Negative Accounts – Can They Reappear On Your Report After Removal?
Negative AccountsErroneous entries on your credit report can drag your score down. And, that is why federal law requires that debts be either validated or removed when they are challenged. But, can the debt come back to haunt you after you’ve gotten it removed? The answer is that it depends on why and how the account was deleted in the first place.
The one reason a debt can come back.
If a creditor fails to validate a debt within 30 days, it is removed. But, in certain electronic dispute processes, there is an exemption that can allow an account to be put back on your report without notice. In these cases, if the lender researches and finds that the account information is accurate, the account can be put back on your credit report. However, there are processes that can protect you from having this happen.
Debts that must stay deleted.
Accounts that are deleted through a dispute that specifically requests permanent removal protect you against those accounts coming back. In processing over 14,000 removals, Key Credit Repair has not yet seen a single item re-instated.
But, what about a collection agency that suddenly contacts you about a debt that you know has been rightfully removed? Don’t let them bully you into paying a debt that you don’t owe, especially if it was removed for any of the following reasons:
The debt is too old. Most records fall off your credit report after seven years. If something comes off your credit report because of age, do not respond to creditors trying to collect the debt. It cannot be added back without new action because it has passed the deadline for removal.
It isn’t yours. If the debt was erroneously put on your credit report, it cannot be readded. Under the Fair Credit Reporting Act, it is against the law for collection agencies to report debt that they know is inaccurate.
It’s a duplicate. Sometimes, a debt will show up more than once on your credit report. Once you have shown that the debt is a duplicate, the entry should be removed and should not be added back.
When you are in the process of repairing your credit, check your credit report regularly to ensure that it is up to date. You can get one report free per year from each of the three major credit reporting agencies, as well as free access to limited versions of your credit report through sites like CreditKarma. By knowing what can and cannot be put back on your report, you can protect your credit and your good name. Contact us to learn more about how we can help you restore your credit and enjoy the opportunities you deserve.
Credit Repair Procrastination – Why do we wait?
It’s not uncommon to be afraid to dig into your finances. Many people feel that they don’t properly understand their finances or that it’d be difficult to learn. Not sure what is holding you back? Read on to learn common reasons that people avoid .
Why Are You Avoiding Repairing Your Credit? Credit Repair Procrastination
1. You think it’s too difficult.
If you did not get a good education in personal finance, you may not know a lot about credit. Luckily, there are many resources to help you learn. Knowing what goes into your credit score can help you predict the outcome.
2. You think your credit doesn’t matter.
If you pay in cash for everything, you may think your credit score doesn’t matter. However, bad credit can affect every aspect of your life from where you can get a job to how much you pay for insurance.
3. You don’t know how much you owe.
Not sure what your debt is? You’re not alone. According to The New York Times, people tend to report in surveys only about half as much as credit card companies say is owed to them.
4. You don’t have the funds to pay off old debt.
A recent study found that, on average, people with delinquent debt owe over $5,000 in credit card debt, past medical bills and other types of debt. can feel impossible if you don’t have the money on-hand to pay back your creditors.
5. You don’t know where to start.
If you’ve never examined your credit, you may not even know how to start to repair credit scores. Look online for credit tips to find out what you owe and how to start debt management.
6. You don’t know what to do about erroneous debts.
Looked at your credit report and found that you don’t know what some of the entries are for? As many as 42 million people have errors on their credit reports.
7. You think you don’t have the time.
can be a time-consuming activity. But, with the help of quality companies, you can outsource some of the leg work while reaping the benefits of a better credit score.
8. You are embarrassed.
Many of us have had debt management issues due to youthful disregard for financial responsibilities or getting in over our heads with credit card debt. But, your bad credit won’t go away unless you confront the issue head on. Credit Repair Procrastination is common.
9. You don’t want a significant other to know.
There aren’t any hard figures on how many people are hiding debt from a husband or wife, but, the issue is common. By confronting your debt and working to repair your credit, you can build a better relationship and better possibilities for your shared future.
10. You feel alone.
Few people talk about their debt issues, so, you may feel like you are the only one who has struggled with bad credit. Caring companies can help you through your struggle and help you overcome any feelings of isolation, while giving you credit tips and the tools to build a better financial future.
