Chase Letters To Clients Contradict Their Past and Future Settlement Policy
This is an interesting example of how creditors try to influence their cardholders to PAY UP IN FULL on their credit card debt. As more and more people enroll their credit cards into debt settlement programs, more and more creditors will be combating the program, and attempting to collect the debts directly, via their “in-house settlement center”, or by referring them to a “credit counseling center”.
As a recent example (view this settlement offer by Chase), Chase has been sending out letters to their customers notifying them that they have been contacted and notified, that they are being represented by a debt settlement company in connection to their Chase account. The bold title of their letter states, “Chase doesn’t deal with debt settlement companies.” Attached, you will also find a settlement from Chase, as recent as today, and for 25% of the debt amount!
The letter does go on and suggest, and ask, that the client does in fact contact Chase directly to learn more about their “interest rate reduction” programs, as well as get a “free referral to an accredited, non-profit credit counseling organization.”(Credit card companies started credit counseling companies like CCCS and CCCS receives compensation from them.)
Let this serve as an education tool, to help make you the client aware of these letters you may receive, as we’re all very aware Chase isn’t the only creditor sending these letters out. Knowing what to expect from creditors and their fear tactics will enable you to successfully complete your debt settlement program so you can reap the rewards of payments you can afford to pay.
By knowing about fear tactic letters to try and get you to continue making high interest payments to them, or their majority owned counseling center, will allow you to stay the course to repairing your financial future.
Creditor will do, say and write just about anything they can to potentially get your hard earned money, each and every month…interest and all, so you can see why they don’t like debt settlement alternatives, but they eventually agree to lowered settlements, and they have been doing so for years, as in the case of this 25% settlement offer.
To find out what you qualify for, call 678.561.DEBT (3328) or visit http://www.debtmanagementguys.com and fill out the form to be contacted by one of our representatives.
(Don’t forget you can click the “CALL ME” button to be connected with a live representative, after entering your name, phone number, and the connect button.”)
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Debt Settlement in 47 States, including Rancho Santa Margarita, CA, Miami FL, and Phoenix AZ
Debt Management Guys can counsel you on debt management and debt settlement programs tailored to your state and financial scenario.? Currently debt settlement is very high in Rancho Santa Margarita, CA, Phoenix, Arizona, and Miami, Florida, and we can assist consumers in 47 states.
To find out what you can settle for in a customized payment that you can afford, call? 678.561.DEBT or visit our homepage to click the call me button to have us connect you with a live representative toll free.
Simply click call me twice on the home page, and enter your name phone number, and don’t forget to? hit the CONNECT button.? With rates as low as 0%, we have different options for your credit cards, personal loans, medical bills, collections, and judgments over 6 months old.
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How Can a DMP Lower My Interest Rate?
Wondering how a debt management plan works? Its easier than you think. Your credit card company won’t tell you that you can get a lower interest rate in a debt management plan because they want you to pay the full balance back at higher interest rates. If you can afford the payments but your interest rate is too high, you may want to consider a dmp? if contacting the bank has caused little to no success. However, you must know that enrolling your credit card balances in a debt management plan requires your cards to be closed, meaning you simply cannot charge on that card until the balances are paid off. The important thing to keep in mind is maintaining timely payments since 35% of your credit score is measured by not missing payments. Also, in a dmp you can pay more than the recommended balance as there is no prepayment penalty.
What Might Your Interest? Rates Drop To?
(Keep in mind these are subject to change at any time)
- Capital One 7.4%
- Bank of America 9.0%
- Chase 6% or 10% depending upon the balance
- Juniper? now a case by case scenario but was previously 5.9%
- HSBC (Household Bank) 9%
- Wells Fargo 7.3%
- American Express 7.90%
- FIA Card Services 15.90%
- Wells Fargo Card Services 7.30%
- Citgo/Citibank 9.90%
- Discover Card 6.99%
- Macys-All Divisions 8.00%
- Bank One – First USA 6.00%
- Direct Merchants Bank 9%
- Fashion Bug * 8.00%
- HSBC/Discover 9.90%
- First Premier Bank 0.00%
- First National Bank of Omaha 9.90%
- Goody’s/WFNNB 10.00%
- Providian National Bank 10.00%
- and many more.
