When you get a health evaluation from the doctor you expect to get a clear and precise daignosis. Certain test performed will determine your overall health condition. It is the same with your credit. If you arent making routine check ups on your credit, it can become a major issue down the line. Following simple steps cant get you an overall prognosis of our current credit profile
First obtain a copy of your credit report.
This can be obtained by visiting all credit bureaus, www.experian.com, www.transunion.com and www. equifax.com. You are entitled to a free credit report every year. Visit www.annualcreditreport.com.
Next find out your credit score
Not all orders for credit will inclue a credit score. The most universal credit scoring system is created by FICO. Go to www.fico.com in order to determine where your credit score stands on their chart.
Review the report
Look at all the information to make sure that it is correct. It is important to look for non credit information as well. Items such as address both current and past are a good indicator of fraudulent activity. Make sure the addresses are correct. Check recent inquiries to make sure you intiated those request. Also look for accounts both current and delinquent for accuracy.
Then come with a game plan. View the Game Plan Blog for more information.
Thursday, May 7, 2009
Stay Ahead of the Curve
Once all the smoke clears with the financial crunch, there will be two type of people. Those that worked on their credit and those that didnt. Which line will you be in?
Take advantage of this opportunity to gain knowledge and make important decisions regarding your credit and financial situation. People are paying more attention to their credit by taking appropriate actions in developing their financial profile. Where will you be when the smoke clears?
Take advantage of this opportunity to gain knowledge and make important decisions regarding your credit and financial situation. People are paying more attention to their credit by taking appropriate actions in developing their financial profile. Where will you be when the smoke clears?
Tuesday, April 21, 2009
Credit- Inquiries
Every time your credit is pulled it is classified into two different categories. It is either a hard or a soft inquiry. The soft inquiries don't have any effect on your credit. These are times in which your credit is pulled by 3rd parties for promotional purposes and or skip tracing
reasons. The hard inquiries, have a negative effect on your score. That's why its important to apply for credit sparingly. According to FICO, even though credit inquiries stay on your report for about 24 months, they only consider the last 12 months while determining your score. If you find that there are "hard" inquiries on your report, immediately contact the credit bureau to get these removed.
reasons. The hard inquiries, have a negative effect on your score. That's why its important to apply for credit sparingly. According to FICO, even though credit inquiries stay on your report for about 24 months, they only consider the last 12 months while determining your score. If you find that there are "hard" inquiries on your report, immediately contact the credit bureau to get these removed.
Wednesday, February 25, 2009
CCCS & DEBT SETTLEMENT COMPANIES
3rd Party Credit Helpers
Debt management companies and settlement companies can prove to be helpful in negotiating payments for you. However it seems rather ridiculous to pay someone to set up arrangements for you especially when you are already in debt. Many of the companies attempt to set up arrangements you can do yourself. If you want to save some money here are some tips in negotiating payments and settlements.
DEFINTION:
A debt management company is hired on the behalf of the consumer/debtor in an attempt to set up payment arrangmetns.
A debt settlement company is hired on behalf of the consumer/debtor in an attempt to achieve a settlement amount that is agreeable by both the consumer/debtor and the creditor
A settlement is a agreement that both the creditor/agency agrees to accept in order to satisfy the debt.
FOR SETTLEMENTS
1. Find out the best settlement available.
2. Find out deadline date
3. Find out wheter or not it can be split into payments
FOR PAYMENTS
1. Find out if there is any interest that is currently accumulating.
2. Determine the amount you can pay
3. Contact the agency or creditor and ask for payment plan options
4. Find out the ramifications of noncompliance
5. Determine whether or not you can meet their demands
6. If not then counter offer until a reasonable amount is agreed upon.
MISCONCEPTIONS:
Debt settlement/management companies sheild/protect their clients from further collection attempst. This is not correct. The company only sends a power of attorney prohibiting the agency or creditor from contacting you.
While enrolled do not pay your creditors until a specific timeframe has passed, instead pay the settlement/managment company you hired
This is wrong. Your credit report is still being dingged. It doesnt matter that the agency and company has accepted terms or not. Your credit will most likely be negatively hit. And if this is not an issue to you, then there really isnt any need for you to have a settlement/mangment company.
While enrolled you cant be sued or garnished.
The legal binding contract is between you and the creditor or now debt holder. There is no law that protects you from this unless you opt to file for bankruptcy. Then you have to consult your attorney for that.
Everyting is fine. You have turned it over to the co and there is no need to keep in contact wiht the original creditor or collection agency or law firm.
Incorrect. Many people find that when they contact the agency, that the agency has not been notified by the debt management company or settlement company. Often times the collection agency cant contact you due to the Power of Attorney in place to let you know that the managment company refuses to return their calls.
