Judgment on your Credit Report? Top 4 Ways to Resolve Them
November 10, 2016
Judgment on your Credit Report? Top 5 Ways to Resolve Them
Owing money that you cannot pay back is scary thing. This can cast a shadow over many parts of life, from finding a job to applying for a car loan. But, what may be even worse is finding out that you have already been sued for debt and didn’t even know about it. If a creditor or collection agency has sued you then that results in a money judgment. This means that a court has ruled against you and your debt is a matter of public record.
A Judgment on your Credit History with loan defaults and repossessions is one of the biggest negative hits to your credit score. FICO score considers these judgments as negative, whether it is paid or unpaid. And, once the judgment is satisfied the status will be updated on your report to show that it has been satisfied or settled, but it will not be deleted immediately. So, you could easily judge why removal of judgment from credit history is pretty big deal.
Here are five ways to deal with a judgment:
- Fight back the decision: Most debt judgment are not available to consumers. Often these one-sided default judgment can be erased, giving the debtor another chance to fight the charges. The creditors case may even crumble in court, if it lacks document. However, trying to handle it yourself is bit tricky. Get in touch with experts, if you believe that you are victim of improper service.
- Pay it off or settle it: One of the main things people will do to get a judgment taken off from their credit report is pay it. Either full or partial, pay your debt to owe a part of negotiated settlement. A settlement in ready funds is a bird in the hand. Make sure the creditor agrees with “Satisfaction of Judgment” when you pay or settle down the agreed amount.
- Remove the judgment from credit score: Remove a judgment from credit report and watch a significant increment in credit score. File a motion to have judgment vacated based on technicality errors in the complaint or the judgment moved to another state, or the collection agency did not validate the debt. You could also file motion judgment vacated on the basis of discrepancies in the notice.
- Stay judgment proof: All legal protections exempt collection charges on people with fewer assets and least income. However, it does not mean ignorance of judgment. It’s your job to check that property, your belongings and wages completely protected from seizure by a complex web of state and federal exemptions. You need to take culinary steps to head off wrongful collection attempts, before it takes away everything.
Summary: Top 5 Ways to Resolve a Judgment on your Credit Report
Deal with the judgment in an effective manner. As judgment could almost have negative effect on your FICO score. Reach out a company that works on judgment settlement and see if there is an alternative that might work.
Garnishments on Your Credit Report – 4 Ways to Resolve Them
October 24, 2016
Garnishments on Your Credit Report – 4 Ways to Resolve Them
Ignoring your contractual debt obligations can have a very serious impact on your financial status. Garnishment, a creditor’s last-chance attempt at debt collection, hits debt holders where it hurts; their ability to fill the gas tank, pay the bills, and feed their families. It is something that you should try to avoid at all costs.
When facing debt that can’t really be paid, the best plan of action is to act early and speak to your creditors to see if you can negotiate a payment plan or achieve some sort of payment arrangement. If debt goes unpaid and overlooked, the court may interfere by issuing a judgment requiring your employer to “garnish” or withhold a bit of your wages or financial balances to pay back the debt.
The road to wage garnishment can be long and winding. Here are four things you can do to deal with wage garnishment on your credit report:
- Stay in touch with your creditor: Wage garnishment is typically a final effort by creditors to squeeze some cash out of you when they cannot seem to get you to pay your debt with a certain time frame. If you ignore them or refuse to talk to them, you put yourself in a weaker position. Try your level best to stay in contact with the creditor and work on building up a reasonable payment plan. Showing the creditor you have every motive of paying back your debt may urge them to back off for now. A creditor is much more willing to work directly with a consumer to avoid court and attorney’s costs associated with obtaining a judgement and ultimately a wage garnishment.
- File an appeal: If the wage garnishment gets approved by the court, you have all the rights to file a “claim of exemption” which shows that you cannot avail this type of pay cut as your paycheck covers all your basic living costs, including insurance, grocery bill and housing. You will need to show to the court that you would basically get behind on your consistent bills if your wages were garnished. If the court gets convinced that the garnishment will worsen your financial condition even more, they may prevent the creditor from garnishing your wages or ask the creditor to reduce the amount that is to be garnished.
- Pay the judgment amount: If you do have some funds available to pay off the full debt within ten days of the judgment, the court can put a stop on the garnishment process altogether. Before that, make sure you are aware of the judgment amount and pay it off in full as soon as you can.