Keep in mind that these rates are subject to change at any time by the creditors. Some may be higher, some may be lower. The only way to find out what you qualify for is by contacting us today.
Now, if you are currently more than two months behind on your payments, then your best option may be a debt settlement program
To find out what you can qualify for, contact the Debt Management Guys today at
1.800.442.8004 ext 100 today.
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People can easily be confused on the differences between a debt management plan and debt settlement. A debt management? plan, (dmp), or credit counseling, which is simply paying back your full balance at lower interest rates that are pre-negotiated.? Debt settlement is for people who are behind on their payments and want to settle for roughly half of their balance, if not less.
Here are links to the SAME video on different video networks where Michael Hart explains some of the key differences.
Daily Motion Debt Management Guys Video
Yahoo Debt Management Guys Video
Myspace Debt Management Guys video
Blip Tv Debt Management Guys Video
Veoh Debt Management Guys Video
Again, these are all the SAME video on different networks. If you are currently on any of these social networks, don’t forget to add our rss feed or suscribe to our videos. We hope you will learn something from them.
As always, if you would like to speak to one of our live representatives, simply visit our homepage at? http://www.debtmanagementguys.com and click the “call me” button to enter your phone number to be connected with a live person.
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How Is My Credit Score? Calculated? By A Fico Score?
Understanding how a credit score is calculated is key to understanding the debt management and debt settlement process.
Your credit score is a number generated by a mathematical algorithm — a formula — based on information in your credit report, compared to information on hundreds? of millions of other people. The resulting number is an? accurate prediction of how likely you are to pay your bills.
Credit scores are used extensively, and if you’ve gotten a mortgage, a car loan, a credit card or auto insurance, the rate you received was directly related to your credit score. The higher the number, the better you look to lenders. People with the highest scores get the lowest interest rates generally but not always for credit cards.
What Are The Scoring Categories?
Lenders can use one of three credit-scoring models to determine if you are creditworthy. Different models can produce different scores since there are three credit bureaus: Equifax, Experian, and TransUnion. Different lenders use some scoring models more than others. The FICO score is probably the most popular scoring method.
Its scale runs from 300 to 850. If you have your credit pulled and you receive a zero, its because you probably don’t have at least three credit lines or “trade lines” open that have not been open for at least a year. Credit lines can be a credit card, car loan, personal loan, phone bill, and many other things. The majority of people will have scores between 580 and 800. A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data from Fair Isaac Corp., a California-based company that developed the first credit score as well as the FICO score.
Fair Isaac reports that the American public’s credit scores break out along these lines:
|
Credit score
|
Percentage
|
| 499 and below | 2 percent |
| 500-549 | 5 percent |
| 550-599 | 8 percent |
| 600-649 | 12 percent |
| 650-699 | 15 percent |
| 700-749 | 18 percent |
| 750-799 | 27 percent |
| 800 and above | 13 percent |
Currently, each of the three major credit bureaus uses their own version of the FICO scoring method — Equifax has the BEACON score, Experian has the Experian/Fair Isaac Risk Model and TransUnion has the EMPIRICA score. The three versions can come up with varying scores because they use different algorithms. (Variance can also occur because of differences in data contained in different credit reports.)
That could change, depending on whether a new credit-scoring model catches on. It’s called the VantageScore.?Equifax, Experian and TransUnion collaborated on its development and will all use the same algorithm to compute the score. Consumers can order their VantageScores online for a free trial. Its scoring range runs from 501 to 990 with a corresponding letter grade from A to F. So, a score of 501 to 600 would receive an F, while a score of 901 to 990 would receive an A. Just like in school, A is the best grade you can get.
What’s so important?
No matter which scoring model lenders use, it pays to have a great credit score. Your credit score affects whether you get credit or not, and how high your interest rate will be. A better score can lower your interest rate, and ensure you get hired for a job as more and more employers are checking credit as measure of a person’s caliber.
