Credit Resoration Articles

"Statue of limitations" for a delinquent debt is the time limit for the creditor to file a lawsuit. Before making payments on a collection account I would advise contacting a credit specialist. Making payments on an aged debt will update the date of last activity which will renew the statue of limitations. Statue of limitations varies from state to state. For additional information you may contact our office for a consultation @ 1-866-217-9841

Can any creditor garnish your wages? A: It depends if you live in a wage garnishing state. The Government can garnish your wages in any state. This will include back pay child support or any back taxes owed to the IRS. For additional information you may contact our office @ 1-866-217-9841

Did you know that FICO scores are evaluated by 5 main categories of information? Category 1: Payment history = 35%. Late payments, collections, and bankruptcies all affect your payment history. It is important to make on time payments in order for the accounts to reflect "paid as agreed" status. Maintaining a positive payment history will help ensure competitive interest rates and optimal terms when applying for credit.

"Revolving Credit" is and account where the balance does not need to be paid in full every month by the borrower. A specified minimum payment is required by the lender each month. The minimum payment includes an interest rate or service charge. Revolving accounts generally have terms and payments that vary according to the account balance.

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Why is good credit so important? Today’s economy runs on credit. Your credit worthiness is a three-digit score and the determining key to your financial future. Your credit profile is viewed when needing to obtain a mortgage loan, student loan, personal loan, credit cards, apartment/ rental property, utilities, insurance, cell phone service, and at times even to obtain a new employment opportunity. For additional information you may contact our office @ 1-866-217-9841

Installment Loans" are those that have a fixed payment for a fixed period of time. Payments will be the same amount every month until the loan is paid in full. Lenders Charge an annual % rate (also known as APR) on the amount of the loan. This is how lenders make a profit.
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"Inquiries" a HARD INQUIRY is when you initiate by filling out a credit application. SOFT INQUIRIES are from companies that want to send out promotional information to a prequalified group or current creditors monitoring your credit. Remember "Buffer Period" ignores inquiries within 45 days of getting a mortgage or car loan. It also counts two or more hard inquiries in the same 14 day period as one inquiry. For additional information you may contact our office @ 1-866-217-9841

Your credit score is a number, calculated based on information in your credit report, that lenders use to assess the credit risk you pose and the interest rate they will offer you if they agree to lend you money.It may be a good idea to review your score if you anticipate applying for a major loan, in the next six months to a year. That allows time to bring your score up if you fear it's too low. For additional information you may contact our office @ 1-866-217-9841

Payment History includes information on the extent to which the subject has made timely payments on loans (mortgage,car,personal) and charge accounts. Delinquencies reduce the score, while timely payments raise it.Payment history also includes information on bankruptcies, foreclosures, legal judgments, liens, and wage garnishments.These will have a major adverse impact, although the impact declines with the passage of time. For additional information you may contact our office @ 1-866-217-9841

Basic breakdown of how long different types of negative information will remain on your credit report. Late Payments: 7 years, Foreclosures: 7 years, collections: generally, about 7 years depending on the age of the debt being collected, Public Records: generally 7-10 years, although unpaid tax liens can remain indefinitely. For additional information you may contact our office @ 1-866-217-9841

What is a credit report? A credit report is a record of your financial behavior that is kept by credit bureaus and provided to businesses when they want to evaluate potential borrowers. There are three national credit bureaus that maintain credit reports on consumers – TransUnion, Equifax and Experian.
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Have you ever co-signed for a loan? When you co-sign, you are agreeing to be fully responsible for the debt. And by law, if the issuer reports debts to a credit-reporting agency, it must report that information under the co-signer’s name as well as the primary account holder’s. This includes late payments, charge offs, and repossessions. For additional information you may contact our office @ 1-866-217-9841

The "Statute of limitations", in regards to your credit profile, is the length of time a creditor or debt collector can take legal action against you. It is also the maximum length of time an adverse item can lawfully be reported on your credit report. This varies from state to state and averages 4-6 years. We highly recommend you familiarize yourself with the statute of limitations in your home state.
For additional information you may contact our office @ 1-866-217-9841

How quickly does paying down a credit card affect my score?
It often doesn’t take that long for balance decreases to have a positive impact on your score. However, before a credit card can have a positive affect on your scores two things need to happen:

1) the credit card company needs to report the balance decrease to the credit bureaus.
2) the credit bureaus need to update your credit report with the balance decrease.

Absence of a Credit Score
Not every credit file qualifies to receive a credit score. There are minimum scoring requirements to ensure that scores are delivered as accurate as possible. There are several reasons why credit score might not appear on a credit report, including:

The consumer has not has any activity on open accounts in the past six months
The consumer has insufficient credit history to calculate a score—new credit or not enough established credit. Generally, two years of credit history is needed to obtain a score
The parameters of the file are too large—the file contains mote than 100 trade lines and inquiries combined
Incomplete data was entered to access a report (e.g., generation code or middle initial required by credit bureau to provide a file and score)
The consumer has been reported to the credit bureaus as having died
The consumer reported being a victim of fraud
The consumer has an additional unmerged credit file with any of the three credit reporting agencies
Incomplete residence history was entered to access a credit report (2-year minimum required)

Dispute Bad Credit

First step to disputing bad credit is to request a copy of your credit report. Once you have a copy of your credit report look for errors, inaccurate items, or items that are misleading. Errors usually occur when a company does not have adequate information on an individual and reports to the credit bureaus using only a name. When you dispute bad credit the credit bureau has 30 days by law to verify the information. If the information cannot be verified it will be deleted.

Note that whether the account is "really" yours or not has no bearing on their responsibility to verify it. If it cannot be verified, it must be deleted.