|
|
Thanks For Reading |
Fair Credit Reporting Act
All posts tagged Fair Credit Reporting Act
|
||
| Credit card issuers won’t wait forever for you to catch up on your credit card payments. After six months of late payments, your credit card issuer will likely charge-off the account.
Many people assume a charge-off means the credit card balance has been cancelled, but that’s not true. Instead, a “charge-off” is an accounting term that simply means the charged-off amount has been written off as a loss in the credit card company’s books. You still owe a charged-off balance and a credit card issuer can still come after you for payment. Simply walking away from your debt just isn’t an option. |
||
| Charge-offs are listed on your credit report Charged-off accounts are listed on your credit report. Typically, the account listing will have six-months of late payments beginning with 30-day, 60-day, 90-day, and 120-day late indicators. Finally, the notation for charge-off is added to your credit report. The Fair Credit Reporting Act (FCRA) allows a charge-off to stay on your credit report for seven years from the date it was charged off. In all, the negative information for the account is on your credit report for 7 years plus the 180 days it was late prior to being charged-off. |
||
| Charge-offs are sent to debt collections Since credit card issuers have written off the debt in their books, it often isn’t profitable for them to go after charged-offs accounts. Instead, these accounts are sold or assigned to third-party collection agencies whose sole purpose is to convince you to pay the debt. A debt collector might list the account on your credit report, call you, or send you letters to get you to pay. If your state allows it, a debt collector might go so far as to sue you. If the collector wins the lawsuit, the judge might give the collector permission to garnish your wages until the charge-off has been completely repaid. |
||
|
Charge-offs hurt your financial progress
Even after you’ve paid a charged-off account, it will continue to be listed on your credit report until the credit reporting time limit has expired (after seven years). If you talk to the creditor before sending payment, you may be able to negotiate removal of the negative entry from your credit report in exchange for payment. Some creditors will agree to this. Others will not. The best way to avoid dealing with a charge-off is to pay your credit card bill on time each month. If you can’t afford to make your minimum payment, call your creditor to make arrangements. In hardship situations, you may be able to temporarily lower your payment until your financial condition improves. Thanks For Reading |
Go from a low 500 to a high 700
How to Establish Good Credit by Credit Repair Mike
When you have little or no credit history, applying for loans and credit can be difficult, if not impossible. Lenders like to see a record of payment history and a current credit score before they extend credit or loans. This information also helps them determine what interest rate to offer.
If you do not have a credit history, here are some ways to build it one:
Understand What Lenders Are Looking For
If you are looking to establish credit for the first time, lenders can’t look to your credit score to decide whether or not to lend you money. In these situations they have to examine other factors that can help them decide if you are a good credit risk or not. Here are basic guidelines to follow to establish or re-establish your credit:
| 1) | First and foremost, pay any bills that come your way on time. | |
| 2) | If you don’t have a checking account, open one. You have very little credibility with lenders if you don’t have at least a checking account and preferably a savings account as well. Just as importantly, be sure not to overdraw your bank account. Bouncing checks sends a signal to potential lenders that you can’t manage your daily finances and are therefore not a good credit risk. | |
| 3) | Establishing a relationship with a bank will improve your chances in obtaining a loan or credit card through them. If you already do business with a bank, they should be the first place to look. | |
| 4) | Open a charge card with a local department store or apply for a gasoline credit card. Pay off the entire balance each month. Remember, if you cannot pay off the balance each month, you are spending outside your means. | |
| 5) | Keep in mind that a lender or creditor may say you are approved for a particular amount, but that does not mean you have the resources to repay it quickly. Borrow only what you can afford to repay quickly. | |
| 6) | Another important factor lenders look at is your employment history. They want to see if you are able to hold a job or if there are periods of unemployment. Your ability to hold a steady job can improve the likelihood of getting approved. | |
| 7) | Lenders will also look to see how often you move and whether you rent or own. As with employment history, it pays to have a stable residence. | |
| 8) | Even without a credit history, it is possible to sign up for many utilities in your own name. Having an electric or gas bill, telephone, cable, or water service in your name also helps. Just having your name on these accounts won’t establish a credit score, but it can be helpful for first-time borrowers. | |
| 9) | Get a secured credit card. To obtain this type of card, you deposit a specified amount of money into a financial institution who will then issue you a bank credit card. The amount you deposit is your credit limit. After you maintain that account in good standing for a while, you may be able to obtain a regular credit card or loan. |
Establishing Credit is Only the First Step
Establishing a good credit history takes time. There are no shortcuts or tricks that can take you from no credit at all to a high score in a matter of months. Remember – your credit score is based on a number of factors such as payment history, length of time you’ve had credit, how much you owe and much more. Here are a few “don’ts” to keep in mind:
| 1) | Don’t overdraw your bank account. You will be charged fees, and you can damage your credit record. | |
| 2) | Don’t miss payments on bills or loans. Late payments count against you. | |
| 3) | Don’t let other people use your bank account, credit card, debit card or ATM card. You are responsible for what they do with it. | |