Summary: Resolving Garnishments on Your Credit Report
Being aggressive when creditors are coming after you can help prevent this drastic step altogether. Try your best to work out a repayment deal with your creditors so that they stay confident that you will pay the debt within a particular time frame. This is the best way to keep creditors off your back and stop garnishments on your credit report.
How to Remove Tax Liens from your Credit Report
September 5, 2016
How to Remove Your Tax Liens from your Credit Report
Tax lien is the right of the IRS or state or country to take possession of the property in-case of negligence in paying property tax or income tax. It is filed in-order to force the tax-payer to pay his/her outstanding tax amount. However, when filed it is also recorded in the public record and then added to the consumer credit report. It can be viewed by anyone including credit reporting agencies.
Tax lien has derogatory impact on the credit score. Consumers with no other credit issues could lose 100 points with tax lien. Being one of the most difficult credit issues to overcome, it can stay on the credit report for 7 years and in certain situation, forever! Unlike other collection accounts, it is not mandatory by the law to remove it from credit report after 7 years. According to Fair Credit Reporting Act (FCRA), the tax lien may be removed from credit report, 7 years after the date of payment of outstanding tax amount.
So, How do you remove tax liens from your Credit Report?
The good news is that It is possible for consumers to remove the tax liens prior to 7 years, as long as it’s paid. The ‘Fresh Start Initiative’ from IRS has released new policy to handle tax liens. Full payment of outstanding tax amount will facilitate taxpayers to withdraw lien from credit history, upon request. Some eligibility criteria facilitates taxpayers to withdraw after a minimum of 3 payments towards the payment agreement. However, it should be noted that removing tax liens from credit history is not always possible, but customers can try a number of steps to get the lien removed.
Do You Qualify? You may request to withdraw tax lien for credit report if:
- You have paid the full amount you owe and lien has been released
- For past three years, you are in compliance with providing your individual, business returns
- You are up-to-date on your tax payment and deposits
- You owe $25,000 or less and have agreed on the direct debit installment payment toIRS, from your back account automatically.
You could ask tax professionals to learn more about the eligibility criteria. Pay the Outstanding Tax Amount:
- After full payment of you due, you may receive the IRS Form 668(Z) for ‘Release of Federal Tax Lien’
- Fill out IRS Form 12277 for ‘Application of Withdrawal’
- Submit ‘Notice of Federal Tax Lien’ IRS Form 668(Y) along with above two form to IRS and provide explanation of why you want your tax lien to be withdrawn.
- You may receive the IRS Form 10916(c) for ‘Withdrawal of Filed Notice of Federal Tax Lien’. It is also filed in the recording office where the original NFTL was filled.
You may produce these documents to the credit reporting agencies or ask IRS to to notify them.
Summary: How to remove tax liens from your credit report
Above all, send a goodwill letter to all three credit bureaus, explaining your full payment of outstanding money. Give honest reason why you defaulted. Address the issues behind tax lien and steps you took to pay what you owe. Moreover, be patient! The complete process may take months to reflect on your credit report.
Length of Credit History – Does it matter?
August 7, 2016
Length of Credit History – Does it matter?
A credit history is an assimilation of number of accounts in your credit reports, payment history, your amount of debts, and the score that is obtained after analyzing all these details. This information is used by lenders while giving loans or selling expensive products. Lenders will be basically interested in the “length of credit history” when they evaluate the paying capacity of borrowers. By length of the credit history, it means how long you have had taken credits and where does your credit score stands currently.
What is Length of Credit History
It simply means how long you have had credit; the age of the information in your credit history. Your credit report also has an age like every other tangible asset you possess. And, that age of the credit report has a 15% impact on your overall credit score. Hence, a positive or a negative credit history may influence your credit score likewise. In the world of FICO score, the Length of Credit History has a significant impact on your total credit score. This is one area where you have very little control and it is highly imperative that you develop a thorough understanding of this concept.
How is it calculated?
By knowing how Length of Credit History is calculated, you might be able to control it at some point. Credit specialists have suggested various ways and points from time to time to calculate this in the most appropriate manner. Of all the information obtained, here is the summary of factors that play a role in the calculation of the age of credit history:
1. There of customer’s oldest credit account
2. The average age of all the credit accounts opened to date
3. The age of customer’s newest credit account
4. Length of different types of credit accounts that has been established
5. Length of different types of credit accounts that has been consistently used
Out of all these, the age of the oldest account and the average age of all the accounts used to date play a crucial role.
How you can use your length of credit history to improve your FICO score?