Debt management companies and settlement companies can prove to be helpful in negotiating payments for you. However it seems rather ridiculous to pay someone to set up arrangements for you especially when you are already in debt. Many of the companies attempt to set up arrangements you can do yourself. If you want to save some money here are some tips in negotiating payments and settlements.
DEFINTION:
A debt management company is hired on the behalf of the consumer/debtor in an attempt to set up payment arrangmetns.
A debt settlement company is hired on behalf of the consumer/debtor in an attempt to achieve a settlement amount that is agreeable by both the consumer/debtor and the creditor
A settlement is a agreement that both the creditor/agency agrees to accept in order to satisfy the debt.
FOR SETTLEMENTS
1. Find out the best settlement available.
2. Find out deadline date
3. Find out wheter or not it can be split into payments
FOR PAYMENTS
1. Find out if there is any interest that is currently accumulating.
2. Determine the amount you can pay
3. Contact the agency or creditor and ask for payment plan options
4. Find out the ramifications of noncompliance
5. Determine whether or not you can meet their demands
6. If not then counter offer until a reasonable amount is agreed upon.
MISCONCEPTIONS:
Debt settlement/management companies sheild/protect their clients from further collection attempst. This is not correct. The company only sends a power of attorney prohibiting the agency or creditor from contacting you.
While enrolled do not pay your creditors until a specific timeframe has passed, instead pay the settlement/managment company you hired
This is wrong. Your credit report is still being dingged. It doesnt matter that the agency and company has accepted terms or not. Your credit will most likely be negatively hit. And if this is not an issue to you, then there really isnt any need for you to have a settlement/mangment company.
While enrolled you cant be sued or garnished.
The legal binding contract is between you and the creditor or now debt holder. There is no law that protects you from this unless you opt to file for bankruptcy. Then you have to consult your attorney for that.
Everyting is fine. You have turned it over to the co and there is no need to keep in contact wiht the original creditor or collection agency or law firm.
Incorrect. Many people find that when they contact the agency, that the agency has not been notified by the debt management company or settlement company. Often times the collection agency cant contact you due to the Power of Attorney in place to let you know that the managment company refuses to return their calls.
READING & UNDERSTANDING YOUR CREDIT REPORT
You need to obtain a copy of your credit report from the real credit reporting agencies. I have found that some of the companies that provide online credit report information may miss all the information that appears on your credit report.
You are intitled to free credit report annually and if you are denied credit based upon a decision made by looking at information from your specific credit report. Go to these websites for more information:
EXPERIAN, EQUIFAX, TRANSUNION
www.experian.com
www.equifax.com
www.transunion.com
ERRORS:
Any descrepancy or error on your credit report needs to be addressed. Contact the entity that is reporting on your credit report to get clarification. It may be a agency that has purchased the debt and you acutally owe the account. In the event this happens you have to take responsibility. In the long run, running from the debt makes a long drawn out situation worse. Be honest, and take accountablilty
If the account is reporting in error. Dispute with the company that is reporting negativley, and the credit bureaus that are reporting it.
INSTALLMENT LOANS
Auto, mortgage
You are intitled to free credit report annually and if you are denied credit based upon a decision made by looking at information from your specific credit report. Go to these websites for more information:
EXPERIAN, EQUIFAX, TRANSUNION
www.experian.com
www.equifax.com
www.transunion.com
ERRORS:
Any descrepancy or error on your credit report needs to be addressed. Contact the entity that is reporting on your credit report to get clarification. It may be a agency that has purchased the debt and you acutally owe the account. In the event this happens you have to take responsibility. In the long run, running from the debt makes a long drawn out situation worse. Be honest, and take accountablilty
If the account is reporting in error. Dispute with the company that is reporting negativley, and the credit bureaus that are reporting it.
INSTALLMENT LOANS
Auto, mortgage
DEBT & CREDIT EDUCATION
Debt is not the Death of Financial Security.
There are two types of debt in my book.
GOOD DEBT and BAD DEBT
Good Debt is debt that helps build your credit portfolio. It it was a good credit report is made of. Purchasing everything with cash doesnt provide potenial creditors an idea of how responsible you are with your finances. If you never plan to obtain credit then this blog isnt for you. But for the rest of us that realize the importance of obtaining and having a healthy debt profile let us know.
Bad Debt is inherited when the consumer fails to pay as agreed and this information is reported to the credit bureau. It is much easier to ruin your credit that it is to build or rebuild credit. It takes time. Look at your credit like a lifetime relationship you have with yourself. If you mistreat it, it will leave you high and dry. If you take care of it , when you need it , it will take care of you.
CREDIT:
Credit is reported on the major credit bureau's, Equifax, Experian and Transunion. See previous blogs about obtaining credit report. You need to get a credit report and make sure you are taking care of your financial responsiblities and make sure there arent anything that is on your credit report that is damaging. You can do only three things to you credit score
BUILD
You build by obtaining credit through a entity that will report your payments to the credit bureau. Start of small, you may not get the best interest rate but its a start. Many try to get department store credit cards, high interest cards and or secured credit cards. It may be costly intially but the rewards will be great. That will allow other creditors to see you have a consistent payment history. If you are timely with your payments ofcourse.