| 4) | Don’t leave utilities (gas, water, telephone, electric, cable) in your name if you move. Always close out or transfer all accounts before you move. If accounts are in your name, they’re still your responsibility. | |
| 5) | Don’t forget to account for recurring bills on your credit card, such as subscriptions or club dues. |
Thanks for Reading
Mike Watson
http://www.CreditRepairMike.com
619 743 8884
San Diego Credit Repair by Credit Repair MikeWhy Is Our Service So Important? |
| Are you being turned down for home loans, refinancing, automobiles, department store cards, or even gas cards? Are you paying a higher interest rate than you should, or has your credit limit been lowered? Are you tired and embarrassed by the constant calls from creditors and collection agencies harassing you? Have you faced repossession or foreclosure? In today’s economic climate, a growing number of Americans suffer from negative ratings in their credit file including delinquent payments, judgments, collections, foreclosures and bankruptcies. Not only do these items prevent consumers from obtaining new credit when they need it most, clients may also face additional penalties such as increased interest rates on credit cards, higher late fees and over-limit fees, shorter grace periods and lowered credit limits.  Call 619 743 8884 for info Most people with bad credit are not irresponsible, nor are they unwilling to pay their obligations. In fact, if you’re like most people, you probably maintained a good credit profile until an unforeseen circumstance like a layoff, medical problem, or divorce prevented you from making a few payments in a timely manner. The truth is that most people struggle long and hard to meet their obligations but the money coming in just doesn’t meet the bills going out. If the circumstances become serious enough, many people have been forced into foreclosure or to file for bankruptcy protection. More today than ever before, our increasingly tight credit market demands a high credit score. Why? Over three quarters of all lenders use credit scores when approving loans or credit. The importance of your credit score doesn’t end there. It’s also used to determine your interest rate, the amount of your down payment and the variety of mortgage types available to you if you’re buying a house, your ability to get a car loan, the premium on your auto or homeowner’s insurance, and even your ability to get a job. For example, some insurers are using low credit scores as indicators to identify individuals they believe are more likely to make claims against their insurance policies. These insurance companies maintain that there is a correlation between poor credit and filing multiple insurance claims. Last, but not least, if your credit score is on the low side, you’ll pay a higher interest rate on bank loans and credit cards, and may even see your credit limit decreased. Recent government surveys indicate that less than a third of Americans have viewed their credit report within the past year. Many more do not know their current credit score even though financial experts constantly advise consumers to review their credit reports for accuracy. A recent survey revealed that nearly 80% of all consumer credit reports contain serious errors or mistakes of some kind. This prevents millions of Americans from being able to purchase homes or automobiles, or finance other goods or services they need. You, very likely, could be one of those people with inaccurate information. Additionally, many people are paying astronomical interest rates, or have been denied financing unnecessarily due to low credit scores. Because your financial health revolves around your credit score, it is important that the information your credit report contains be as accurate and up-to-date as possible. Millions of inaccurate items have been removed from consumers’ credit reports since the Fair Credit Reporting Act was passed in 1971. Why shouldn’t YOU join them and start saving money right now?
Thanks for reading |
|
||
| Credit card issuers won’t wait forever for you to catch up on your credit card payments. After six months of late payments, your credit card issuer will likely charge-off the account.
Many people assume a charge-off means the credit card balance has been cancelled, but that’s not true. Instead, a “charge-off” is an accounting term that simply means the charged-off amount has been written off as a loss in the credit card company’s books. You still owe a charged-off balance and a credit card issuer can still come after you for payment. Simply walking away from your debt just isn’t an option. |
||
| Charge-offs are listed on your credit report Charged-off accounts are listed on your credit report. Typically, the account listing will have six-months of late payments beginning with 30-day, 60-day, 90-day, and 120-day late indicators. Finally, the notation for charge-off is added to your credit report. The Fair Credit Reporting Act (FCRA) allows a charge-off to stay on your credit report for seven years from the date it was charged off. In all, the negative information for the account is on your credit report for 7 years plus the 180 days it was late prior to being charged-off. |
||
 San Diego Credit Repair Charge-offs are sent to debt collections |
||
| Charge-offs hurt your financial progress Quite a few businesses look at your credit report to determine whether they should extend products or services to you. A charge-off can hinder your financial progress in a few different ways. It can keep you from:
Even after you’ve paid a charged-off account, it will continue to be listed on your credit report until the credit reporting time limit has expired (after seven years). If you talk to the creditor before sending payment, you may be able to negotiate removal of the negative entry from your credit report in exchange for payment. Some creditors will agree to this. Others will not. The best way to avoid dealing with a charge-off is to pay your credit card bill on time each month. If you can’t afford to make your minimum payment, call your creditor to make arrangements. In hardship situations, you may be able to temporarily lower your payment until your financial condition improves. Thanks For Reading Mike Watson |
CreditRepairMike.com 