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[T1360]Truth Or Dare Embarrassing

by Jim Kemish, Jim

The credit reporting system is inherently unsound. It's up to you to uncover the truth. A nationally recognized credit repair expert offers some astonishing information about the hidden world of the credit bureaus.

Credit Repair and the Great Illusion

Credit repair is a discovery process. The vast majority of consumers in the United States are intimidated by the thought of credit repair. The credit bureaus are viewed in the same light as the Internal Revenue Service; a temperamental and potentially ruthless big brother. Oddly enough, this perception could not be farther from the truth. It turns out that the credit bureaus are quite tame and even reasonable, if you know how to manage them.

Protecting the Myth

Like the Wizard of Oz, the credit bureaus live happily behind the curtain of illusion, benefiting from the aura of power. Let's dispel the myth a bit to spark your credit repair efforts. The credit bureaus are not government entities, nor do they have any government blessing. They are big business, and exist to make money. And they do a great job of it. They are well managed, well focused, and extremely profitable. And in spite of the fact that they have become indispensible intermediaries and guardians of your precious credit score, any communication from you is an unwanted burden on their bottom-line.

Credit Repair and the Truth

So, what went wrong? If the credit bureaus are doing such a great job of running their operations why are there so many errors in consumer credit files? Why is credit repair even needed? There is no contradiction here. Profitability and competence in no way guarantee an accurate product. In fact, by moderating the effort that goes into quality control the credit bureaus demonstrate their business savvy and bolster their bottom line. Does this seem outrageous? After all, your financial life depends on your credit scores. Shouldn't the credit bureaus be held to the highest level of accuracy when it comes to such important data? Yes and no.

Legislation Cuts Both Ways

Because of the importance of the product they offer, the credit bureaus have been on the business end of countless lawsuits. In fact, a day does not go by when a non-compliance lawsuit is not filed against one of the three major credit bureaus. The importance of credit repair and the groundswell of consumer concern have not escaped the notice of federal lawmakers. The law that governs the credit reporting industry and provides legal leverage used by professional credit repair services is called the Fair Credit Reporting Act (FCRA). There is much in the way of consumer protection built into the FCRA, but there is just as much protection for the credit bureaus.

Credit Repair to the Rescue

The law simply demands of the credit bureaus that reasonable steps be taken to maintain quality. And here is the essential point for all of those interested in credit repair to be aware of; reasonable steps may be determined by the credit bureaus based on the costs associated with implementation. In other words, if it costs too much to fix, it's going to stay broken. But, not to worry, you are not without a remedy. Credit repair to the rescue.

Credit Repair and the Bureaucracy

As frustrating as it may be to discover that there such a margin of error allowed in an industry that has so much power over your life, there are ways you can make sure that your credit report shines. All the credit repair tools you need are built into the same tome of law, the FCRA. Many people think of the FCRA as the consumer protection law that was designed to force the credit bureaus to provide more accurate data. It's not so.

Looking More Closely

A close reading will reveal the fact that the overriding focus of the consumer protection built into the FCRA provides consumers with basic legal rights to rectify credit reporting errors. This is a radical difference from forcing the bureaus to be accurate. The true message of the FCRA is, look out for you, because no one else will.

How Bad is it?

If the FCRA puts so much of the burden of accuracy on the consumer, it means, by inference, that in the absence of consumer participation credit reports are likely contain errors. And that is exactly what has occurred. Fully seventy-five percent of consumer credit reports contain errors and require credit repair. Fifty percent contain errors significant enough to cause those afflicted to pay premium interest rates and even get denied for loan requests.

The Law is Your Sword

Credit repair, as a result, is as an essential process in your life as a regular physical examination or tuning up your car. Credit repair is far more than a credit rejuvenation for those with past credit issues, it is a necessity for everyone. If you don't have the time to manage the credit repair process on your own, hire a professional. It's important, it's your credit, take care of it. Good luck!

Unless God forgot your eyes and ears at birth, you have undoubtedly seen all the ads everywhere from your television set to your local newspaper.

These types of loan can fit will for many people as I am sure they do in certain circumstances but there are many caveats that you must be aware of and pay close attention to if you are considering a reverse type of loan.

There are many loan programs, over a dozen at the time of this writing, that are designed around the reverse mortgage concept.

Taking this into consideration, your first consideration should be to seek out lenders who offer a large number of these loans for you to consider.

Be very wary of lenders who will only offer you two or three choices as most likely these are in house packages that are self centered with your lender and may not offer you the best terms that you will find with lenders offering you a bigger selection of loan packages.

Once you arm yourself with the facts before you go shopping, reverse mortgage pitfalls need not even occur.

Reverse mortgage loans are usually structured around a couple basic requirements. The first and foremost is your age. HUD for instance requires you to be 62 while the more conventional market will make loans to younger groups.

The pitfall here is that the younger you are the less attractive interest rate you will get which can really hurt you down the road.

You must remember that inflation and cost of living continue to increase. Will your loan payments increase with these factors as well?

Your reverse mortgage contract must include some sort of cost of living adjustment. If it doesn't where do you think your income will put you 10 years from now?

Another reverse mortgage pitfall is that you must be aware that you are required to pay all the yearly taxes on your property. Make sure you figure that into your yearly income as from these loans well.

Keeping up your property. Yes, the lenders will require this. Expenses such as roofing, heating, air conditioning, plumbing and on and on will pop up from time to time and you need to factor in these costs over the years as well.

You must pay for all your housing insurance. Your lender will require up to the minute insurance coverage as they need to protect their investment. Again, make sure these costs are included.

Last but not even close to least is your utility costs. They will continue to rise as previously mentioned in the inflation factor. How much to you think you will be paying on your electric bill a decade from now?

The bottom line? These are just a few of the things you need to consider and talk over with your lender. There are more and you will find these online if you know where to look.

Add up all the costs you will be expected to pay over the course of the next 10 to 15 years and make sure your contract adjusts upward so the power you have in one dollar today is reflected with that same power a decade from now.

Reverse mortgage pitfalls? Maybe yes, maybe no. It all depends on how you structure you loan and the knowledge you have about it when that loan is created. Keep in mind that knowledge is power and only you decided how much power you will take to the table!

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Both Jim Kemish & Barry Crewse are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jim Kemish has sinced written about articles on various topics from College Student Loan, Credit Loans and Free Credit Report Score. Jim Kemish, a nationally recognized credit repair and restoration expert, is the president of Sky Blue Credit, a leading service since 1989. Jim is also. Jim Kemish's top article generates over 301000 views. to your Favourites.

Barry Crewse has sinced written about articles on various topics from Dog Beds, Home Security and Woman Menopause. If you are considering a reverse mortgage and would like to know more about Swing by our site at. Barry Crewse's top article generates over 8100 views. to your Favourites.