Credit Justice Services

During the last 10 years, I’ve been blessed to have several of my companies reach success and to achieve my entrepreneurial goals. I’ve watched CJS grow and expand to more than 46 states, and now – because of the commitment and hard work of my CCCs and AEs – it is the fourth-largest credit repair company in our country.

However, over the years, I’ve come to realize that some of my most rewarding moments have been volunteering in my community. Most recently, these efforts have included volunteering as coach of the Fernandina Beach High School wrestling team. The Florida Times-Union newspaper and the Scotsman Guide were kind enough to feature my philanthropic endeavors in their publications. Please visit (insert link) to read the articles.

I want to encourage all AEs and CCCs to get involved with a cause in their communities. There are several positive benefits to community service, and most people are surprised by how many business leads they receive while working toward a goal with other like-minded people. The following list provides some reasons to get involved.

1. Community participation is a great way to feel connected to the area in which you live.

2. The best networking happens when you’re participating in something you enjoy.

3. Traditional functions, such as Chamber of Commerce networking meetings, can get stale after awhile, especially if you keep running into the same crowd of people. Break out of that networking rut!

4. When you volunteer for a cause, you can give something back to the community while also gaining trust and respect from the people around you.

5. Forming relationships outside of work may attract new clients. In today’s economy, everyone knows someone experiencing credit problems.

At CJS, we are all dedicated to consumer rights. Since we are in this fight for more than just money, it is our social responsibility to participate in our communities. Being an AE or a CCC with CJS means reaching out to people who need help, and being a community volunteer is a perfect way to spread that message.

Douglas Muir, CEO

For Brandon and Amanda Mendelson, it had all the elements of a paperback thriller: the innocent newlyweds, the mysterious account held by an obscure bank in Boca Raton, the faceless corporation controlling everything behind the scenes. But when the Mendelsons discovered the strange overdue loan mistakenly listed on Amanda’s credit report, they weren’t exactly thrilled. The Glens Falls, N.Y., couple had never done business with that bank, and the error spoiled Amanda’s credit history. Making matters worse, their call to a national credit bureau yielded nothing more than a form letter stating that the accuracy of the entry had been “investigated” and “verified.” Now they can’t help but wonder: investigated how? Verified by whom? Brandon studied organizational leadership in school, but even he can’t imagine how the bureau failed to fix such an obvious mistake. “Maybe it fell through the cracks,” he says.

Or maybe the process worked pretty much as it was designed to. Although they generally decline to discuss specific cases, the three major credit bureaus – Experian, Equifax and TransUnion—each attest to their commitment to accuracy and accountability in their record keeping. But while consumers might assume that each bureau employs an army of dedicated sleuths who carefully investigate and correct errors, all the bureaus actually process most disputes using a system that’s almost entirely automated—and where human beings are involved, they’re often working at a harried pace. The bureaus say the system, dubbed with the Muppety acronym e-OSCAR, is the most efficient way to handle the more than 20,000 disputes a day they receive. In practice, most complaints are electronically zapped straight to the lender, and according to consumer advocates, many lenders respond by simply re-reporting the erroneous data.

Credit-report accuracy is profoundly important now, because an error can wreak more havoc than ever on your financial life. Before the nation heard the words credit crisis, just about anyone with a pulse could get a loan. Now many banks are refusing credit to anyone who looks remotely risky. And as legions of anxious job hunters know, a growing number of employers routinely check credit reports before they make a hire. It’s no wonder, then, that the National Foundation for Credit Counseling says call volume is up 31 percent in the past 12 months. “Credit is on consumers’ minds more than ever before,” says Curtis Arnold, CEO of CardRatings.com.

But according to a 2007 survey by pollster Zogby, 37 percent of consumers who obtain their credit reports find errors, and half of those said they could not easily correct the mistakes. An earlier study by the U.S. Public Interest Research Group, a nonprofit consumer advocacy organization, found that one in four reports contained “serious errors.” For its part, the Consumer Data Industry Association, the industry’s trade group, says only 11 percent of consumers who get their credit report file a dispute and just 5 percent of those challenge the results. “That’s an excellent satisfaction rate,” says the group’s president, Stuart Pratt. Still, even some industry insiders say there’s a problem. Testifying before Congress, one CEO of an independent Arizona credit bureau likened the dispute process to “having an IRS audit, brain surgery, getting a tooth pulled or going to your own funeral.”

