Friday, December 4th, 2009
Creditors typically write off or charge off a debt if there has been no payment on the account for more than 180 days (6 months). This does not, however, mean that the person no longer owes the debt. A charge-off is an accounting procedure for tax purposes used by the creditor where an uncollectible debt or charge-off is reported as a loss for the creditor.
If you have any charge-offs on your credit reports, your ability to obtain credit will be seriously impaired and you must actively work to restore your credit. Charge-offs stay on your credit report for 7 years from the date of the initial missed payment that led to the charge-off (the original delinquency date), even if payments are later made on the charged-off account.
Paying an old charge-off will not remove it from your credit reports. It will simply be updated to a “paid charge-off,” which, while slightly better, is still a seriously derogatory item. To qualify for some loans, including a mortgage loan, you must take care of any charge-offs that appear on your credit report. To remove a charge-off from your credit report, you must dispute the account with the credit bureaus. If after numerous disputes the credit bureaus verify the account, you must contact the collector. All negotiations should be in writing. You will likely need to begin on the phone to ascertain the correct person with whom you should be negotiating. However, once you know who that person is, send everything in writing and request they do likewise.
Negotiate with the collection agency to remove their listing entirely from your report. A charge-off is a negative, whether it is paid or not. Make sure you get this agreement in writing as well.
Tags: Business, Collection agency, Credit card, Credit history, Creditor, Debt, Financial services, Loan
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Thursday, December 3rd, 2009
Having a high credit score is crucial when you are trying to get a new loan for a car or maybe a house. Most lenders will look at your credit score to determine if you are worthy of approving a loan for. Your credit report will show if you have been late on any payments to any loans you have or and credit cards. Your report will also show were you currently live and where you have lived in the past. It is important to have a high credit score but you also want to make sure that your the information on your credit report is accurate.
When a lender checks your credit report they usually will get the report form the three main agencies, Equifax, Experian and Transunion. It is important that you get your report from them at least once a year so you can check to make sure everything is accurate. The good thing is that you are entitled to one free credit report every year form each agency so this makes it easy to keep track of.
If you find that there are some things on your credit report that you do not agree with then you can file a complaint with the credit agencies and they then have to verify the information in question. They will contact the person who reported the information and by law they have 30 days to respond. If they do not respond then the item must be removed from your report.
Remember that when you are monitoring your credit report that you always make sure that it is accurate.
Tags: Business, Credit history, Credit score, Equifax, Experian, Financial services, Loan, TransUnion
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Wednesday, November 25th, 2009
This is a very insightful question. Right information is power and what I will give you here is the right information on what you should do if the credit bureau cannot verify the correctness of negative information on your credit report within the stipulated time.
According to the Fair Credit Reporting Act, FCRA, a credit bureau that has negative information listed in your credit report has just 30 days to investigate the correctness or wrongness of such information on your report. If within 30 days they are not able to complete their investigation, then they MUST delete the negative information from your report. It does not matter anymore whether the information is actually correct or not.
The important thing in this case is that they are not able to complete their investigation within the period the law mandates and as a result, they are required to delete it from your report.
If on the other hand, they complete their investigation within 30 days and the result shows that the negative information on your report does not belong to you, they are required to delete the negative information immediately. In addition to this, they are required to send you a letter notifying you that they have deleted the negative information from your report.
One important thing you should bear in mind when you are sending your dispute letter requesting the credit bureau to delete the negative information from your report is to send it by registered mail. THIS IS VERY IMPORTANT. The reason is because you will have an evidence of the delivery of the letter and the credit bureau cannot deny not receiving your letter.
Tags: Business, Credit and Collection, Credit bureau, Credit history, credit report, Fair Credit Reporting Act, Financial services, Law
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Friday, November 20th, 2009
Lots of people have had the misfortune to get a car or a vehicle seized. The recent economic conditions exacerbated tribulations just like this and many people have seizures and other bad credit showing on your credit report.