It all comes down to your current FICO score. In general, active and current accounts have a larger influence on your current FICO score than the older accounts. The most recent activity has a greater impact on the overall credit score. However, if you have an older account that is debt-less and still active, it will fetch you a very good score than a recently opened credit account. Having old account can be, therefore, highly beneficial when it comes to improving your credit score.
Summary: Length of Credit History
Hold on to your older accounts and think twice before closing them. With older accounts active, you can easily score high in this category.
Life after Bankruptcy – 10 Strategies to Rebuild Your Credit Score
July 27, 2016
Life after Bankruptcy – 10 Strategies to Rebuild your Credit Score
Bankruptcy inflicts financial misery on more than a million Americans every year. This is most damaging thing that can happen related to credit reports. A bankruptcy may be listed on your credit report for up to 10 years and there is a good chance your credit score will be rather low until you take the necessary steps to rebuild your credit. Rebuilding your credit score after bankruptcies is the real way to get back on a better financial path.
Take necessary steps to rebuild your credit score. But before that, it is important to understand why it is effective for creating a great financial future. While applying for car loans, credit card, the financial agency or say banks first looks at FICO score and credit history to determine the liability of applicant. If the FICO scores are amidst 700 or more, means you have good score, but if lies below, it needs rebuilding. Here are some suggestions for rebuilding FICO score after bankruptcy. Adopt these strategies to rebuild the score that all work, to some effect.
- Rebuild your credit score with a secured credit card: You may need to apply for secured credit card once come out from bankruptcy so you have the convenience of not carrying cash. With secured credit card, you make a deposit into its account and you can make charges out of it like a regular debit card.
- Keep paying non-bankruptcy accounts on time: All loans are never included in bankruptcy. Keep paying on non-bankruptcy accounts on time, as positive payments will improve your credit score. Also, keep up payments on accounts that aren’t on credit report because this could be reported later and cause downfall in credit score.
- Review the credit report: If there’s bankruptcy on your credit report, it does not mean you ignore reviewing it. Review the credit report annually and obtain a copy for any erroneous information or inconsistencies.
- Pay bills on time: Prioritize on time payment of bills and due to prevent non- essential spending. Set up reminder on calender to pay bills every month on due date.
- Do not close accounts: Closing account and swearing off all credit card is not the right action to build credit score. Rather, it reduces the amount of credit available. Therefore, it is better to keep the credit lines open.
- Avoid utilizing a large amount on your credit available: Utilization of high credit during bankruptcy signals to financial trouble. Keep your debt balance to 20% or less than the credit limit all the time, even pay of the balance in full each month.
- Make a budget and limit your expenses: Figure out what you can afford to pay every month on your debts. Your budget will help manage cash flow and prevent from racking up unnecessary debt. Know the limits on your credit card to keep your balances below them.
- Add a loan down the road: Credit loans are like secured cards, which are often small amounts and are reported as positive account as long as payment are made. Buy a vehicle that is affordable and you can pay off successfully. Your credit scores will climb without any fail.
- Paying of debt: Paying of debt on time is No.1 method for improving credit score. If you have debts then bankruptcy could not wipe out. The credit score may fall and you would not get a new credit. You could erase a bad credit history and stay under a healthy credit limit.
- Go out of guilt and shame: Many Americans battling the lingering effect of great recession. Let of the shame to go and don’t dwell on negative thoughts. Adopt the right attitude, become more disciplined and educated, not to repeat the mistake again.
Summary: Rebuild your Credit Score
These 10 suggestions will surely work to build credit after a bankruptcy. However, the most important lesson is to be patient and follow the guidelines, uninterruptedly.
How to Remove a Late Payment from Your Credit Report
July 5, 2016
How to Remove a Late Payment from Your Credit Report
With many families struggling with rising living costs, the problem of late credit payments continue to grow. So what happens if you just don’t have enough to cover the minimum payment this month? Well well well let me inform you that, late payments on loans and credit cards can have devastating consequences on your short-term financial future. It will hurt your overall credit health and make you a riskier applicant in the eyes of lenders and renters.
Banks and issuers consider payment history when evaluating your credit risk and deciding whether or not to approve your credit. So, late payment can be a big deal and turn detrimental to the process. It can drastically lower your credit score and make it difficult to get a good interest rate on a loan in the near future. So, it’s essential to get the late payments removed immediately.
Here are the basics of how to remove a late payment from your credit report.