And when the dispute process fails, consumers say they are left feeling powerless. Martha Soto, a 63-year-old Antioch, Calif., shipping manager, says she couldn’t get the mortgage she needed last fall because Experian listed her as the defendant in an unpaid court judgment. She says she’s faxed records proving that she’s actually the plaintiff; Experian says they’re the wrong records, and the dispute is still unresolved, leaving Soto increasingly frustrated. “They’re defaming you, and you can’t do anything about it,” says Soto. “It’s scary to think an agency like that can control your life.”

From: SmartMoney Magazine by Anne Kadet – Feb.2, 2009

For complete article visit: http://www.smartmoney.com/Spending/Rip-offs/Why-The-Credit-Bureaus-Cannot-Get-it-Right/?page=all

Sometimes it takes an expert in the field of credit repair to assist consumers in removing negative information from their credit reports and helping them to not feel powerless. Founded by a former owner of a collection agency, Credit Justice Services helps consumers protect their credit rights using our 75 Day Credit Makeover Process. Our process is backed by knowledge, experience and know-how. We personally educate and assist the consumer to move forward in a positive direction. We do it ethically, affordably and quickly. Call 904-757-0880 today to speak to a Certified Credit Consultant and get on your way to freedom!

Personal credit and Business credit are 2 different animals. I would like you to review the information below. This will be very useful to you and your clients.

Business Credit Cards – A Credit Score’s Best Friend

You have probably already established personal credit…so now it is time for you to strengthen your financial fortress and safeguard your credit score by building business credit.

Business credit comes with good news and bad news. The good news is more times than not it does not get reported on your personal credit report…and the bad news is also that it does not get reported on your personal credit report. That is why it is so important that you have established personal credit before heeding this advice.

Unless you’re Microsoft, chances are good that you have to sign personally in order to qualify for a business credit card. But other than the inquiry that shows up on your credit report when you apply for the business credit card, 90% of all business credit cards do not get reported on your personal credit report unless you default on the payment. If you do, then the account will get reported to your personal credit report and your credit score will be affected negatively.

Now why is this good for your credit score?

Well, the credit score only analyzes what it sees on your personal credit report. And given the fact that 30% of the credit score is derived from the ratio between your credit balance and limits on your report, not having a “maxed-out” business credit card showing on your credit report can be a very helpful thing for your score.

For example, let’s assume you have $50,000 in revolving credit available to spend. Let’s also assume that your credit score is a 730. If you were to go and max out these credit cards the next day, once the balance reflects on your credit report, your 730 credit score may drop to a 650. Now let’s look at the same situation where you have a 730 credit score but the $50,000 you spend is on business credit cards that do not report to your credit report. Your 730 credit score will remain a 730 credit score and you will be able to get favorable financing even though you are carrying the same debt load as the previous example where the score dropped to 650. The credit score only scores what it can see; business credit that is not being reported on the personal credit report does not affect the score whatsoever.

But it is important to pay on time – if you do get business credit that shows on your personal credit report even if you are not late, that credit is treated exactly as if it was personal credit and having the business credit will not yield any benefit to your credit score whatsoever.

I suggest building your personal credit first before you attempt to build your business credit card portfolio because you do have to have good credit being reported to qualify for these business accounts. More good news – the credit card companies do not require that you have a business license or a corporation, and the simple classification of being “self-employed” is typically enough to pass muster.

My two favorite banks for business credit cards are American Express and MBNA. A good start would be to apply for a regular American Express charge card that needs to be paid in full each month and also an American Express revolving business card like “Blue for Business” that you can pay minimum monthly payments on. MBNA has a business credit card called Platinum Plus for business, which affords a low rate and a high credit limit. American Express will not report to your personal credit report regarding your business credit card unless you are approximately 120 days late. MBNA on the other hand will report the account to your personal credit report once you become 30 days late.

