Choon Yong-Repairing and Building Credit.

Author of Book: Paul Mata
Date Read: January 2, 2025

Book Report

ACE Class Report #83 – Repairing and Building Credit.
Begin: 10/16/2024
Finish: 1/2/2025
Title: Repairing and Building Credit
Instructor: Paul Mata

Why did I take this class:
When we are incarcerated, our credit is greatly affected or completely annilated, thus lowering our credit score. This class teaches us steps to repair and build credit. This class also shows us how the credit agencies operates and our rights as consumer.

What I learned from this class:
Cleaning Up Your Credit Reports:
1) Obtain a copy of your full credit reports from all three credit bureaus with account numbers.
WWW.creditchecktotal.com – gives credit reports from all three bureaus.
2) Make sure your personal identifying information is correct and matches all three bureaus. Check names, SS #, birthdate, Address.
3) To Correct the spelling of your name, SS #, Birthdate, send notarized Affidavit that identifies the false or outdated information with your current drivers license and a copy of a utility bill or pay stub with your name on it.
– It is important to keep your home address updated with current creditors and the credit reporting agencies. Delete old home address and phone number (unless it is tied to any open or good account). It helps in the dispute process.
– Update and correct any personal information by phone, fax or mail before you send out any dispute letters.
4) Download a free pdf copy of the Fair Credit Reporting Act 15 U.S.C. so 1681 – Pay attention to sections: 604, 605B, 609, 611, 623 and Fair Debt Collection Protection ACT (FDCPA).
5) Opt out from prescreened offers. Opting out stops creditors and other nosey agencies from peeking into your credit files and verify information for investigations or collection activities. Opt out online at WWW.optoutprescreen.com.
6) Freeze / Suppress your Sage Stream (used to cross reference some of your information), Lexis Nexis, and Innovis consumer reports.
7) During credit repair process:
– Do not apply for any next credit.
– Do not add any new debt to existing accounts.
– Do not pay accounts late.
– Do not answer any calls from collection agencies.

Disputing Errors on Your Credit Report:
1) Remember to response to every debt collection and deny the debt until it is legally validated as being your responsibility. When you do not respond, you become responsible by default.
2) You are not disputing the existence of the debt. You are simply asking for it to be validated.
3) What can be disputed and potentially removed.
a) Collections; charge offs; late payments; medical collections; repossessions; inquiries; evictions; foreclosures, bankruptcy; student loans, bail bond collections.
b) Anything you say has been effected or created by identity theft.
4) Correct inaccuracies in your credit report and make sure old information is removed.
– Identify any incorrect information and initiate a dispute and potentially have it corrected or removed within 30 days. They have 30 days to confirm (verify) or deny issue. Document all efforts and correspondences.
5) Dispute with credit bureau first, then collection agencies or do it together. State only violations to the reported items in every letter, include a copy of your credit report pages that identify the accounts being disputed.
6) Dispute with Affidavit – an Affidavit is a written statement, confirmed by oath or affirmation for use as evidence in court. It is a statement of truth. Affidavits are required to be answered.
7) Freeze the following accounts:
a) Innovis – on their website.
b) Lexis Nexis – Legal and public records.
c) ARS – Advanced Resolution Services – provides legal information.
d) Sage Stream- Freeze it at WWW.sagestreamllc.com.
e) Chex system –
f) CoreLogic Credco – Legal public info.
g) Early warning Services – Check written.
h) Clarity Service.
Opt out online at WWW.optoutprescreen.com

When All Else Fails to Remove the Disputes:
1) You will need to negotiate with the creditor directly – or you can offer a settlement with the creditor.
2) When negotiating with the creditor your ultimate objective is to convince them to list the account as “Paid As Agreed”, “Current”, or “Account Closed – Paid As Agreed” with each credit bureau. Anything else will negatively impact your account.
3) Listings to avoid are “Paid”, “Paid Charge Off”, “Settled”, “Repossession”, or “Paid # of Days Late”. Most creditor will agree to alter how your account is being reported if settlement involves paying at least 70% of the amount due.

How to Build or Rebuild Your Credit:
1) Obtain 2-3 starter cards – Kohl, Capital One.
2) 4-5 Months later add 3-4 Authorized User trade lines.
3)With a paid for car, borrow the max against the auto. Make payments for 3 months and pay off the loan. Repeat 2 more times.
4) Apply for level 2 cards once the authorized user card is in place. Regular cards – Discover, Capital One, Citibank double cash. Utilization card – Lowes, Capital One, Citibank, Credit Union.
5) Most cards from level 2 will gradually increase your limit within 3-6 months.
6) With the high limit primary credit cards reporting, you should be able to secure 3 additional cards in the 5 figure range after 90 days.
7) Make payments on time, keep balance low an enjoy your new credit.

How will this class contribute to my success upon release:
This class taugt me a lot about how to manage my credit and finances. This will help me repair and rebuild my credit. This information has helped improve my analytical and critical thinking skills. Information learned can be convey to others when I volunteer my teaching and tutoring services the communities.