Creditors charge off accounts all the time to avoid being responsible for the debt you owe them. They have every right to do it, but it would be nice if they tried to negotiate payments with you before charging off your account dinging your credit reports and lowering your credit scores. Because once they charge off it off, your account is closed with no chance of a good payment history showing up again. At least with a late payment you have some good payment history showing and the chance of having the creditor removing the late payment themselves, but not with a charge off.
This is the best way to remove a charge off from your credit report.
Credit Bureaus Disputing
This can be extremely easy depending on the creditor and situation or it can stay on their forever if done incorrectly. The Fair Credit Reporting Act was put into place for consumers to dispute anything on their credit report they believe to be inaccurate or erroneous. Consumers may dispute anything on their credit report by just asking for verification on the item.
Never dispute everything on your credit report at once (unless you just have 1 or 2 items needing disputing) or accidently verify the item yourself by claiming you had an account. Do it this way or your account could get marked as frivolous and make it impossible to send in another dispute for at least 60 days. Take your time, be honest, and write a good dispute letter. If the item comes back as verified, do it again, these things can take time.
Disputing and removing charge offs is not a new thing and has been around for several years, but the chance of removal has gone way up with rise in the following actions:
* Identity Theft - The fastest growing crime in the world.
* Credit Reporting Errors - The whole reason the Federal Trade Commission put the Fair Credit Reporting Act into affect.
* Unfair Creditor Practices - Obama has begun new legislation to stop credit card companies and other creditors from treating customers unfairly.
As you can see now more than ever we should be aware of our credit reports and what creditors are reporting to it. Dispute anything that is reporting negatively by asking for verification and your chance of charge of removal will improve drastically.
The credit bureaus have been forced to remove millions of negative items on people's credit reports. The leading credit repair firm in the nation removed 158,531 charge offs in 2009. I'm sure they could remove charge offs for you too.
Thursday, October 14, 2010
"Credit Charge Offs" - What They Mean to Your Credit
Once a charge off was declared by your creditor, they would consider it as bad debt and would be allowed to include it in the Profit and Loss section of the debtor's financial statement. This would allow your creditor to treat your bad debt as a business expense and the Internal Revenue Service would not demand any taxes on these items.
Although it is considered to be a bad debt, it does not mean that it would not be uncollected. Your creditor would still be doing necessary steps in order to collect their money including filing a lawsuit if hiring an outside collection agency does not work.
According to the Fair Credit Report Act, these charge offs could remain for as long as seven years unless your creditor asked the credit bureau to remove it. Of course, you will have to negotiate payment of your debt, whether in partial or full. Factors that your creditor will consider before agreeing to any negotiation include debt amount, offered settlement, and other policies that the creditor requires.
If you are attempting to settle your charge off, you should remember to document everything. Also important is to make arrangement with someone for the creditor's office who has the legal authority to enter into such agreement. You should make sure that the agreement is legal and binding before you pay anything. If not, you will never have the chance to remove the charge-off record on your credit report.
When negotiating payment terms, you should make sure that you are doing so realistically. Do not make promises that you will have difficulties keeping. You will only make matters worse if you try to commit to paying more than you can afford. To deal with your charge-off troubles, you must be able to realistically face your financial situation. Determine what the reasons for your indebtedness were and how you can manage them. In most cases, a change in spending habits and bills management is in order.
charge offs can actually be avoided if you are just diligent in paying your bills or speaking with your lender. On the other hand, if the charge-off is already there in your credit history, then dealing with it should be your top priority. Although it would take some time, it is only the responsible thing to do. You should definitely learn from this experience and make sure it does not happen again.
Although it is considered to be a bad debt, it does not mean that it would not be uncollected. Your creditor would still be doing necessary steps in order to collect their money including filing a lawsuit if hiring an outside collection agency does not work.
According to the Fair Credit Report Act, these charge offs could remain for as long as seven years unless your creditor asked the credit bureau to remove it. Of course, you will have to negotiate payment of your debt, whether in partial or full. Factors that your creditor will consider before agreeing to any negotiation include debt amount, offered settlement, and other policies that the creditor requires.
If you are attempting to settle your charge off, you should remember to document everything. Also important is to make arrangement with someone for the creditor's office who has the legal authority to enter into such agreement. You should make sure that the agreement is legal and binding before you pay anything. If not, you will never have the chance to remove the charge-off record on your credit report.
