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Credit Report Repair - Credit Card APRCredit Cards: Incorrectly Reported Late Payments Result in High Interest (APR) John came to us in January with serious credit card problems. A temporary drop in wages, a son in college, and "life in general" had swollen John's credit balances to more than $35,000 distributed among four different creditors. While the sum was more than John would have liked on his credit accounts, he had planned for the revolving accounts carefully, applying for - and getting - reasonable interest rates (for example, a 0% introductory APR for 9 months). Perfect? No. But for John, carrying this debt at 0% was the best solution for the time being. Then the mail came. John opened his bills, and... ARGH!!! The average APR interest had magically increased — a whole bunch! John did some quick math — he was shelling out $6,650/year in interest alone on his credit cards. Rather understandably, he was furious that the interest rates had been hiked. When he dug around, John discovered that a few months prior, three incorrect late payments had been added to his credit reports. The next time his credit card companies ran a credit check, John's damaged credit score triggered a "fine print" clause. The creditors then raised interest rates to the maximum allowable — about 29% APR! John put Veracity Credit Consultants on the case. Within sixty days, the incorrect late pays were removed from his reports. Just as helpful, derogatory credit information on older accounts was also cleaned up. This raised John's credit score by 51 points. Armed with an optimized credit score, John contacted the lenders and demanded they reduce his rates. The creditors could hardly ignore such accurate, clean credit history, and in all cases the creditors rewarded John with the interest rates he rightly deserved. The savings to John? A significant $4,375.00 in the first year of interest payments! Back to Main Case Studies Page | Previous | Next |
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