The difference in the interest rates offered to a person with a score of 520 and a person with a 720 score is 4.36 percentage points, according to Fair Isaac’s Web site. On a $100,000, 30-year mortgage, that difference would cost more than $110,325 extra in interest charges, according to Bankrate.com’s mortgage calculator. The difference in the monthly payment alone would be about $307.
Protect Your Score
If you rented an apartment, got braces, bought cell phone service, applied for a job that involved handling a lot of money, or needed to get utilities connected, there’s a good chance your score was pulled.
If you have an existing credit card, the issuer is likely to look at your credit score to decide whether to increase your credit line — or charge you a higher interest rate, according to a credit scoring study by the Consumer Federation of America and the National Credit Reporting Association.
How Your Credit Score Is Determined
Just what goes into the score? Everything in your credit report, with different kinds of information carrying differing weights, says Fair Isaac Corp. Public Affairs Manager Craig Watts. The FICO-scoring model looks at more than 20 factors in five categories. (The VantageScore relies on slightly different factors. The Bankrate feature “New Vantage credit score now online” compares the FICO score with VantageScore. )
1. How you pay your bills
(35 percent of the score)
The most important factor is how you’ve paid your bills in the past, placing the most emphasis on recent activity. Paying all your bills on time is good. Paying them late on a consistent basis is bad. Having accounts that were sent to collections is worse. Declaring bankruptcy is worst. If you are already late on your payments and have over $10,000 in credit card debt, you should get a quote for debt settlement since you have already hurt your score.
2. Amount of money you owe and the amount of available credit
(30 percent)
The second most important area is your outstanding debt — how much money you owe on credit cards, car loans, mortgages, home equity lines, etc. Also considered is the total amount of credit you have available. If you have 10 credit cards that each have $10,000 credit limits, that’s $100,000 of available credit. Statistically, people who have a lot of credit available tend to use it, which makes them a less attractive credit risk.
However, carrying a lot of debt doesn’t mean you’ll have a lower score “It doesn’t hurt nearly as much as carrying balances close to the maximum limits on your account. People who consistently max out their balances are perceived as riskier. People who never use their credit don’t have a track history. People with the highest scores use credit sparingly and keep their balances low.”
3. Length of credit history (15 percent)
The third factor is the length of your credit history. The longer you’ve had credit — particularly if it’s with the same credit issuers — the more points you get.
4. Mix of credit (10 percent)
The best scores will have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. “Statistically, consumers with a richer variety of experiences are better credit risks,” Watts says. “They know how to handle money.”
5. New credit applications (10 percent)
The final category is your interest in new credit — how many credit applications you’re filling out. The model compensates for people who are rate shopping for the best mortgage or car loan rates. The only time shopping really hurts your score is when you have previous recent credit mishaps, such as late payments or bills sent to collections.
“Then, looking for new credit will be seen as an alarm because statistically, before people declare bankruptcy and default on everything, they look for a way out. Also, if you have a very young credit file, an inquiry can count for more than if you’ve had credit for a long time.
What doesn’t count in a score
The scoring model doesn’t look at:
* age
* race
* sex
* job or length of employment at your job
* income
* education
* marital status
* whether you’ve been turned down for credit
* length of time at your current address
* whether you own a home or rent
* information not contained in your credit report
A lender may consider all those factors when deciding whether to approve a loan application, but they aren’t part of how a FICO score is calculated,
Credit scores are not perfect
The major drawback to credit scoring is that it relies on information in your credit report, which is quite likely to contain errors. That’s why it’s critical that you check your credit reports annually, or at the very least three to six months before planning to buy a house or a car. That will give you sufficient time to correct any errors before a lender pulls your score.
The need for accuracy in credit files is one reason why it’s good for consumers to learn about credit scores. The idea is that checking up on your score and tradelines help to correct errors quickly. If consumers can check the accuracy of their own reports, they save thousands of dollars.
To check your credit report today, try a free trial with GoFreeCredit
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