When negotiating payment terms, you should make sure that you are doing so realistically. Do not make promises that you will have difficulties keeping. You will only make matters worse if you try to commit to paying more than you can afford. To deal with your charge-off troubles, you must be able to realistically face your financial situation. Determine what the reasons for your indebtedness were and how you can manage them. In most cases, a change in spending habits and bills management is in order.
charge offs can actually be avoided if you are just diligent in paying your bills or speaking with your lender. On the other hand, if the charge-off is already there in your credit history, then dealing with it should be your top priority. Although it would take some time, it is only the responsible thing to do. You should definitely learn from this experience and make sure it does not happen again.
Tuesday, October 12, 2010
What's a Good Card for My Credit Score?
One of the questions frequently by those seeking help with repairing their credit, whether by sifting through credit repair reviews for professional services or trying to go it alone is what the best type of credit card for their credit score is, or if there even is one. Will a secured credit card get them more points than an unsecured one? What about the differences between cards from banks vs. credit unions? And how do store cards factor in?
Well, the good news is that you can carry any type of credit card; none of them adversely affect your score. credit repair services The only two types that really matter are bank credit cards and retail cards.
What's in your wallet?
So now that we know which two types of cards matter the most, is there any difference of points between them as well? There is a slight difference according to FICO, the firm that came up with the most widely used credit scoring method. How you use your bank card can impact your score more than store cards - not having one in the first place can actually dock you a few points in the Types of Credit Used category.
Don't fret if you don't have any bank cards in your wallet - most are incredibly easy to get. Even if you find you only qualify for a secured credit card (the difference being you'll be required to put down a deposit to open the account), there's no worry as secured and unsecured cards are treated no differently.
Even if you don't feel like going out and getting a bank card (even though you really should, if you want the best credit profile you can get), you can still build up a good credit score with at least revolving retail card account. credit repair services You likely won't achieve the highest score possible (850 on the FICO scale), but you will able to at least taper off at a nice spot in the 700s.
So there you have it. When it comes to your credit score, bank cards are the absolute best cards you can have. Of course, your types of credit used only make up 10% of your overall credit history. In addition to what types of cards you should have, and how many (we recommend no less than 3 open cards), you should remember to keep focus on everything else that goes into your profile as well, from making payments on time to paying down all outstanding debts.
Well, the good news is that you can carry any type of credit card; none of them adversely affect your score. credit repair services The only two types that really matter are bank credit cards and retail cards.
What's in your wallet?
So now that we know which two types of cards matter the most, is there any difference of points between them as well? There is a slight difference according to FICO, the firm that came up with the most widely used credit scoring method. How you use your bank card can impact your score more than store cards - not having one in the first place can actually dock you a few points in the Types of Credit Used category.
Don't fret if you don't have any bank cards in your wallet - most are incredibly easy to get. Even if you find you only qualify for a secured credit card (the difference being you'll be required to put down a deposit to open the account), there's no worry as secured and unsecured cards are treated no differently.
Even if you don't feel like going out and getting a bank card (even though you really should, if you want the best credit profile you can get), you can still build up a good credit score with at least revolving retail card account. credit repair services You likely won't achieve the highest score possible (850 on the FICO scale), but you will able to at least taper off at a nice spot in the 700s.
So there you have it. When it comes to your credit score, bank cards are the absolute best cards you can have. Of course, your types of credit used only make up 10% of your overall credit history. In addition to what types of cards you should have, and how many (we recommend no less than 3 open cards), you should remember to keep focus on everything else that goes into your profile as well, from making payments on time to paying down all outstanding debts.
How to fix your credit rating woes
A credit score that's anywhere above 650, is generally considered healthy. A credit score that's raised to 720 can save you a lot of money, through a reduction in interest rates. For those who've got a decent credit score, but would like to raise it, to save on interest rates, or obtain credit cards with ease, and also those who've got a not so good credit score, read further to know, how to improve credit scores.