For additional information on how you can start repairing your credit, feel free to Sign Up for $0 below.
Reasons for Credit Repair – Blog
If personal finance issues make you want to pull the covers over your head, it can be hard for you to know whether you’re coasting along okay or whether you need help with your credit score.
The top signs that you need credit repair:
1. You’ve been turned down for a job.
Many companies will only hire people who have good credit. They believe that good debt management skills points to a higher level of responsibility.
2. You pay more for car insurance.
Insurance companies take your credit score into account when determining your rates.
3. You were denied a car loan.
It is generally easier to get approved for an auto loan than other types of credit. Car loans are good to have, since keeping up with an installment loan over time significantly improves your credit score.
4. You lost a promotion.
Does your company do work with the federal government? These companies often require that employees over a certain level be able to qualify for security clearances. And, you can be denied clearance if you have excessive debt or a low credit score.
5. Debt collectors are calling and harassing you.
When you fail to make payments to your creditors, they end up selling your debt to a collection agency, which then can call you and request payments. The account will be reported by the three credit bureaus as a collection and will affect your ability to get any loans or open a new credit card, as well as damage your credit score.
6. You were turned down for a mortgage.
This is the big one. Homeownership is linked to greater financial stability, a feeling of psychological stability and even tax advantages. Having a good credit record is necessary to achieve this common goal.
7. You’ve been denied for a credit card.
Opening a new revolving account is not as easy as it used to be. If your credit card application was denied, you may need credit “clean-up”. The credit card company is required to let you know the reasons why your application was denied, so you can take the necessary actions to fix your credit.
8. You need to save more than most for a vacation.
No credit card means that you are at the mercy of airlines and may miss airfare sales. Rental cars and hotels hold hundreds of dollars of your money for deposits. Limited or complete lack of access to credit can make every aspect of a vacation more of a hassle.
9. Your application for an apartment was turned down.
Not only can bad credit keep you from buying a house; it can prevent you from finding a place to rent.
10. You feel trapped by a lack of access to credit.
Many everyday financial interactions are made more difficult by a lack of access to credit. But, you can learn how to repair your credit and enjoy more and better opportunities. Visit Key Credit Repair to educate yourself about credit and find helpful credit tips.
For additional information on how to repair your credit, please Sign Up for $0 below.
Emergency Fund – Protect Your Credit
When you have gone through all of the trouble of credit repair, you want to ensure that you do not wind up with bad credit again. But, in many cases, people do not wind up with bad credit because they are irresponsible. It is because they were unprepared to deal with surprise medical bills, expensive home repairs, last-minute vehicle replacements or other calamities. This is where a healthy emergency fund comes in.
How Much Should Be In Your Emergency Fund?
Add up all of your fixed expenses for a month, then multiply that number by three. That is how much you will need to have on-hand to keep yourself relatively stable should something interrupt your earnings for a three month period. Three months expenses is the most common recommendation for emergency funds; some experts recommend keeping six months expenses on-hand.
This fund isn’t just for loss of income. It is also for handling unexpected bills. For instance, after your home purchase, you will want to have extra cash available to deal with the inevitable emergency repairs every homeowner eventually faces.
But I Can’t Save That Much!
If you are not in the habit of saving, or if you are living close to the edge of your means, putting aside thousands of dollars can seem like an impossible feat. It can be a lot easier if you break the task down into smaller parts. Start by putting away just $10 a week until you have enough that you could pay your electric bill out of savings. Then, aim for two bills worth. It’s easier if you set up an automatic withdrawal so that you never see the money in your account.
You may be able to free up more money by going over your bills and seeing if there is anyplace you can cut back. Look at monthly membership fees like your gym or Netflix account and decide whether you can go with a cheaper plan. Or, eliminate one restaurant dinner a month and sock the money into savings instead.
When Can I Touch My Emergency Fund?
Set up firm criteria in advance so that you aren’t tempted to dip into your fund prematurely. The emergency fund is not for vacations, splurges, or even great deals that you would otherwise have to pass by. Set up a separate account for impulses so that you can keep your emergency fund secure.
