What are the Most Common Credit Scores Problems?

1. Late Payments – Not considered late until 30 days past the due date. 60 or 90 day late payments are more negative than a 30 day late. The age of late payments can influence credit scores. Recent late payments are considered worse than older ones. More serious issues include: consumer credit counseling, collections, bankruptcy, and foreclosure.

2. Outstanding Debt – Having a large number of open accounts with balances may reduce your credit scores. Another issue is the ratio of your credit limit compared to the current balance. Using 75% of your credit limit is a greater risk than using 25%.

3. Account History – Older credit accounts can have a positive effect on credit scores, as long they are not delinquent. Having recently opened accounts could reduce your scores. Also, multiple credit inquiries are a flag indicating a possible new account.

How Do You Correct Credit Report Errors?

Incorrect information can sometimes appear on a credit report. If you believe there is a potential error on your credit report, you are entitled to dispute the accuracy of the information. The federal Fair Credit Reporting Act gives you the right to challenge inaccurate information by contacting the reporting agencies, and the company who reported the information. Under the FCRA, they are responsible to correct any errors on your credit report free of charge, and within a specific time limit.

The credit bureaus, Experian, Equifax, and Transunion, are required to investigate your dispute within 30 days of reporting the potential error. They will contact the source of the derogatory information and try to confirm the record. Providing documentation to support your claim, if you have any, can also expedite the process. If the credit bureaus are unable to confirm the derogatory information from the source, the item must be removed from your credit report, which can improve your score.

Information on mortgage refinance, home equity loans, and San Diego new homes

Bankruptcy Claims Video

Are you sure that bankruptcy is the only way to repair your credit and get rid of your debts? If you think you have no other alternatives, you may be wondering, how do file bankruptcy.

You’ll need to be aware of the process that comes along with filing, so here are some ways that you can prepare yourself.

First, and most importantly, you will need to take a good look at your finances, perhaps with an accountant, to be certain that there is no other option for you but bankruptcy. A bankruptcy can stay on your credit for about 8 years, and during this time, you may not be able to purchase a home, buy a new automobile, or receive a line of credit from a loan or credit card company.

So, if there are other ways for you to mend your finances without having to take this step, talk it over with your accountant.

Also, under the Bankruptcy Abuse Prevention and Consume Protection Act, you must receive consumer credit counseling from company that the U.S. Trustee has approved within 180 days of the filing of your case.

Then, you’ll need to determine exactly how you want to file. Chapter 7 bankruptcy is becoming less common, since Chapter 13 will help individuals in the long run, and involves financial organization.

Under Chapter 7 bankruptcy, an individual must sell valuable items and use the money to repay debts. This could be a fairly unstable way to pay off debts, since there are no guarantees that the items will sell in a timely manner.

When looking at bankruptcy claims; it pays to consult professionals as a smart way to move forward.

Chapter 13 involves wage garnishment, which means that a certain amount will be taken from your paycheck each pay period in order to settle the debts you owe.

If you still wondering how to file for bankruptcy you may want to take some bankruptcy classes so that you will have a better understanding of the process.

Completing the ‘assignments’ given in class may help you to reach your financial goals faster, and will teach you about things like getting the best insurance policy for yourself, your home, and your automobile, creating the most realistic budget for paying off your debts, and using your credit wisely.

What about costs involved? Filing a claim could cost up to $1,700, but you may be able to pay in installments depending on the state that you file your claim in. If you are filing Chapter 7, you will have to pay your fees upfront, but your payments can be included in your overall payment plan for Chapter 13.