DESTROY
This part is simple. Just dont pay on time or better yet dont pay at all.
REBUILD
You have to re evaluate your credit report. Obtain a copy, and start prioritizing which ones will get paid off first.
YOUR CREDIT SCORE CAN BE LOW EVEN IF YOU NEVER MISSED ANY PAYMENTS IF:
1. Your available credit is very low.
2. Your debt to income ration is low
3. You have many inquiries in a short period of time usually 6-12 months
4. You have filed bankruptcy recently
5. If you are establishing your credit.
6. If you have late payments
7. If you have missed payments
8. If you have a judgement reported
9. If you go over your credit limit
There are two types of debt in my book.
GOOD DEBT and BAD DEBT
Good Debt is debt that helps build your credit portfolio. It it was a good credit report is made of. Purchasing everything with cash doesnt provide potenial creditors an idea of how responsible you are with your finances. If you never plan to obtain credit then this blog isnt for you. But for the rest of us that realize the importance of obtaining and having a healthy debt profile let us know.
Bad Debt is inherited when the consumer fails to pay as agreed and this information is reported to the credit bureau. It is much easier to ruin your credit that it is to build or rebuild credit. It takes time. Look at your credit like a lifetime relationship you have with yourself. If you mistreat it, it will leave you high and dry. If you take care of it , when you need it , it will take care of you.
CREDIT:
Credit is reported on the major credit bureau's, Equifax, Experian and Transunion. See previous blogs about obtaining credit report. You need to get a credit report and make sure you are taking care of your financial responsiblities and make sure there arent anything that is on your credit report that is damaging. You can do only three things to you credit score
BUILD
You build by obtaining credit through a entity that will report your payments to the credit bureau. Start of small, you may not get the best interest rate but its a start. Many try to get department store credit cards, high interest cards and or secured credit cards. It may be costly intially but the rewards will be great. That will allow other creditors to see you have a consistent payment history. If you are timely with your payments ofcourse.
DESTROY
This part is simple. Just dont pay on time or better yet dont pay at all.
REBUILD
You have to re evaluate your credit report. Obtain a copy, and start prioritizing which ones will get paid off first.
YOUR CREDIT SCORE CAN BE LOW EVEN IF YOU NEVER MISSED ANY PAYMENTS IF:
1. Your available credit is very low.
2. Your debt to income ration is low
3. You have many inquiries in a short period of time usually 6-12 months
4. You have filed bankruptcy recently
5. If you are establishing your credit.
6. If you have late payments
7. If you have missed payments
8. If you have a judgement reported
9. If you go over your credit limit
Legal 3rd Party Collections
LEGAL COLLECTION AGENCIES
These are collection agencies that are owned and operated by law firm. They are able to file law suits and obtain judgments.
TERMS:
A lawsuit is a case in a court of law involving a claim, complaint, from one party against another.
A judgement is a judicial decision affirming an obligation, such as a debt.
A garnishment is a court order for an employer/bank to withhold all or a portion of wages/deposits.
SUMMARY:
Usually if an account isnt resolve with the original creditor, it is sent to a third party agency or a lawfirm. In most cases, the law firm is the last resort. In many cases, a third party agency that purchase the debt may send it to a law firm for collection. Law firms have more legal authority to get the funds paid. It is always in your best interest to contact the law firm in order to work out option to get this repaid asap.
TIMELINE:
1. law firm will locate you, or party that knows you
2. process paperwork for law suit against you in the county in which you reside
3. hire a process server to serve papers on you or a party that knows you
4. if you fail to respond, appear the suit will be filed
5. the next step is for them to obtain a judgement against you
6. after judgement is granted, they can persue your assets
TIPS:
1.Once you recieve letter from law firm contact them.
Its too late to be afraid about the ramifications of your noncompliance.
2. Try to find out what paperwork has been filed against you at the present time
3. Find out about the balance and if interest is being accumulated.
4. Try to work out a way to get this paid
5. Be honest about your financial situation.
DONT'S
1. IGNORANCE:
Do not argue with them it will get you no where. Remember, they can garnish you without ever speaking with you. So don't allow your emotions to get into the way of taking care of business.
2. BE ACTIVELY INVOLVED:
Do not believe what any 3rd party agency would tell you about the legalities. Research your state laws in order to find out what you are up against.
3. KEEP IN COMMUNICATION:
Never cut off communication with the law firm. Regardless if you have hired a 3rd party agency such as cccs, debt management company or settlement company. The law firm has the law on their side.