The only times you should dip into your emergency fund is when you have little other choice. For instance, if your car needs expensive repairs, it is okay to use the fund for that. It is also okay to dip into the emergency fund to cover basic bills if you have been laid off from your job or have been out for an extended illness.
An emergency fund is a great tool for keeping your credit score high and your family secure. By keeping these funds on-hand and available, you can help ensure your family’s future stability.
Credit scores are a quick and handy shorthand that banks and other potential creditors use to assess their risk before loaning money. But, as is common with shorthand systems, they are also prone to a number of flaws that can negatively affect you, the consumer.There are actually a number of controversies surrounding the use of credit scores and credit reports. Some states have proposed legislation to give consumers more protection. Some of the issues with credit scores that can hurt consumers:
Possible Errors in Credit Reports
Experts estimate that 79% of all credit reports contain errors. While most of these are innocuous errors regarding employment or past addresses, others contain negative marks that can lower your credit score. And, when there is an error in your credit report, you are presumed guilty. You, or a credit repair specialist working on your behalf, must initialize investigations into erroneous reportings. In some cases, inaccurate data has stayed on credit reports long enough to begin legal action.
Non-Credit Uses of Credit Scores
Credit scores are not just used for assessing credit. They are also more and more commonly used when you are seeking employment. This has become even more common, and more damaging during the economic downturn. Many worthy applicants are turned away because economic hardships have left them with less than perfect credit histories. At least seven states have put laws into place banning employers from pulling applicants credit reports or limiting what information employers can see.
Further, there is little evidence that credit scores and credit reports are a good indicator of employment performance. Representatives from TransUnion admitted that they had no figures correlating credit score and worth as an employee. A study done by the New York Times failed to find any relation between the two.
Complexity of Credit Scoring Process
The truth is, no one knows exactly how the credit scoring agencies arrive at your credit score. The work involves complex computations that are largely kept secret to avoid gaming the system. Credit reporting agencies have shared the how each section is weighted; however, the exact figures are kept secret. This has led many consumer advocates to criticize credit reporting agencies for a lack of transparency.
Variations Between Different Agency’s Scores
The version of your credit score that you can access is not the same one seen by potential creditors. And, your score can vary depending on which credit scoring agency is used. According to a report from the Consumer Financial Protection Bureau, one in five people are getting credit score reports that are significantly different from what retailers see. This can cause many consumers to pay a higher interest rate than they should because they fail to shop for a better deal on credit card interest rates. In other cases, consumers inadvertently lower their own scores by applying for loans that are beyond what they can qualify for.
In the end, the best thing you can do is arm yourself with knowledge. As you work toward home purchase plans, stick with accepted best practices for credit health. By keeping your eye on your financial health, you can find your way through this complex and sometimes unfair system.
There’s no way around it: a bankruptcy will unavoidably negatively impact your credit scores. However, there are a number of factors that will affect just how severe the effect is on your score, some of them unexpected. While there is no straightforward formula regarding how many points any one person will lose in a bankruptcy, there are a few factors that can help you make a healthy guess.
A few things to consider:
How High Was Your Score Before?
Ironically, someone with a higher FICO score will see a bigger drop as the result of a bankruptcy than someone with a lower score. In a mock scenario released by FICO in 2010, they compared two hypothetical scenarios: one person with a 780 and one person with a 680, both of whom file for bankruptcy. The person with the higher score lost 240 points while the person with the lower score lost only 150, leaving them both with scores in the mid 500s.
However, bankruptcy usually occurs after a long stretch of failing to pay bills on time, so, it is likely that late payments already negatively affected your score by the time that you file.
How Many Accounts Are Involved?
The more accounts that are included in your bankruptcy, the larger the effect on your credit score. The discharged debts each count as a negative filing. However, these will drop off your credit record seven years after filing, so, your credit rating will start to improve even before the bankruptcy is gone from your credit records.
How Long Ago Was the Bankruptcy?
A Chapter 13 bankruptcy filing stays on your credit record for seven years, while a Chapter 7 bankruptcy stays for 10. The longer it has been since you filed and the more responsible you have been in the interceding time, the less your bankruptcy will depress your credit score.
