Fannie Mae is The Federal National Mortgage Association (FNMA). Fannie Mae operates in the U.S. secondary mortgage market and works with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates.

Fannie has been conducting a survey called the “Fannie Mae National Housing Survey” for the following times: first quarter 2011, fourth quarter 2010, January 2010, June 2010 and December 2003.  The survey covers opinions on owning and renting a home, current household finances, view of U.S. finance system and confidence in the economy. The latest surveyed homeowners and renters from January to March 2011. read more »

I recently received this question from a consumer regarding a rumor they heard about how disputing credit information impacts their FICO credit scores…

“I’ve read on the Internet that when someone disputes information on their credit reports their credit scores will improve because the disputed item no longer counts in their scores.  Is that true”

As you’ve probably figured out by now, there’s a enormous amount of information about credit scores floating around on the Internet.  Some of it is accurate, a lot of it is not.  This consumer’s question is actually a good one because there is variable treatment of credit information when it’s being disputed.  But, it’s not as simple as saying, “no, it doesn’t count in your score while it’s in dispute.”  Here’s the truth on the matter…

First off, the credit reporting agencies aren’t stupid.  Second, FICO isn’t stupid.  They know that ignoring a piece of negative credit information simply because the consumer doesn’t agree with it isn’t a good idea.  If that were actually true then consumers would challenge everything they don’t agree with and then go out an apply for a loan while the items are being investigated.  Sorry, it doesn’t work that way.

There are two different types of consumer disputes, the initial dispute and the persistent dispute.  The initial dispute is the first time a consumer challenges the accuracy of a credit item.  Normally the credit bureaus will post narrative text that states the consumer disputes the account and that they are in the process of investigating its accuracy.  If the investigation comes back verifying that the credit data is, in fact, correct then that initial dispute text is supposed to be removed.  If the consumer still challenges the accuracy of the data the bureaus will often post persistent text with the account stating the consumer disagrees with it.  And, of course, the consumer can always add a longer 100 word statement to the credit report explaining their side of the story.

The initial dispute can change how the credit scoring model treats the account, but it’s certainly not fully ignored.  Anything negative or debt related is temporarily bypassed while the initial dispute is conducted.  This can sometimes cause the score to increase, although you wouldn’t know that, and it might seem like an opportunity for the consumer to pull a fast one on their lender by trying to time an application to coincide with the dispute.  But, lenders aren’t stupid either.

When a lender pulls your credit report they can see that you’re disputing something.  And since they’re privy to this “while in dispute” strategy many of them have built in policies that will kick out an application submitted by a consumer who has an active dispute in process.  Fannie Mae, the mortgage giant, is one of them.  Point being, it doesn’t really matter how good your score may be…the fact that you’re disputing potentially negative information isn’t a secret and lenders will want your dispute to be finalized before they move ahead.

Look, nobody blames anyone for trying to get a better FICO score.  We all want great scores, right?  But, I have a much better “score improvement” idea…earn great scores by paying your bills on time and staying out of credit card debt and you won’t have to try and beat the system.  You’ll pay lower interest rates, lower insurance premiums, and be treated much better by your lenders.  And, good scores tend to persist because once you’ve gotten a taste of low interest rates you’ll never want to go back to sub-prime land again.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit contributor for Mint.com, and the author of the “credit rating” definition on Wikipedia.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  He has served as a credit expert witness in more than 70 cases and has been qualified to testify in both Federal and State court on the topic of consumer credit.

For some reason, this World Cup is more popular in the United States than ever.  The 2010 FIFA World Cup in South Africa lasts almost a month and for Soccer fans the passion is unbelievably high.  It is new for many of us here in America and unfortunately for some diehard fans; it can be very distracting.

I have a friend of mine who says his credit score goes down almost 50 points every World Cup because he is too distracted to pay his bills.  It’s not that he doesn’t ultimately pay his bills; he just lets it slip past the due date.  It’s that late payment ding on his credit report that lowers his credit score.

Many of us in America might find this hard to believe, but I can understand why this happens.  Being new to Soccer, I will say this World Cup has me addicted.  I have watched every game.  Some games are very early in the morning and others I watch on DVR into the late hours of the night.  I am reading everything I can about it and following the charts and statistics.  Even given that, I am nowhere near the enthusiasm of some Soccer fans, especially those with immigrant and family ties to other countries. Yet, I have found myself behind on simple things like my blogs.

The problem is, the World Cup is almost a month long from start to finish.  There is very little down time.  Have you ever tried to segregate parts of the Internet to avoid accidentally seeing sports scores on say Google News?  What about telling friends and colleagues: “Say nothing about the World Cup, not a word”.  It’s not easy to wait until after work to watch a recorded game.

