Month: March 2011

When a Collections Company Calls

A charge off is one of the worst things that can appear on a person’s credit report. A debt that has been “charged off” is one that has been deemed uncollectible by a creditor (usually more than 180 days overdue), and therefore written off for the business’ tax purposes.

A valid charge off won’t go away

Even when a debt has been written off by the creditor as uncollectible, that debt is still a legally valid debt and the creditor can continue to try to collect the full amount you owe. Often times, a creditor will turn to a collections agency for help collecting charged off debts.

arrow Read this post

What to Know About Credit Bureaus

Credit bureaus are the organizations that collect and keep track of your credit history and other information that may be important to potential lenders, landlords, or even employers. Creditors, lenders, utility companies, and other agencies report the following to the credit bureaus:

• How much debt you have,
• Whether you make your payments on time
• How much credit you use

arrow Read this post

The First Step to Fix Credit

It’s estimated that as many as 25% of credit reports contain information that is not only wrong, but negatively impacting a credit score. Often, by the time a consumer realizes their credit score is lower than it should be, they have already been refused a loan or additional lines of credit.

Review your credit report regularly and look for negative listings that don’t belong. Until you do, it will be very difficult to fix credit. The following types of negative credit report listings can be disputed by contacting both the creditors and the credit reporting bureaus.

arrow Read this post

Credit Basics: Credit Score & Credit Repair

Credit. It’s a word that means a lot of things to a lot of people, especially when your no-interest period runs out. Your credit determines what kind of house you can live in, what kind of car you can drive, and what kind of loans you can get. Credit holds a lot of power, and it’s time to take your freedom back. With a little understanding and effort, you can take control of your credit instead of letting it control you.

So let’s get back to basics: “credit” is how much money someone is willing to trust you with. Your credit score indicates how well you’ve used that trust. Your credit score comes from your credit report, which shows your activity—how much money you’ve borrowed, how much you’ve paid back, and whether or not you paid it on time. Credit bureaus are the companies that keep track of your credit score by recording your credit report.

arrow Read this post

Credit Basics: The FICO Score

For many, the FICO Score is a confusing topic. However, the subject is essential when attempting to understand your credit report. The acronym stands for Fair Isaac Corporation. Founded in 1956, the business pioneered credit scoring. The FICO Score is an indicator of an individual’s credit risk and ability to repay a debt.

There are three credit bureaus: Experian, Equifax and TransUnion. These consumer reporting agencies generate your credit reports. Each of those credit reports contain information about how much money you have borrowed, loan types, timeliness of payments and lender data. A credit report basically archives your debt paying history. It also lists credit card payments, home loans, student loans and more. In addition, these credit bureaus keep records regarding bankruptcy, liens and other claims against your personal property by a creditor.

arrow Read this post