Reports indicate that there are more than 30 million people who have severe credit blemishes. There are a few pointers that might indicate a falling credit score. For example if you have been denied a credit card, chances are that you have a bad credit score. Utility services always run a credit check to decide before extending their services for you. If they've decided not to continue their services, chances are you are running into a bad credit score. Debt collectors calling you is also a sign that your credit scores are going downhill. credit repair services Creditors transfer your account to a debt collection agency only if they are assured that you are unlikely to pay back their bills.
It's hard to believe but credit reports are also the basis of promotions in many companies, especially in financial companies. If you've been denied a promotion, even though you deserved it, chances are that your credit scores aren't too rosy. Your landlord is also most likely to check for credit scores. For those who have had to face one of these experiences, its time you meet up with a professional credit repair services agency. These credit repair service guys help you to sort out your finances and come up with solutions that could help you to not only come out of a bad credit score, but also manage to get you a good credit score.
There are a number of websites that offer credit repair services. Before you choose one, there are a few things that you need to know. The first and foremost thing is to know what your credit score is. You could also a get a free check of your possible credit rating through these websites. These credit rating service agencies offer different packages that you could choose from.
Besides these there are a few simple steps that you can take to improve your credit scores. For example remember to use the credit card sparingly and as little as possible. You could start by paying cards that are close to their limits. This would help you to keep the credit score in check. Also check for the credit limits. Often credit card companies, show a limit that's lower than your actual limit. You could always call these companies and get them altered.
A few, but significant steps can change the way, the world thinks about you. A good credit score not only helps you attain financial freedom, but also makes you feel good about yourself.
Reports indicate that there are more than 30 million people who have severe credit blemishes. There are a few pointers that might indicate a falling credit score. For example if you have been denied a credit card, chances are that you have a bad credit score. Utility services always run a credit check to decide before extending their services for you. If they've decided not to continue their services, chances are you are running into a bad credit score. Debt collectors calling you is also a sign that your credit scores are going downhill. credit repair services Creditors transfer your account to a debt collection agency only if they are assured that you are unlikely to pay back their bills.
It's hard to believe but credit reports are also the basis of promotions in many companies, especially in financial companies. If you've been denied a promotion, even though you deserved it, chances are that your credit scores aren't too rosy. Your landlord is also most likely to check for credit scores. For those who have had to face one of these experiences, its time you meet up with a professional credit repair services agency. These credit repair service guys help you to sort out your finances and come up with solutions that could help you to not only come out of a bad credit score, but also manage to get you a good credit score.
There are a number of websites that offer credit repair services. Before you choose one, there are a few things that you need to know. The first and foremost thing is to know what your credit score is. You could also a get a free check of your possible credit rating through these websites. These credit rating service agencies offer different packages that you could choose from.
Besides these there are a few simple steps that you can take to improve your credit scores. For example remember to use the credit card sparingly and as little as possible. You could start by paying cards that are close to their limits. This would help you to keep the credit score in check. Also check for the credit limits. Often credit card companies, show a limit that's lower than your actual limit. You could always call these companies and get them altered.
A few, but significant steps can change the way, the world thinks about you. A good credit score not only helps you attain financial freedom, but also makes you feel good about yourself.
Tuesday, September 28, 2010
How Does a Credit Repair Advice Company Work? Are They Trust Worthy?
A lot of people are unaware that credit repair advice companies fall into 2 distinguish types. People believe that all the credit repair bureaus are exactly the same, but the difference between the two types is big. In this article, we will take a close look at the difference between the two types, and also try to find out if they are of any good use for you.
Firstly, let's get rid of the scammers. The first type of repair advice companies, is what I will call the scammers. These are the "con men", and "con women", that have ads, all over the Internet, claiming to be able to remove any negative credit information from your credit report, including bankruptcies. credit repair advice
Seriously, do you really think that is possible? As you already probably know, bankruptcy is a process of federal law. If it was possible to remove the information about them earlier than the statutory 10 years that the information has to stay on your credit report, don't you think the government would step in and close the loophole?
I mean, It is the US government that has decided that this kind of information has to be on your credit report for that period of time. And let us also consider that, by some amazing magical way, it was possible to withdraw bankruptcy or bad credit information from your file. What would happen next time when you applied for a credit or a loan?
I mean, when you are asked on the application; "have you ever been made bankrupt?", what will you answer? Will you lie to them? If you use your common sense here, you do understand that this is impossible. My advice for you is to stay away from companies who claim they can fix your credit report or credit score, this way. credit repair advice
The second type of credit repair companies, however, operates quite legally.
