Credit Card Counseling Services
Assume you or someone you know has had debt/credit problems in the past. The question is, 'What can you do about it now?' It wasn't an overnight problem; there won't be an overnight solution. Simple Credit Counseling Service is here to guide you with credit card counseling services that can help with your debt management.
Credit reputation is very important. Restoring that reputation should be a priority. Poor credit can have a negative effect on the three major areas of your life: where you live, where you work, and your ability and cost to get future credit.
Two of the most important things to remember about credit repair are:
It IS a do-it-yourself job.
There are NO quick fixes.
Be proactive about your credit and credit card debt situation. Request all three of your credit reports annually, and take appropriate steps to make sure your information is accurate. Beware of credit scams and organizations that claim they can 'fix' your credit. Take time to re-establish credit while managing and maintaining it as you begin to get your good credit back.

How to Obtain Your Credit Report
Be proactive about your credit situation by annually requesting your credit report from ALL three of the following major credit bureaus:
Equifax Credit Information Services
1-800-685-1111
www.equifax.com
Experian (TRW)
1-888-397-3742
www.experian.com
Trans Union Corporation
1-800-888-4213
www.transunion.com
You are entitled to a free copy of your credit report IF a company takes adverse action against you, such as denying you credit, insurance or employment. You must request it within 60 days of receiving the notification from the one credit bureau that provided the information. To obtain your free report, follow the instructions received from the credit grantor in the notice or mention your denial to the credit reporting agency.
In addition, you're entitled to one free report per year from each of the three credit bureaus IF you certify in writing that one of the following situations applies to you:
You're unemployed and plan to look for a job within 60 days
You're on welfare, or
You're a victim of fraud or suspect you're a victim of fraud.
Call the above toll-free numbers for the current mailing address for each of the three bureaus, and then mail your request to each.

Credit Reports 101
A credit bureau is the most common type of Credit Reporting Agency (CRA). There are three major credit bureaus (Equifax, Experian and TransUnion) that gather and sell information about you. The information that each credit bureau has may vary, and it is compiled in what is frequently referred to as a credit report. Credit bureaus collect the following four basic types of information:
Identification and employment - includes your name, address, birth date, Social Security number, and employer.
Payment history - lists your accounts with different creditors and shows how much credit is extended and how you repay them (on-time or late). Collection activity may also be included.
Inquiries - lists creditors, businesses or persons who have requested your credit history.
Public record information - events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may be included in your report.
You have the right to know what is contained in your report as per the Fair Credit Reporting Act (FCRA). The FCRA is designed to promote accuracy and ensure privacy of your information, in addition to outlining dispute procedures if you find errors, you can initiate a credit score repair.
It is recommended that everyone requests and reviews all three credit reports once per year, and three to six months before applying for credit for a major purchase (house, automobile, etc.). This gives you time to correct any inaccuracies and repair your credit score. It is important to note that only the passage of time can remove negative information that is accurate. Generally, accurate negative information can remain on your credit report for seven years and bankruptcy information may be reported for 10 years. The standard method for calculating the seven-year period is seven years from the date the negative event took place.
If you find inaccuracies in your report, both the credit bureau and the provider of the information, such as bank or credit card company, have responsibilities to implement a credit score repair procedure and correct the information. To protect your rights under the FCRA, dispute the information by contacting both the credit bureau and provider in writing, certified return receipt, explaining what is inaccurate. Supply copies of supporting documents, and keep copies of what you send. The item in question must be investigated usually within 30 days. If the disputed information cannot be verified, it must be deleted; if it is incorrect, it must be corrected. You will receive written results when the investigation is complete and a free credit report if the investigation resulted in a change. You also have the right to add a written explanation to your report.
For more information about your rights under the FCRA, refer to this site:
http://www.ftc.gov/bcp/conline/pubs/credit/fcra.htm.

?Fair Debt Collection Act
The Fair Debt Collection Practices Act is the federal law that outlines how and when a debt collector may contact you. To summarize this law, a debt collector may not call you before 8 a.m. or after 9 p.m. or at work if the collector knows your employer does not approve of the calls. Also, a debt collector may not harass you, make false statements, or use unfair practices in an attempt to collect the debt. Debt collectors must honor your written request to stop further contact, although this does not make the debt go away if you actually owe it.
Consider keeping a log by the phone to document collection calls. If you find a debt collector has violated the law, contact your state attorney general's Office for Consumer Protection and the Federal Trade Commission (FTC) Bureau of Consumer Protection at
1-877-FTC-HELP (1-877-382-4357) or file a complaint online at http://www.ftc.gov
To read more about the Fair Debt Collection Practices Act:
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Strategies to Re-establish Credit
Credit reputation is very important. Restoring that reputation should be a priority. There is no rule for how long it will take following difficulties to be considered by lenders. It is dependent on the seriousness of the problem as well as the type of credit problem and time period involved.
Consider the following suggestions while keeping in mind that rebuilding credit takes time and patience.
Banking
Open and maintain checking and savings accounts - build a good relationship with a financial institution (bank, credit union, etc.) by showing a pattern of financial responsibility.
Balance your checkbook monthly, don't bounce checks, and regularly make deposits in your savings account. Bounced checks may pose a problem; make sure they are paid before attempting to open new accounts.
Take out a small loan from your financial institution using your savings or Certificate of Deposit (CD) as collateral, save the money (don't spend it) and make on-time payments to build your credit history. Make sure the lender will report the loan to the credit bureaus.
Pay any outstanding debts - if you owe it, pay it. If you cannot pay the bill in full, contact the creditor to set up a payment plan.
Devise a budget to ensure new credit purchases are affordable, and live with it. If you cannot afford a new debt now, wait and save. For ways to create a realistic spending plan, Refer to our separate section on budgeting.
Credit Reports
Check your credit reports from the three major credit bureaus once per year to insure accuracy and promptly dispute any errors.
Refer to section on How to Obtain Your Credit Report.
Start a file called your non-traditional credit history with all of your positive credit/payment information that is not found in your credit report. Reporting to the credit bureaus is only voluntary and there may be good payment references not reflected in your report such as rent, certain utilities, auto insurance, medical bills, etc. Save receipts and statements for your file, and ask your landlord for a letter of credit reference. Show this to the loan officer or bank manager when you are pursuing a loan.
Credit Use - when you are ready, begin to apply for credit after careful thought and research, and use it appropriately. Start small and build slowly by:
Applying for a department store card or gasoline card.
Financing a purchase through a local dealer or store.
Applying for a secured credit card through your bank or credit union. A secured credit card can be a good start. It requires you to make a deposit that is used as collateral to secure a line of credit.
Assuring the lender that you can handle the debt and are less of a risk. You may need to provide collateral, make a larger down payment, have a co-signer or offer a payroll-deducted loan or automatic bank draft for payment. If you have a co-signer, make sure the loan is being reported to the credit bureaus in your name and not just the cosigner's name.
Not applying for too many credit cards at once. Applications for credit are called inquiries and are listed on your credit report for up to two years. Too many inquiries can be a red flag to creditors.