Following are a few suggested areas of maintenance one should routinely perform on ones credit report:
• Pay down or if possible pay off balances on credit cards or installment accounts. Your score will go up if you reduce the amount of debt reflected on your report.

• Check for inaccurate, and old, 7 to 10 years or older, negative information which may still be showing on your credit report.

• Don't close older paid off accounts. Shutting down credit accounts lowers the total available credit and closing older accounts can actually shorten the length of your reported credit history making one appear to be a higher credit risk.

• Don't be surprised by unpaid tax liens or collection accounts which have a major negative impact on credit scores. You will want to make sure any such accounts are paid and reflect as paid and or satisfied before you apply for new credit or financing.
These are just a few of the issues it would be wise to address before sitting down with a lender. Be a smart consumer and maintain a regular schedule for checking what is being reported on your credit report. The professionals at Financial 180 Group are available to answer any questions you may have.


COLLECTIONS CONNECTIONS… (And How To Avoid Them)

If you are reading this, chances are you've been involved in at least one of these phone calls:

(Phone Rings)

YOU: I 'll get it honey!

WIFE: OK dear!

YOU: Hello?

VOICE ON PHONE: I want to talk to Mrs. Simmons.

YOU: Who is calling?

VOICE ON PHONE: That's not your business. Tell her I need
to speak to her NOW!

YOU: I'm sorry, we're having dinner right now.

VOICE ON PHONE: I'll bet she can afford to eat great dinners
because she doesn't pay her bills!

And CUT!!

OK. I'm not going to win any awards for the screenplay. But the fact is, this little scenario or something like it is played out hundreds of thousands of times a day. Nobody really wants to see it, but it gets more airplay then The Godfather on TNT.

What you do at this point in the conversation is critical. It determines whether you are going let some abusive loudmouth ruin your dinner, or if you are going to take charge of the conversation and explain some things to him or her. The key to making the right decision is knowledge. Knowing what your rights are will protect you from collectors and collection calls.

So what are these rights? There are many protections afforded to you in the Fair Debt Collections Practices Act (FDCPA). A more detailed discussion is for another day. But if you familiarize yourself with even the most basic parts of the law, your answer to that collector will be quite different than someone who does not.

Some things a collector can not do:

There are countless others ways a collector can violate the FDCPA. And believe me, my 25 years of experience has shown me that they will go to any means to do so. You would think with all of these violations it should be a relatively easy thing to control these guys. Right? Well, not really. And there some good and not so good reasons why.

First of all, our victim in our screenplay is just like any of us. A collection call can be a very intimidating thing. Even if you know you do not owe the money and are fully armed with a bag full of laws and violations. It's not fun to receive a hostile phone call from someone who not only believes you are delinquent, but genuinely believes that you are a lowlife because of this account. They don't care about your situation and most times will not let you explain. If you are in a serious debt crisis, you can be intimidated by what appears to be a stronger position and forget what to do. If there are multiple calls and letters, many people simply stop answering their phones and opening their mail. This only compounds the problem. But many people are willing to pay whatever the price just to be left alone.

Many of these violations go unreported simply because the debtor starts questioning his or her own worth and integrity. The constant stream of harassment wears some people down so much that they simply give up. They don't seek out help because they are convinced that because of what the collectors say, they don't deserve it. The irony of that is that many collectors who act this way could crawl under the belly of a snake without hitting their heads. Usually calls like this are made close to some deadline or incentive for the collector. The fact is, if they don't get your money, chances are they will be delinquent paying their bills. That in and of itself is a reason not to pay them in my opinion.

The standard advice given to people is to "get an attorney." While I agree with that, there is a not so good reason why this doesn't always work. While the FDCPA gives you rights, it does very little in the way of allowing you to collect damages if you are successful in filing a lawsuit. Consequently, most lawyers do not want to get involved in a case that will result in nominal compensation. After all, they have to pay their bills too. That said, some attorneys will help you write letters and show you how you can deflect these calls. Sometimes, there are some issues that may make it worth the attorney's time to actually take the case. More on that at another time.

You might be asking yourself what there is you can do for yourself if all the other options don't seem to work so well. Here are some ideas.
1. Write a 'cease and desist' letter to the creditor. This is a letter that says just that. The creditor must cease and desist from all communication with you. Most creditors, especially collection agencies, will simply go away if you send that letter. That's because they want to work on accounts that will bring in some money. If they can't contact you, they cant earn. Usually the account is referred to another agency or back to the original creditor.

2. When you receive a communication in the mail, do NOT ignore it. If, for instance, it tells you that the matter is going to an attorney, you should be aware of that fact.

3. If the collection agency continues to call you after you've sent your cease and desist, write a letter of complaint to the Federal Trade Commission and send the creditor a copy. This can be done online at the Federal Trade Commission's website.