The flexibility and control that business credit cards give you with your personal credit score are worth their weight in gold, and in many cases will allow you to save countless thousands in interest on your next mortgage by affording you the highest credit score possible.

Douglas Muir, CEO

What your clients need to know

Some clients attempt to fix their credit on their own by visiting the credit bureaus’ web sites and disputing online. This is incredibly tempting because the consumer can dispute trade lines from the comfort of his own home. But this convenience can have a very uncomfortable outcome.

While proceeding through the dispute process, the consumer is asked to check a box before moving forward. This is the Terms of Service box, and most people click it without thinking. A lot of sites have these terms, and generally people don’t bother to read this section. But on the credit bureaus’ sites, this section asks consumers to relinquish their legal rights under The Fair Credit Reporting Act (FCRA).

One of the biggest and scariest parts of this section is the following condition: “Once an item has been verified by the credit grantor, you may not dispute the same item again without providing additional relevant information.”

This is in complete opposition to the FCRA, which says that consumers can dispute the accuracy of their credit reports as many times as they would like, and that the bureaus must reinvestigate each time. The FCRA is there to protect consumers’ rights, and the credit bureaus are trying to get around the law by forcing consumers to agree with these Terms of Service.

Not only do the Terms of Service remove the consumer’s right to multiple disputes, but they also don’t specify an end date. That means the consumer is banned from ever disputing the same trade line in the future. If the credit bureaus verify the original disputes, then the consumer is left with that negative trade line affecting his credit score. And he is left without any means to fight against that harmful information.

Make sure that all your friends, family and clients know that the credit bureaus’ Terms of Service require consumers to surrender their rights under the FCRA. Even if someone is trying to dispute something minor, by simply checking a box, he abandons his chance to achieve a positive resolution.

Douglas Muir, CEO

Most everyone is aware that credit scores generally determine whether an application for credit will be approved or denied. Credit decisions are made on car loans, credit cards, mortgages and most other forms of credit based on an applicants credit score. But, the affect of your credit score is not limited to what happens on the corner of approval or denial. If you are sent down the road of approval, your credit score will also determine the tolls you’ll pay.

On November 20, 2007 Fannie Mae and Freddie Mac announced loan price increases for borrowers with credit scores below 680 on loans with loan-to-values above 70%. Simply put that means that if you don’t have a 30% down payment and your credit score is below 680 you are going to pay higher closing costs and/or higher rates on your home mortgage.

Unfortunately, higher mortgage rates are just one of the ways your credit score can affect the prices you pay. When it comes to credit card debt an average borrower can easily pay twice as much or more interest as someone with an exceptionally high score. Understandably, borrowers whose credit scores identify them as low risk are offered the lowest interest rates available.

What other bills are you paying that are affected by your credit score?

Recent studies have shown that 92% of the largest automobile insurers use credit data in underwriting new business. It has been estimated that a consumer with bad credit is going to pay 20 to 50% more in auto premiums than a person who has good credit.

An Insurance Credit Score is also used to determine whether or not you will get homeowner’s insurance and how much you will pay for it! This is based on the belief that the lower your score, the higher the chance that you will file a claim, inflate a claim or commit fraud.

Clearly anyone whose credit report doesn’t identify them as a perfect credit risk is a target to pay more for all the most expensive things in their life. How much would an average family save if they could cut their mortgage and credit card payments as well as their auto and homeowner’s insurance by 20-50% or more? Is it fair that the people who may afford it least have to pay more? That is something open to debate, BUT…

It’s also been determined that 79% of credit reports contained errors errors of some kind. Twenty-five percent of credit reports contained serious errors that could result in the denial of credit.
In other words, many people are paying the toll because the information on their credit report is grossly inaccurate. If you don’t know what’s on your credit report, how to analyze the information or how to raise your credit scores you may be woefully overpaying for some of the biggest items in your families budget. Be proactive, make sure your score is as high as it can be and realize the savings you deserve.

Daniel J. Poulos
Account Executive
[url][email protected][/url]