Archive for October, 2009
Thursday, October 29th, 2009
Whenever you apply for a loan on a car or house, or whether you apply for a credit or store card, your credit history will probably be looked at by the vendor. They do this to protect their investment; after all if you are doing business with someone then you would want to know about their financial history wouldnt you? So when you next apply for a financial product you should give a thought to any old debts (even if they are now cleared up), or even any missed payments that may show up on your credit history. But many people wonder how long negative information really stays on credit report and how much notice the lenders really take of it?
The question, how long negative information really stays on credit report, is not an easy one to answer. If it is a major financial disaster such as going bankrupt, then it can be there for about ten years. Although if the creditors are repaid, then many credit reports will take it off in around seven years. Of course this doesnt mean that you cannot deal with finance houses. Actually you should try to build up a good credit history after bankruptcy by taking out pre-paid credit cards etc. and always making sure that everything is paid up when it is due. This can make a great deal of difference to your credit score and help you to rebuild you reputation.
So how long negative information really stays on credit report is really dependent on the type of problems you were having. After all everybody has missed the occasional payment here and there and it may be that even if this is still on your credit history then it will not be looked on too badly by the credit company.
Of course it is not only negative information that is important, so wondering how long negative information really stays on credit report might not be the thing to be worried about. The credit score can also be adversely affected by a lack of credit cards etc, where the company can see that you have made payments regularly. So taking out credit can be a positive thing if you a good payer and can boost your rating. So the best way to maintain a good rating is too use the credit system and make sure that you always pay your bills on time and then whatever your credit history, you will be well on the way to making it better.
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Monday, October 26th, 2009
Thanks to a new federal law was launched in September 2005, everyone is entitled to one free credit report every year. This is for you to verify that your report does not contain any false, and so you can see how credit rates. Get your annual free credit report is as easy as going to the authorized source, www.annualcreditreport.com and requesting one.
Once you have your free report, what in the world do all those abbreviations, numbers and codes mean?! The most common system for scoring is the FICO score developed by Fair Isaac Corporation, and the number that determines the risk of extending credit to a person. Credit reports are divided into sections, identifying information, public records, credit history, and research in your credit report to creditors seeking to extend credit based on your credit score.
The identifying information includes your name, address and social security number. Make sure they are all correct. Normally this section will also include a list of your previous addresses, date of birth, telephone number, name of spouse, employer information.
The Public Records section is the section that hope has no information. This is where a bankruptcy or resolution be displayed in your report and hurt the rating more than anything in the report and take longer to repair.
The credit history section is the most confusing. It will list every creditor who has had business relationships, including accounts that have been closed and those that remain open, no balances and accounts that are making payments. Depending on the credit reporting agency you get your report, this section will actually be displayed differently in each report. Experian report shows “English” and said all in common sense terms such as “pay on time”, “paid 30 days late”, etc. Reports from other agencies might use numerical codes in a table that has to refer to another page to know what each code. Either way, make sure you agree with each creditors reporting to you and that is how you determine your score. If you have accounts that have no more credit cards or a loan that has been paid, but remains in its report as a revolving credit (money available to you when you pay down), call and write each company to ask them to close the entire bill and to report to credit agencies. Otherwise, it seems that you have all that money at his disposal, and that goes against your debt to income.
The section called “consultations”, and includes a list of everyone who has looked at your report. This will include credit companies have been in touch to request a credit card or loan, but also include what is considered “soft” inquiries. Investigations are soft promotional offers, such as a checking account retail store in your credit history to determine whether or not an email offering a credit card. Research smooth not hurt your overall credit score.
You can also obtain a copy of a credit report every time there’s been denied credit. This is because there is always the possibility of errors in his report, which prevented him from obtaining the credit you requested. Regardless of how you get your report, take time to review and find discrepancies (immediately call the creditors involved and straighten it) and close any accounts you no longer use, but are open and available to you in your credit report. Having your report will show you where you are if you’re thinking of going for a mortgage, new vehicle, or loan.
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Monday, October 26th, 2009
Traditionally, commercial loans were considered separately from reports of business owners personal credit. But that has changed as technology makes report generation more feasible, says Jordan Peterson, senior vice president of business banking at PNC Financial Services Group (PNC).
“In the past, banks have the technology to inform business loan data to credit bureaus,” says Peterson, but automation has become more common over the last decade. “There are deposits Business Bureau built by companies like D & B that many banks are now. Businesses report the repayment history and other members of this deposit can look at the time that provide the data to it.”
N UDRP
In other words, if supplies of bank information to an office of business data that is used as a resource by the credit bureaus, it is likely that information about your business history of reimbursement may actually influence your rating personal credit. The practice applies primarily to small private companies and new businesses, whose owners may ask for personal guarantees for credit. This means that not only self-employed persons, but also the owners of small limited liability companies and S-corporations.
It is difficult to ascertain, however, because there is no uniform policy on this issue. “It depends on which bank you have a loan and what information they do,” says Peterson. Of course you can ask your bank loan officer or bank manager what their policy on sharing data with business loan credit bureaus.