4. If the problem becomes overwhelming for you, seek out help.
Financial 180 Group can help you through your debt crisis with over 25 years of experience dealing with hostile creditors. Often, we can get a creditor to accept a settlement or some other accommodation. Together, we can work to relieve you of this burden.

5. If you are sued, seek help immediately. The last thing you need is a default judgment. Financial 180 Group can refer you to an attorney in our network, or you can seek one out. Either way, it is imperative that you do something.

There are ways to deal with this crisis. Real Estate agents should be aware of some of the ways to deflect creditor calls and harassment. Remember, the sooner you get your client out of this mess, the sooner you will be able to do what you are trained to do: Help them buy or sell a home. When your client needs help, Credit Solutions Consultants can help them, or we can help you learn how to help them yourself. Ending the Collection Connection is something that a client does not have to face alone. They have a network of professionals available to help. And we are there to help you all.

SWIMMING WITH THE SHARKS

Are you in debt over your head? Many people are.

While there are many factors that may affect your credit scores, the reality is debt and payment history are the two main factors that can cause the most impact. If you can take care of those two factors, the rest will follow suit. If you are not able to make your payments on time, chances are you have too much credit or are using too much of the credit you have.

If you are able to pay down the outstanding balances or pay them off, this should increase your score. Unfortunately, most people cannot do that. This is where the downward spiral that turns into a nightmare begins.

If you are seriously past due or in collection, you can negotiate discounts with the collectors and save a lot of money. But there are consequences to consider. If you settle a debt for less that full balance, creditors will report this to the credit bureaus and initially, your credit scores will go down. On rare occasions, the creditor will agree to report the account as paid as agreed. Financial 180 Group has over fifteen years of experience in negotiating adjustments to credit reporting after settlement. Often, there is a reason for the delinquency that is shared by the creditor. We are experts at finding reasons for the creditor to make an accommodation. After the debt is paid, we can analyze your complete credit profile for inaccuracies. If inaccuracies exist, we can remove or update the errors on your credit profile and improve your scores. This may take several months. With time and our expertise, however, you may see a drastic improvement in your situation.

After the process is complete…debts are settled, paid in full or paid down, your credit profile is corrected and your scores are up to an acceptable level… is some maintenance to be done. Many people use their credit cards to buy groceries, gasoline, a Happy Meal or other small ticket items so they can get the reward miles or other bonuses. This is fine if you are able to pay the balance quickly. All too often, this is not the case. The balances creep up and before you know it, you are right back where you started. You must monitor your spending habits to avoid this.

We recommend that you have 5-6 major credit cards, 3-4 store credit cards, and 2 gas credit cards for optimum credit ratings. Keep the balances low and make your payments on time. It is also a great idea to pay more than the minimum payment as often as possible. It is wise to keep the balances open for emergencies, but if there are no emergencies, treat your cards as if they are maxed out. Don't rely on them to maintain your lifestyle.

Finally, try to avoid those 'too good to be true' credit card offers you get in the mail. When you apply for credit, you lower your scores. Each time you apply it results in an inquiry and inquiries will affect your score. And if you open the account, the new credit line and lack of history on the new card will lower it even more. So when you see these offers, you have to ask yourself if the cost is worth the benefit.

We sincerely hope you are able to avoid some of the pitfalls people face when using credit. However, should you find that you need help; you will find a professional staff with the expertise you need to resolve your problem at Financial 180 Group.

Why Trust Financial 180 Group

 The very first thing you want to know about any company being considered to you with credit issues is 'can you TRUST them?'

After all, the company will have access to some very personal information, your credit profile. Your credit report shows more about you than almost any other document in existence.

With so many credit repair companies available, how can you choose which company to entrust with such vitally important information? The first step should be to check which companies have some type of license or are registered with local Governmental agencies and which companies are bonded.

Another reason that TRUST is so important is that you are relying on company's like ours to help you improve your FICO scores, in order to buy the home of your dreams or refinance your home. In addition have you ever stopped to realize how much money good credit can save you in interest on a car payment or house payment? Those with high credit scores get offered financing incentives like 0% or 5% interest rates by car manufacturers, while those without high credit scores may be paying as much as 21% interest on the same auto financing.

It is also important to know that the professionals at Financial 180 have over 25 years of experience in the industry. I personally have been dealing with consumers and businesses in Orange County, California, for approximately 17 years. Many local Real Estate Agents, CPA firms and Attorneys have trusted Financial 180 Group enough to refer clients to us because we produce results. We are happy to provide reference letters, to those considering our services, from some of our satisfied clients as well as from some of the same local Real Estate Agents, CPA's and Attorneys I mentioned earlier.

So, just as you need to have TRUST in your doctor, lawyer, CPA, or realtor, you need to have TRUST in anyone you choose to help you with credit report issues.

For questions regarding any aspect of your credit report or for a FREE Credit Report analysis contact Financial 180 Group.