The truth of the matter is that if the refund or credit is honest and accurate derogatory that is not supposed to be removed from your credit report. However, you may be able to at least improve the situation of recovering contact the original creditor and see what can be negotiated. It may also be able to at least explain. If the list is a flaw in the way that may also be able to get is totally eliminated, but will have to be persistent.
Lists of credit, whether poor or so, are destined to remain on your credit report for a period of 7 years. While derogatory credit listings are displayed in your report that may have an effect on your credit score and credit rating. But time does it better and more time that has elapsed since the difficulty the better you are.
Listings wrong or occasionally wrong can be removed from a report of a dispute. You have to write a dispute letter stating your case and explain why the listing is wrong and why it should be deleted. After receiving the letter, the credit bureaus must verify the accuracy of the list or remove it from your report.
You can do research and write dispute letters for credit repair on your account or obtain expert assistance. You do not need professional help, but the process can be slow, tedious and difficult, in the interest of their valuable time and energy you might want to bear in mind.
Each type of list of the poor can be removed from a credit report. These include seizures, tax liens, bankruptcies and even foreclosures. If you attempt credit repair is not successful and the worst that can happen is that your credit report will be the same but could also improve your credit score and rating that can be a great benefit.
Most people need a good credit score at some point in their lives if they need to get a mortgage or a car loan or credit card. Your financial situation may be granted only do credit repair. As you fix your credit, it is important to keep any new loan as perfect as possible so when your fixing problems in the past has no new problems.
If your work history and your income has stabilized after a difficult time, can be enormously beneficial to perform the credit repair. It can help a lot and certainly can not hurt.
Tags: Business, Credit card, Credit history, Credit rating, Financial services, Foreclosure, Loan, Mortgage
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Friday, November 6th, 2009
Your ability (or lack of) to borrow money or have credit extended on your behalf is one of the most important assets you have. Your credit score can be considered to be a very important factor, not just by potential lenders, but by potential employers and even landlords. If your credit score is low, you will have trouble not only borrowing money, but will also find difficulty getting a job or renting a decent apartment or home. You can learn the steps to becoming a better borrower to improve your score and qualify yourself for better loans and credit cards.
Your FICO Score Determines Creditworthiness
The outlook for those of any credit type who are seeking loans is bleaker now than ever before due to the recent credit crunch and global financial crisis. But the determining factor in whether or not you will receive the loan that you need – and how much the credit will cost you in terms of interest – is your FICO score.
Your FICO credit score is a number between 300 and 850, and is used to communicate your credit history and behavior to potential lenders before they decide to extend money to you. You could consider the FICO scale an index that gives the lender a glimpse at the risk he may or may not be taking if you are approved for the loan you want. The higher your FICO score – the higher your chances of getting approved for the credit you desire, and the lower your interest rate will be.
What Potential Creditors Look For
Your score is a tell-all when it comes to your credit. The biggest thing that potential lenders look at is your payment history – or more specifically, the timeliness of your payments. Paying on time is the easiest way to add points to your FICO score. Another thing that creditors look at is how much credit you use each month as compared to how much you have available for use. In general, this should be no more than thirty percent of your available credit lines, across the board, with all sources of credit considered. Creditors also look at the length of time that you have an account open – in this case, the older the better.
Having an account in good standing for several years is very appealing to potential creditors because it shows them that you are a responsible and trustworthy borrower. The number of credit inquiries that have recently been run when you apply is also looked at. Potential lenders do not like to see multiple attempts within just a six month or so period. Applying for too much credit is very detrimental to your credit score – it gives the impression that you are on the prowl to borrow from anyone and everyone.
Where You Can Rebuild Your Credit
For those with damaged credit who are looking to rebuild their credit histories, the Internet provides a wealth of lenders who market their products for those specific borrowers. You can find great deals on bad credit loans and credit cards for bad credit by going with an online lender that specializes with at-risk borrowers.
Tags: Borrower, Business, Credit history, Credit score, Financial services, Interest rate, Loan, Money
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