Rebuilding After Bankruptcy
After a bankruptcy, you can rebuild your credit and achieve goals that include a home purchase. Some methods to use during your credit repair journey to improve your score:
Review your credit reports. Make sure that all debts that were discharged in the bankruptcy are reflected accurately. As many as 79% of all credit reports have at least one error, so, it is worth it to check.
Pay every bill on time. Late payments can snowball and destroy your credit over time. Try automating payments so you never forget one.
Look for a secured credit card. Cautiously add revolving loans so that you can show creditors that you can be trusted with credit.
Use cards sparingly but regularly. Build up a regular habit of responsible use. One good way to do this is to charge a small, regular bill like a gym membership to your card and pay it off in full each month.
Do not close old credit card accounts. If you have any credit card accounts from before your bankruptcy, keep them open. The age of your credit accounts is a factor in your credit score, and the older your accounts, the better.
While a bankruptcy is a challenge, it is not the end of your financial life. Educate yourself about your credit, and carefully rebuild to restore your financial future.
As credit scoring bureaus have become more open about what makes up your credit score, people have become more educated about maintaining good credit. However, there are still many myths that abound that can damage your score and get in the way of home purchase dreams. Don’t believe any of these dangerous myths:
Myth: You can buy a new credit identity.
Some fraudulent credit repair companies say that they can get you a brand news credit identity free from part credit mistakes. What you actually get when you deal with these companies is an Employer ID Number. It has nine digits, just like a Social Security Number, but it has a distinct purpose. Trying to use it instead of you SSN is fraud and can result in criminal charges.
Myth: You should close old accounts that you aren’t using.
Many people believe that old credit accounts can hurt their credit score because creditors fear that, with too much credit, you’ll get in over your head. Those old accounts, however, look good to potential new creditors. They show that you can be trusted with large amounts of credit without going on a spending binge. To make sure that old accounts stay open, make sure you make an occasional charge on the account. One of the best ways to do this is to put one of your monthly automatic withdrawals, such as a health club membership, on the card and sign up to have the bill automatically paid.
Myth: Reducing Your Limits Can Help Your Score
Like the old account myth above, this is an action that can actually hurt your credit. Potential creditors want to see low utilization of credit, as it signifies that you can be trusted.
Myth: You should always keep a balance on your cards.
The truth is, credit reporting companies have no way to know whether you are keeping a balance on your cards. Your credit card debt is reported once a month, usually when your statement goes out. Whether you pay in full each month or leave a bit unpaid won’t be noticed. Plus, credit scoring bureaus tend to give higher scores to those who use only a small portion of their available credit. Don’t carry a balance if you don’t have to and save yourself unnecessary interest payments.
Myth: Looking at your own credit score counts against you.
When you look at your own score, this is known as a soft pull. Credit reporting agencies are only concerned about hard pulls; that is, ones that indicate you are shopping for more credit. In reality, you should look at you scores from all three agencies at least once a year to ensure that everything is accurate. Make sure that you request the information directly from the three credit reporting bureaus. If you buy your score from a third party, this can appear to be a hard pull.
Being educated about what helps and what hurts your credit score can make you a more savvy consumer and open up new opportunities. As you work to improve your credit and accomplish dreams of owning a home, learn all you can and apply it to your financial health.
Should You Consolidate Your Loans? – Advice
Many of us have a lot of different debts we are juggling: auto loans, student loans, a credit card or two. Have you ever wondered whether you would be better off consolidating these debts? It all depends on what you are trying to accomplish. There are both benefits and drawbacks to consolidating.
A few things to consider:
Is your goal to reduce your monthly financial obligations? Consolidating debt into one longer term loan can lower monthly payments. This can be a good option if you are simply unable to pay the amounts you currently owe per month and are in the credit repair process. But, there is often a trade off in the form of a longer term on the loan. You could be making payments for years longer than you would without consolidation. This can add thousands of dollars in excess payments.
Consolidating can be convenient. Many people like the ease of paying a single bill every month. But, there are other options for simplifying bill paying, such as automated withdrawals, that do not have the potential drawbacks of consolidation. If convenience is your only reason to consolidate, it would be better to reorganize the way that you pay your bills instead.
Consolidation can be smart if it locks in a lower interest rate. This will not always be possible if you have a low credit score. But, if you have a lot of debt on high-interest credit cards, you may be able to find an installment loan at a lower rate. Consider both the interest rate and the monthly payments to figure out whether you’d be getting a better deal.