They make it absolutely clear that the only information, they can erase from your credit report is the incorrect kind of information. What that means is that if you find that someone has placed incorrect information on your credit file, you can get it removed under the Fair Credit Reporting Act, also known as the FCRA.
The thing is that you need to know what the information is which incorrect, and to find that out you need to get hold of an "up to date" copy of your credit report. Once you've done that and found the part in your report which requires changing, all you need to do is to raise a dispute with both the credit bureau and the company which placed it there, in the first place. In fact, the credit repair agencies only handle that dispute part on your behalf so the question is; why would you pay them to do something so simple, when you can easily do it yourself? credit repair advice
As you have read in this article, the only credit repair companies you should be involved with, is those who can provide you with the information you need to be "up to date" with in your credit file, not those who claim to resolve or remove something that by law not can be fixed. Start of with a new fresh up to date credit report, and take it from there.
Source......
Link Building Service
Firstly, let's get rid of the scammers. The first type of repair advice companies, is what I will call the scammers. These are the "con men", and "con women", that have ads, all over the Internet, claiming to be able to remove any negative credit information from your credit report, including bankruptcies. credit repair advice
Seriously, do you really think that is possible? As you already probably know, bankruptcy is a process of federal law. If it was possible to remove the information about them earlier than the statutory 10 years that the information has to stay on your credit report, don't you think the government would step in and close the loophole?
I mean, It is the US government that has decided that this kind of information has to be on your credit report for that period of time. And let us also consider that, by some amazing magical way, it was possible to withdraw bankruptcy or bad credit information from your file. What would happen next time when you applied for a credit or a loan?
I mean, when you are asked on the application; "have you ever been made bankrupt?", what will you answer? Will you lie to them? If you use your common sense here, you do understand that this is impossible. My advice for you is to stay away from companies who claim they can fix your credit report or credit score, this way. credit repair advice
The second type of credit repair companies, however, operates quite legally.
They make it absolutely clear that the only information, they can erase from your credit report is the incorrect kind of information. What that means is that if you find that someone has placed incorrect information on your credit file, you can get it removed under the Fair Credit Reporting Act, also known as the FCRA.
The thing is that you need to know what the information is which incorrect, and to find that out you need to get hold of an "up to date" copy of your credit report. Once you've done that and found the part in your report which requires changing, all you need to do is to raise a dispute with both the credit bureau and the company which placed it there, in the first place. In fact, the credit repair agencies only handle that dispute part on your behalf so the question is; why would you pay them to do something so simple, when you can easily do it yourself? credit repair advice
As you have read in this article, the only credit repair companies you should be involved with, is those who can provide you with the information you need to be "up to date" with in your credit file, not those who claim to resolve or remove something that by law not can be fixed. Start of with a new fresh up to date credit report, and take it from there.
Source......
Link Building Service
Free Credit Repair Advice - How to Repair Your Own Credit
When you are trying to repair your credit, it may be best to try to fix it yourself. If you suffer from bad credit you will find that numerous firms will contact you claiming to be able to assist you in rebuilding your credit for a fee and once you hire them they will take care of everything. However, the truth of the matter is that fixing your credit on your own may be the best thing you could possibly do.
Fixing your own credit can be a difficult process but many who opt to fix their own credit do not find it that difficult to do. More and more people are beginning to repair their own credit. If you want to go this route you need to first contact one or all the three major credit reporting agencies, Equifax, TransUnion, and Experian. Ask them to send you a free credit report. The FACT act was passed in 2001 by Congress and the act lets every consumer obtain one free copy of their credit report annually. credit repair advice
Once you have obtained a copy of your credit report, you will need to take some time to check all the information for accuracy. You will most likely find some mistakes. These discrepancies may be due to the fact that that an old account that you had has been paid off but it is still being reflected on you current statement. credit repair advice
Once you have made a list of all of the mistakes on your credit report, mark them on the credit report or on a sheet of paper. Send a copy of the report to the agency you obtained your credit report from. You may want to contact them by telephone as well. When they receive your complaint they will ask for proof that what is on the report is indeed an error. This is why it is best to send a copy of your credit report to be on the safe side. When they check the error they will notify you saying that they have fixed the mistake or that they do not have enough proof to take the mistake off of your credit report. If you want to successfully improve your credit you need to be stringent when it comes to making sure that all the information on the credit report is correct and reflected on your statement.