So, if you find the World Cup has you paying your bills maybe next week or perhaps after the finals of the World Cup, then know you may have years of a lower credit score.  I know the anxiety and tension might be high, but take a deep breath and pay your bills.  You’ll be glad you did, even if, during the excitement of the World Cup.  Also, don’t ignore your credit monitoring or identity theft alerts either.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

If you tune into the Oprah Winfrey show today and for the next three Wednesdays, you’ll catch The Debt Diet and watch me help Lisa and Steven Bradley, a North Carolina couple, get their lives back in order.  That’s not an overstatement.  Many people are in the same boat the Bradleys were in a few years back.  They are spending more than they are making, feeling ashamed and embarrassed and are not sure what to do to right their ships.  Their credit reports are a mess and their credit scores in the tank.  They need help.

The Debt Diet, for the Bradleys and so many others, was the right tool.  It taught them to face their problems, to take action (a concept the Smart Credit users are right at home with) to move their balance sheets in the right direction, and that having some cash in the bank feels SO MUCH BETTER than having yet another pair of shoes in the closet or another trinket on the shelf.  If you need personalized Debt Diet coaching, you can find it on my website JeanChatzky.com.  And, of course, if it’s your credit score that needs work, I hope you’ll activate the Score Builder app included in your SmartCredit membership.

Jean Chatzky – financial expert and partner with SmartCredit.com

Jean Chatzky has partnered with SmartCredit.com to bring you her Score Builder App, a personalized program for 120 days to a better credit score.  Jean also has a powerful Debt Diet program that helps people get out of debt.

Jean is America’s favorite money coach, an award-winning magazine and newspaper columnist, and the best-selling author of seven books, including Money 911: Your Most Pressing Money Questions Answered, Your Money Emergencies Solved, Pay it Down! Debt-Free on $10 a Day, and The Difference: How Anyone Can Prosper in Even the Toughest Times.  You can visit her web site at www.jeanchatzky.com

The government has broad access to your credit report, but rarely does.

Local, state and federal governments have broad rights to access your credit report and in some cases, put things on it.  However, you might be surprised how few times the government actually looks at your credit report.  They mainly use it to aid in verifying your identity when you apply for a government service or job, which is entirely in your control.  It is also used by the courts to post judgments, including small claims cases, but these are infrequent as well.

The Internal Revenue Service can access your credit report in asset searches or to report notices of tax liens.  Contrary to popular belief this is also infrequent and only when they conduct an investigation.

Law enforcement has instant access to your credit report to aid in their investigations.  The U.S. PATRIOT Act, as modified in 2003, under section 126 expands the Department of Home Land Security, Federal Bureau of Investigations and other law enforcement agencies ability to obtain your credit report by simply certifying they will use it “in connection with their duties to enforce federal law”.  Note the use of the word “federal”.  States have their own rules to access your credit report as well.  Section 126 does not require any investigation be related to terrorism or a violent criminal offense.  There is also no notice of law enforcements access to your credit reports that are permitted under 15 USC §1681b(a)(1).  This means you will not get a credit monitoring alert and your credit score will not be affected.

Other ways government agencies can use your credit report is to judge your credit and verify identity for such things as student loans and loan guarantee programs as well as ways to verify your information if you apply for governmental assistance programs, such as disaster relief, welfare or Medicaid.

State and local governments generally use your credit report for criminal investigations, warrants, court judgments, small claims, bankruptcy, collections for child support, and your employment.

How can SmartCredit.com help?

Not all judgments and liens, especially from the Internal Revenue Service, are accurate.  Smart Credit has both identity protection and credit monitoring to keep you informed.  Be proactive about your credit report; make sure it is the best it should be before you apply for a government service or job.

Smart Credit not only includes all your credit scores, but includes our exclusive Jean Chatzky Score Builder App, which is a personalized 120 day plan to better credit, for the credit-challenged or those going from good to great credit.

Use Smart Credit’s innovative credit report and click on action buttons to talk directly with your creditors to get better interest rates, or to ask your creditor anything.  No need for phone calls, writing letters or looking up account numbers.  You can fix credit report errors, get goodwill corrections, recover from identity theft, replace a lost or stolen credit card or settle a debt all directly with your creditors.  It’s fast and effective!

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Hello and welcome to the Smart Credit Blog.

This is a place for everything credit, identity and finance.  We will answer common questions and tell you how SmartCredit.com can benefit you.  Which actions to take with our Smart Action Buttons and why.

We also encourage you to look through our Procrastinators Guide to Good Credit. It contains detailed information that can help your everyday financial needs and lifestyle.

We are also introducing our ‘Credit Resources’ section.  We have a mortgage and credit score & savings calculator.  You can visualize the impact that improving your credit score will have on your finances.  We will be adding more soon.

Thank you and welcome!

David B. Coulter – founder and CEO of Smart Credit