In some circumstances, consolidation can improve your credit rating. For instance, if you have a number of credit cards that are close to their spending limits, paying them off with a consolidation loan can raise your score. This can be a boon if you are working towards a home purchase and are just a few points shy of loanable. But, a debt consolidation loan will require a hard check of your credit, which can slightly lower your score for a short time.
Look into DIY debt consolidation by transferring balances. Do you have a low-interest credit card with a high limit? It could be possible to consolidate some of your debt by using that card to pay off other, higher interest, loans.
Research well to avoid scams. Be sure you are dealing with a reputable company, particularly when you are looking for consolidation loans online. Your best bet is to check first with your local bank or credit union and then with social lending sites like LendingClub.com. Be wary of sites that advertise debt consolidation services but who actually offer debt management, a service where they merely pay your current installment or revolving loans for you, for a price.
The best thing for your credit is to lower your balances overall. Whether you opt to consolidate or not, the most important way to improve your credit is to lower your levels of debt. By paying down debts, you increase your unused credit, and gradually improve your credit worthiness, making your home owning dream closer to coming true.
Fair Debt Collections Practices Act – TIPS
If it’s happened to you, you’re not alone: job loss, unexpected expenses or other issues can leave you with less-than stellar credit. But, bad credit can hold you back in a myriad of ways. It can destroy home purchase dreams, keep you from getting the job you want and cost you more when you apply for everything from cell phone contracts to credit cards.
It can take some time and involve a few headaches, but, credit repair can restore all of those lost opportunities.
As you embark on your credit repair mission, it is important to know your rights when dealing with creditors. There are a number of things that, by law, they can and cannot do. Prohibitied actions include:
Calling outside the hours of 8am to 9pm. Creditors who call earlier or later are breaking the law.
Publishing your name or address on a “bad debt” list.
Contacting you at your place of work after you have asked them not to.
Contacting you after you have sent a written request to cease communication.
Talking about your debts to a third party.
Using abusive or profane language.
Seeking unjustified amounts. This includes adding unreasonable fees and penalties to your debt.
Reporting false information on your credit record.
Threatening you with imprisonment for your debt.
There are also certain things that creditors must do when attempting to collect a debt:
They must identify themselves during all communications. It’s illegal for them to, for instance, pretend to be someone else so that you will talk to them on the phone.
They must give you written verification of a debt when you request it in writing.
They must notify you of your right to dispute a debt. This gives you the power to fight back if they are trying to hold you responsible for a debt that is not yours.
Dealing with a harrassing creditor? Take the following steps:
Keep records of everything. Write down when they contact you by phone and keep every item that they mail.
Communicate in writing. When sending a request that they stop calling your job or sending repeated communications to your home this can help ensure that you have a verifiable paper trail.
File a complaint with your state Attorney General’s office and the FTC. Your state may have its own debt collection laws that give you extra protection. The Attorney General can help you determine whether a creditor has violated state law.
If harrassment persists, you may be entitled to sue the creditor within a year of the violation. You do not have to have provable losses; the judge can order the creditor to pay you up to $1,000, plus any verifiable medical or wage losses that occur as a result of the harrassing practices.
Knowing your rights under the law can save you a lot of the stress associated with dealing with unreasonable or unethical creditors. Protect yourself as you work toward your goals and improve your financial outlook.
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Probably the greatest idea an individual could apply when trying to fix their credit rating is to learn the best ways to spending plan their money. Offer your self a concrete as well as set quantity you could manage to pay down your debt monthly and also you will have a far better idea about exactly how long it will certainly take you to settle all your debt.
When filing a dispute with a credit agency, supply duplicates of files that support your argument. Anything to assist the credit rating agency understand your side of the dispute will aid.
A vital suggestion to think about when functioning to fix your credit report is the truth that if you have inadequate credit report, you could not get approved for the housing that you prefer. This is necessary to consider considering that not only could you not be gotten approved for a property to purchase, you may not also certify to lease a home on your own.
Take into consideration acquiring a credit report counselor that can help you with your credit rating repair methods. Research the company prior to you join them to guarantee they are legit and also reputable. An excellent business will manage to obtain your bills level and assist you to obtain out of debt in a few years.
