Q. How should I proceed to draw my own credit reports and FICO scores and then possibly correct errors in my report and thus improve my credit score?
A. before applying for any business loan or mortgage where
your personal FICO score will influence the lender's decision you should take
the following action: Go to http://myfico.com
on the internet. There are three credit reporting agencies, Trans
Union, Experian and Equifax. For around $45 you can draw your own complete
credit report from each agency along with your FICO score from each one.
The process usually takes about 30 minutes. You can download the reports
and FICO scores, along with a "request for investigation" (complaint) form from
each reporting agency. Drawing your credit this way WILL NOT
count as a credit inquiry and thus will never lower your credit score.
Next, review each credit report in great detail. Look for
accounts or credit cards that you never held. Look for identity theft.
Search for balances that you paid off, but still appear on the report.
For example: You were late on 5 payments 2 years ago with ABC credit card,
but you paid off the balance of $2,300 in full 4 months ago. The balance
is still showing on your report ad $2,300 owed. You can get the balance
removed. The credit company will not remove the entry on your report that
you were late in paying, but the lowering of the balance to $0 will invariably
improve your credit score. YOU MUST list the code number of the
specific account in question and the reason for removal on the
complaint/investigation request form furnished with the credit report you
downloaded. YOU MUST use the separate form for each agency.
If necessary, make extra blank copies of the investigation forms. If these
forms were not downloaded with your credit report, then there should be an area
at MYFICO.COM where you can download the forms.
When you have reviewed the reports from all three agencies and filled out the
investigation forms correctly, make a copy of the forms and then mail them
to each of the three agencies. Mail them via USPS Registered mail with
Return Receipt Requested.
Enclose the following letter:
=============== LETTER ONE ================
Your Name
123 Your Street Address
Your City, ST 01234
Date ________________-
Big Credit Bureau
Their Street Address
Some City, ST 56789
Dear Credit Bureau,
This letter is a formal complaint that you are reporting inaccurate and
incomplete credit information. I am distressed that you have included the below
information in my credit profile and have failed to maintain reasonable
procedures in your operations to assure maximum possible accuracy in the credit
reports you publish.
Credit reporting laws ensure that bureaus report only 100% accurate credit
information. Every step must betaken to assure the information reported is
completely accurate and correct.
The following information therefore needs to be re-investigated. I respectfully
request to be provided proof of this alleged item, specifically the contract,
note or other instrument bearing my signature. Failing that, the item must be
deleted from the report as soon as possible
DISPUTED ITEM HERE OR A LISTING OF THEIR DISPUTE FORMS. Fill
out and number their dispute forms from 1 to ____. Make copies of all documents
before mailing
The listed item is completely inaccurate and incomplete, and is a very serious
error in reporting. Please delete this misleading information, and supply a
corrected credit profile to all creditors who have received a copy within the
last 6 months, or the last 2 years for employment purposes.
Additionally, please provide the name, address, and telephone number of each
credit grantor or other subscriber. Under federal law, you have 30 days to
complete your re-investigation. Be advised that the description of the procedure
used to determine the accuracy and completeness of the information is hereby
requested as well, to be provided within 15 days of the completion of your
re-investigation.
Sincerely,
your signature
Your Name
SSN# ________________
Within 3 to 4 weeks the disputed items will be corrected and you
will received a new free updated credit report from each agency. You will
not receive a new credit score. You will have to go back to myfico.com to
obtain this. If you DO NOT receive an answer with 30 days from the
time they received your dispute (request for investigation letter, then send
this second letter along with a copy of your original dispute forms.
========= LETTER 2 === (IF NEEDED) =========
Your Name
123 Your Street Address
Your City, ST 01234
Date
Big Credit Bureau
Their Street Address
Some City, ST 56789
RE: Dispute Letter of: ________________________
Dear Credit Bureau,
This letter is formal notice that you have failed to respond in a timely manner
to my dispute letter of
__________, deposited by registered mail with the Post Office on that date.
As you are well aware, federal law requires you to respond within 30 days, yet
you have failed to respond. Failure to comply with these federal regulations by
credit reporting agencies are investigated by the Federal Trade Commission (see
15 USC 41, et seq.). I am maintaining a careful record of my communications with
you on this matter, for the purpose of filing a complaint with the FTC should
you continue in your non-compliance.
I further remind you that, as in Wenger v. Trans Union Corp.,
No. 95-6445 (C.D.Cal. Nov. 14, 1995), you may be liable for your willful
non-compliance. Be aware that I am making a final goodwill attempt to have you
clear up this matter. You have 15 days to cure.
For your benefit, and as a gesture of my goodwill, I will restate my dispute.
The following information needs to be verified and deleted from the report as
soon as possible:
DISPUTED ITEM HERE OR A LISTING OF THEIR DISPUTE FORMS.
Fill out and number their dispute forms from 1 to ____. Make copies of all
documents before mailing
The listed item is completely inaccurate and incomplete, and is
a very serious error in reporting. Please delete this misleading information,
and supply a corrected credit profile to all creditors who have received a copy
within the last 6 months, or the last 2 years for employment purposes.
Additionally, please provide the name, address, and telephone number of each
credit grantor or other subscriber.
Under federal law, you had 30 days to complete your re-investigation, yet you
have failed to respond. Do not delay further. Be advised that the description of
the procedure used to determine the accuracy and completeness of the information
is hereby requested as well, to be provided within 15 days of the completion of
your re-investigation.
Sincerely,
your signature
Your Name
SSN# _______________________
This procedure is the proper way to correct your credit
report. If there are errors which are against you, your credit
FICO score will probably be raised (often significantly). Your
credit score is certainly important enough to spend significant time on.
Q. I want to buy an office building for $600,000. It has been appraised recently for
$800,000. It a lender will loan 65% LTV (loan to value), will the lender calculate the LTV on $800,000 or the
purchase price of $600,000.
A- Most likely on the purchase price of $600,000. The old practice of calculating the LTV on
appraisals (which were sometimes inflated) has generally been discontinued. However, if the lender's fresh
appraisal also shows that the building is worth more than $600,00, the lender might increase the LTV percentage
(possibly to 68% from 65%) thus giving you, the borrower, some additional funds.
DISCLAIMER - The material on this page and throughout the web site is for informational
purposes only and covers a
wide variety of information on various property and business financing topics.
Although some of the information might involve tax, legal, accounting or similar issues, Barclay
Associates
absolutely does not intend this web site to be an advisory service web site. Our opinion on
any financial matters
may not fit your own particular circumstances. Cap Rates and property valuation calculations are our
best estimate,
but are only estimates and may vary in specific situations. Barclay Associates is not an investment advisor and any copy on this page or any other page on our website is purely informational and is not to be considered investment advice. Barclay Associates is not, and does not
claim to be, professional property appraisers. We never give legal or tax related advice.
We strongly encourage you to consult with your own professional advisors (attorney, accountant,
appraiser, Realtor etc.) concerning any
transaction involving commercial mortgages or business financing. Barclay Associates
publishes this
page on our website in response to many requests from current and prospective clients. The
opinions and
information contained on this page are based on our experience and will apply to many situations. However,
any
statements or information contained on this page is strictly the opinion of Barclay Associates, and
there may be
exceptions which makes the information inapplicable to your own particular situation. Barclay
Associates
will not be held responsible in any way, and will be held harmless from, any decisions made by the reader
based on
information on this page, which might result in a financial or other type of loss.