A big part of beginning any type of credit repair plan, whether you are repairing your credit yourself or using a debt counselor, is making a long-term plan to keep control of your finances so that you will not make the same mistakes you made with your credit in the past. Credit repair counselors are there to assist you but what is the use of paying their fee if you later find out the firm is not reputable? credit repair advice
Repairing your credit is very time consuming and it will require that you take it very seriously. Over a period of time, you will see the positive and favorable results. You will soon know that these results came about through your own motivation and your own efforts. There is absolutely no better feeling.
Source......
Link Building Service
Fixing your own credit can be a difficult process but many who opt to fix their own credit do not find it that difficult to do. More and more people are beginning to repair their own credit. If you want to go this route you need to first contact one or all the three major credit reporting agencies, Equifax, TransUnion, and Experian. Ask them to send you a free credit report. The FACT act was passed in 2001 by Congress and the act lets every consumer obtain one free copy of their credit report annually. credit repair advice
Once you have obtained a copy of your credit report, you will need to take some time to check all the information for accuracy. You will most likely find some mistakes. These discrepancies may be due to the fact that that an old account that you had has been paid off but it is still being reflected on you current statement. credit repair advice
Once you have made a list of all of the mistakes on your credit report, mark them on the credit report or on a sheet of paper. Send a copy of the report to the agency you obtained your credit report from. You may want to contact them by telephone as well. When they receive your complaint they will ask for proof that what is on the report is indeed an error. This is why it is best to send a copy of your credit report to be on the safe side. When they check the error they will notify you saying that they have fixed the mistake or that they do not have enough proof to take the mistake off of your credit report. If you want to successfully improve your credit you need to be stringent when it comes to making sure that all the information on the credit report is correct and reflected on your statement.
A big part of beginning any type of credit repair plan, whether you are repairing your credit yourself or using a debt counselor, is making a long-term plan to keep control of your finances so that you will not make the same mistakes you made with your credit in the past. Credit repair counselors are there to assist you but what is the use of paying their fee if you later find out the firm is not reputable? credit repair advice
Repairing your credit is very time consuming and it will require that you take it very seriously. Over a period of time, you will see the positive and favorable results. You will soon know that these results came about through your own motivation and your own efforts. There is absolutely no better feeling.
Source......
Link Building Service
Friday, September 17, 2010
Credit Repair - Obtain a Loan Qualifying Credit Score in Less Than 90 Days
You should always have a credit score high enough to qualify for affordable loans very quickly. It does not matter whether you intend to go in for a loan in the near future or not. Rather, you should have this option open so that you will be protected in the event of an emergency.
There is no point in coming up with a 24 month plan that will boost your credit score from 450 to 600. Even if you do succeed, you will still fall in the subprime category and will not get affordable loans. credit repair services
In my opinion, you should go in for a quick solution that will boost your credibility and help you qualify for loans in a span of just 90 days. How?
The first step that you should take is to get in touch with your credit bureau and seek a dispute on the various entries in your credit report. If the entries are disputable, the information will be removed and your creditor score will get a boost.
On the other hand, if the information cannot be verified by the credit bureau, the same shall be automatically removed. The moment negative information is removed from your credit history; you will automatically enjoy a huge boost in your score.
This should be more than sufficient to bring you back in the ambit of affordable loans. Your solution or strategy should not stop here. credit repair services You should go ahead and make use of professional credit repair services to find the best possible remedies.
Your regular repayment to a debt that has been charged off or which has become very old maybe pulling your credit score down. The fact that you have repaid debt which had been written off will make your default active again.
Hence, credit repair is not always about common sense and logic. It is about technicalities and innovative use of your financial strings as well.
Finally, a credit repair expert will analyze your finances and give you a clear idea about where you stand and how you can boost your credit score with minimum expenses and efforts. credit repair services When you need quick results and when you need it in a hurry.
It is obvious that you will have to choose the right service provider. You can easily find the best solution on the World Wide Web. You can also find the best credit repair specialists online itself.
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