Do not evade the calls from collectors. You have thirty days to pay from the receipt of the collections discover just before it appears on your credit rating guide. On a regular basis, they will certainly permit you to separate the settlement into a couple of month-to-month settlements and also it will disappoint on your credit history guide.
Nothing will mend your credit besides time. If you have late settlements, defaults or even bankruptcy, your credit score will drop. There is no way to get rid of these once they have been stated. Only time and good behavior will eventually make them less as well as much less of a determining consider your credit score and the credit rating that you obtain.
If you have been distressed and really felt inhibited about your bad credit history, take these pointers and also utilize them to transform that. These ideas could help stop the freefall of your credit score and also begin making your score rise. Keep your concentrate on improving your credit score and also you’ll be simply fine.
Luckily, there are ways to improve it as well as you could acquire begun by having an appearance at these credit history maintenance and repair pointers.
Consider obtaining a credit therapist to assist you with your credit report maintenance and repair methods. Simply time as well as good actions will eventually make them less and also less of an establishing aspect in your credit score and the credit that you receive.
If you have been irritated as well as felt prevented regarding your bad credit report score, take these tips and utilize them to alter that. These pointers can help quit the freefall of your credit score and also start making your credit score surge.
Beat The Debt Collectors
Collection Methods … Win The Game!
Have you ever wondered why points occur in multiples? Many times it is of our very own doing, yet sometimes there appears to be some undetected force creating these issues. More later!
An analysis of your credit record will most likely give you a sign of exactly how particular bodies run. Indicators are that at least 75 % of the guides are wrong or deliberately incorrect.
On the subject of credit report records: It is your duty to see to it the access are appropriate. Credit reporting companies do not care if the information offered to them by debt collectors is accurate or otherwise! Realize the fact that credit rating reporting firms receive a bunch of cash from collection agencies, and so on. Memberships by companies, financial institutions and the like make their presence possible! It does not matter if the reports were purposely false, or constructed of spite, or perhaps entered with untrue dates, amounts or nonexistent companies.
While the above paragraph paints a miserable picture, the activities are indeed illegal, as well as also usually go unchallenged, since folks are unaware of the circumstance or are so daunted by the press reporters of info that they reluctantly approve them.
To refer back to the very first statement (points occur in multiples): Often times when a collector checks out a credit record he/she understands numerous accounts behind and also thinks that the person in question does not test reports or does not know concerning the records and assumes he/she could be quickly frightened and also persuade the debtor into fast pay. Additional details included in the credit history guide likewise includes where the individual is utilized and also if repayments have actually loomed to various other companies so the broker once more presumes the individual desires to pay the debts.
By the time the financial obligation reaches this point many fines, passion and also other costs have been included that the initial financial obligation is numerous times the initial amount. This profiteering is why agencies are so incessant in their intimidation. Bear in mind the representatives are experienced in this “career”.
It is important that you arm on your own with know-how: Get a record of your credit rating as well as figure out if the details is proper. You could quickly obtain the information you have to test the debt, stop bothering phone calls, require proof of financial obligation as well as overall stand up to unruly intimidation tactics. See here.
An essential extra action is to get command of your finances (never ever permit a collector command your own). There many publications and institutional entities that provide excellent guidance as well as help. Be mindful that several largely marketed financial obligation alleviation as well as advising services are worse compared to the collectors in integrity and sincerity.
One last word: Never Make Your Financial Choices From Concern!
On the topic of credit rating records: It is your duty to make certain the entries are proper. Credit history reporting companies do not care if the details offered to them by creditors is precise or not! Be aware of the fact that credit report reporting agencies obtain a lot of money from collectors, and so on. It is critical that you equip yourself with expertise: Get a report of your credit history as well as determine if the information is right.
Erroneous entries on your credit report can drag your score down. And, that is why federal law requires that debts be either validated or removed when they are challenged. But, can the debt come back to haunt you after you’ve gotten it removed? The answer is that it depends on why and how the account was deleted in the first place.
If personal finance issues make you want to pull the covers over your head, it can be hard for you to know whether you’re coasting along okay or whether you need help with your credit score.