It compares the change in reporting business loan to the 1980s, when some banks expanded their loan portfolios to include more small-less than $ 100,000 to entrepreneurs. “Banks used to think it was too expensive to provide credit to small businesses. That’s when the credit rating was put on the table,” he says.
The evaluation of small business loans banks began to rely heavily on consumer credit scores at that time, because the personal payment history has proven to be a predictor of the likelihood that a company can repay their loans. “The bank really can not separate the business owner because the owner of the business units,” says Peterson.
Upward trend
Even if your credit history is not shared with bank credit agencies now will probably be in the future. With technology making data exchange easier and cheaper, banks increasingly expect more information on the loans they subscribe to, including details about how the candidates have done in the corporate lending.
Along with the reimbursement of personal and business loans in time, business owners seeking credit may benefit from establishing relationships with local bankers. “Having a lawyer who understands you and your company can help a lot, especially if you’re in an industry that has been severely affected by the recession,” said Peterson. And expect banks to ask for personal guarantees of loans, even for companies that are doing well despite the recession.
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Monday, October 26th, 2009
Like your personal credit history, credit rating of the company is determined by the credit reporting agencies – independent companies that assess your credit “score” based on factors such as payment history and debt burden.
However, its corporate credit ratings credit ratings differ from staff who:
* Your business score is based primarily on the timeliness of payments.
* Unlike a personal loan with multiple asset accounts may be positive, provided they are in good condition. This shows that your business is knowledgeable about managing their finances.
* Some information in its business profile can be self-reporting, which are not permitted in personal accounts. This creates a profile with the credit bureau, check their websites for details.
* Creditors of the companies are not required to report payments to agents, so if you’re interested in building a good grade, ask sellers if they are willing to report your payment performance.
It is advisable, then, for the report of its business from these agencies (see below) to verify the accuracy, while an idea of how credit agencies represent their company to potential lenders. When reviewing your credit reports, examine your:
Company Profile: Precision check details: name and age, address, phone, industry, number of employees and the state of incorporation. Much of this information is “self-reporting,” the sense of responsibility lies with the owner of the business to ensure that data is accurate and current.
Credit Note: Please note if your score is strong, average or poor. Companies reporting the use of different scoring methods, so their skills can not be the same. If the report provides the context for the score, see the vendor Web sites for more information on how to interpret the numbers.
Payment history: Make sure that your payment history is accurate. Pay within the terms established by their suppliers may be the most direct way to drive positive business credit rating. Search trends that lenders may flag, as a change in pay in full each month to make minimum payments. In addition, make sure they are represented all relationships with suppliers. If you have been making timely payments to a supplier or lender, to be reflected in your profile. Otherwise, you must contact the seller to report your payment history with them.
Uniform Commercial Code (UCC): Shows the mortgages and leases it has in place. See this information from the eye of a lender: Is it accurate? Can your company be perceived as more widespread?
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Tuesday, October 20th, 2009
Just the sound of the words “tax lien” sounds frightening. And, to quote a line from the 1986 version of “The Fly,” someone who is looking at a tax lien on a credit report should “Be afraid. Be very afraid.”
Why? Because any lien, but especially a tax lien can wreak havoc with their finances for years to come and impact also every major financial transaction they make.
When Uncle Sam wants money the government is due, it can put a lien on a taxpayer’s property that will remain on a credit report until the debt is settled. An individual with this type of burden can’t expect to make any profit from liquidating their assets and in some cases their wages may be garnished also.
Having Uncle Sam “liening” on you, pretty much makes the individual dead in the water financially, so to speak. There we go again with that saying about “death and taxes.” Working with the Internal Revenue Service on repaying a debt can help in resolving the situation and thus in reducing how long it stays on a credit report.
As long this mark on a credit report remains, an individual will have difficulty with their finances when it comes to applying for:
New credit cards
Mortgages
Refinancing
Car loans
Students loans
Rental property
When working to minimize a tax lien stays on record, it is probably best to consult a tax attorney or tax accountant. As previously discussed, this is a serious matter and consulting a professional can help in dealing with the situation.
In order to remove the lien and clearing the record from the credit report, the individual must pay off the debt, followed by a seven-year period. But just because the debt has been settled and the seven-year period has passed, don’t assume that the tax lien has been removed from the credit report.
A taxpayer should take the time to contact the three major credit bureaus Equifax, Experian, and Trans Union, to assure a tax lien is no longer part of their credit report.
The individual might find that the tax lien might still be listed because it was not reported as being paid by the Internal Revenue Service or because a credit bureau did not take the time to update an individual’s credit report. Regardless of whether a lien still exists, finding out it is still there when an individual goes to apply for credit or make a major purchase may come as a very unpleasant surprise.
Getting the government to clear a credit report involves working after the fact to resolve the problem. The better solution is prevention. An individual should never allow a tax lien to be placed on their assets and that comes from doing whatever it takes for an individual to stay current with their tax payments.
Being timely with your taxes and your good credit are serious matters. Getting them intertwined is never a good idea. It is definitely something of which someone should definitely “Be very afraid.”
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