4. GET ALL THE DETAILS:
If eligible for repayment plan, do not assume that legal actions will cease. Many will still obtain a judgement against you in order to secure the payment in the event you default. This is totally legal.
MISCONCEPTIONS:
If I never received the petition and summons, I am not responsible for the debt; The suit/judgement is null and void. FALSE
Anyone that resides at your last know address, that is over the age of 16 can accept a summons and petition on your behalf if they acknowledge they know you. Even though they may forget to tell you.
If your pay check/bank account is garnished the law firm is in violation for not advising you of their actions prior to the garnishment.
If the judgment is granted and the funds are not exempt you have no claim to the funds.
They are not obligated by any measure to advise you that they intend to garnish your wages or account.
They already garnished my account for a portion of the funds, the will not retry to garnish again.
Currently there is no limit that I am aware of to the number of times the garnishment can be issued. If the balance is still owed, then with the judgement in place, they can continue until pif has been accomplished.
They have to accept any settlement, arrangement in lieu of garnishment.
This is false. A settlement is merely a benefit to you, the consumer. It benefits the creditor in no way at all. No one is obligated to give the consumer a settlement.
Being enrolled in a Consumer Credit Conseling Program, Debt Settlement Program, Debt Managment Program will cease all legal collection activites.
No agency can protect you from the legal ramifications that are associated with the collection of a debt if the debt is legitimate and the agency is following legal protocol. Many people across America are fooled into paying these agencies, and some of these are free, however, they are placing their faith that these companies stops every thing. They don't.
These are collection agencies that are owned and operated by law firm. They are able to file law suits and obtain judgments.
TERMS:
A lawsuit is a case in a court of law involving a claim, complaint, from one party against another.
A judgement is a judicial decision affirming an obligation, such as a debt.
A garnishment is a court order for an employer/bank to withhold all or a portion of wages/deposits.
SUMMARY:
Usually if an account isnt resolve with the original creditor, it is sent to a third party agency or a lawfirm. In most cases, the law firm is the last resort. In many cases, a third party agency that purchase the debt may send it to a law firm for collection. Law firms have more legal authority to get the funds paid. It is always in your best interest to contact the law firm in order to work out option to get this repaid asap.
TIMELINE:
1. law firm will locate you, or party that knows you
2. process paperwork for law suit against you in the county in which you reside
3. hire a process server to serve papers on you or a party that knows you
4. if you fail to respond, appear the suit will be filed
5. the next step is for them to obtain a judgement against you
6. after judgement is granted, they can persue your assets
TIPS:
1.Once you recieve letter from law firm contact them.
Its too late to be afraid about the ramifications of your noncompliance.
2. Try to find out what paperwork has been filed against you at the present time
3. Find out about the balance and if interest is being accumulated.
4. Try to work out a way to get this paid
5. Be honest about your financial situation.
DONT'S
1. IGNORANCE:
Do not argue with them it will get you no where. Remember, they can garnish you without ever speaking with you. So don't allow your emotions to get into the way of taking care of business.
2. BE ACTIVELY INVOLVED:
Do not believe what any 3rd party agency would tell you about the legalities. Research your state laws in order to find out what you are up against.
3. KEEP IN COMMUNICATION:
Never cut off communication with the law firm. Regardless if you have hired a 3rd party agency such as cccs, debt management company or settlement company. The law firm has the law on their side.
4. GET ALL THE DETAILS:
If eligible for repayment plan, do not assume that legal actions will cease. Many will still obtain a judgement against you in order to secure the payment in the event you default. This is totally legal.
MISCONCEPTIONS:
If I never received the petition and summons, I am not responsible for the debt; The suit/judgement is null and void. FALSE
Anyone that resides at your last know address, that is over the age of 16 can accept a summons and petition on your behalf if they acknowledge they know you. Even though they may forget to tell you.
If your pay check/bank account is garnished the law firm is in violation for not advising you of their actions prior to the garnishment.
If the judgment is granted and the funds are not exempt you have no claim to the funds.
They are not obligated by any measure to advise you that they intend to garnish your wages or account.
They already garnished my account for a portion of the funds, the will not retry to garnish again.
Currently there is no limit that I am aware of to the number of times the garnishment can be issued. If the balance is still owed, then with the judgement in place, they can continue until pif has been accomplished.
They have to accept any settlement, arrangement in lieu of garnishment.
This is false. A settlement is merely a benefit to you, the consumer. It benefits the creditor in no way at all. No one is obligated to give the consumer a settlement.
Being enrolled in a Consumer Credit Conseling Program, Debt Settlement Program, Debt Managment Program will cease all legal collection activites.
No agency can protect you from the legal ramifications that are associated with the collection of a debt if the debt is legitimate and the agency is following legal protocol. Many people across America are fooled into paying these agencies, and some of these are free, however, they are placing their faith that these companies stops every thing. They don't.
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