- Get your credit report: If you couldn’t figure out that whether you have made any late payment or not, then get a copy of your credit report immediately. Sometimes, a creditor doesn’t report about your late payment to the credit bureaus. So, before getting into the trouble of removing the same, you need to know whether the late payment made is showing up on any credit reports or not.
- Contact your creditor: If you become sure that your credit report holds a late payment status, the first and foremost thing you need to do is contact your creditor. Because he is the only responsible person for reporting about the same to the credit bureau and has the competence to erase it from your credit report.
- Ask them to remove it: Contact your creditor and immediately let them know the reason for contacting them. Request them straight away whether they can erase the late payment from your credit report. Furthermore, if you are still a client of theirs, they may be willing to evacuate this late payment as a demonstration of great will. At last, the creditor will need to hold you as a client and will expel the late payment from your credit report.
- Negotiation: At times, you may have the capability to negotiate with them on this matter. For example, if you have not made your payment, inquire them if they will delete the late payment from your credit report in return for your payment. Sometimes, they will help you in order to get your money.
- Dispute with credit bureaus: If the late payment is illegal, you ought to discuss about it with the credit departments. Mail a duplicate of your credit report to the acknowledge authorities highlighting the late credit payment. Send a letter requesting them to evacuate the late payment and giving proof that the payment actually was not made late.
Summary: How to Remove a Late Payment from your Credit Report
Late payments are not only bad for your credit scores, but also assumed to be one of the worst things you could do to your scores. So, timely bill payment each month is one of the essential ways to manage your credit score, suggesting that you are a responsible and reliable borrower.
What is a FICO Score?
May 15, 2016
What is a FICO Score?
People who would like to get into any type of financial transaction need to know what is a FICO Score? It is one of the best and most popular ways in the USA for assessing someone’s credit or money viability. A type of credit score which help prepare an appropriate credit report that lenders generally use to assess the applicant’s credit risk and make a decision whether to give a loan.
It was invented by Fair Isaac. FICO represents the Fair Isaac Corporation, and the word, “score”, represents the assessment. It computes the scores to assess a person’s monetary status, transactions and the financial move. Actually, it’s your credit score that makes you eligible or not-eligible for a credit loan. The score determines your repaying ability to a loan. It is based on five factors, that are your paying ability, the amount you have to repay, the credits you had, the new credit you have, and the types of credits you are using. If you score high, you could get your loan approved at lower interest rate.
Past and current credit affairs like your accounts open date, types of accounts, last use and default computed as well. The score comes in a three digit number that ranging between 300 and 850 and it decides your chances. Obtaining a high score that is above 600 reflects your ability in controlling your finances in a great manner and your creditworthiness. Your probability of being granted a credit loan by the banks and creditors increases to a great extent.
On the other hand, if you score less than 600 it shows that you are not in control of your finances. The banks or creditors might also say no to pass your loan or approve it at a much higher interest rate or just give you pretty less amount.
FICO does not see the amount you make, where do you work, how long you have been working or worked, your age, sex, color, race, religion, or the kind of job you are doing. What it sees is your percentage scored. Listed below are the percentages for each part:
- For payment history, it is marked 35 percent.
- For amount owed, it is marked 30 percent.
- For the length of credit history, it is marked 15 percent.
- For new credit, it is marked 10 percent.
- For types of credit, it is marked 10 percent.Your FICO score is not the end of possibilities to obtain a decent interest rate. You could increase your scores by improving some of the important factors like reducing the amount of your outstanding debts, your payment history for a start. A number of things are there that could assist you in achieving the final score. You just need to go through in detail and find out the areas that need a boost to re-build your current credit scenario.
What is a credit bureau? Experian, TransUnion, Equifax
February 10, 2016
What is a credit bureau? There are 3: Experian, TransUnion, & Equifax
When you opt to buy something on credit or take a loan, the lenders don’t just decide to give you the facility right away. They try to collect information on your credit behavior, both past and present, track record, and various other data to ensure that you have the potential to fulfill the liabilities you obligate yourself with. This is where the Credit Bureau comes into the picture.
Ok, so what is a credit Bureau?
A credit bureau is a company that collects and maintains credit information of individuals and supplies it to the interested organizations and bodies such as lenders, creditors, etc. As a consumer, you can also have your own credit report from the bureau. The credit information is basically a summary of your credit behavior and includes the following details:
- How much of credit you have
- How much of the credit is left
- How much credit are you using
- How often do you make your payments
Credit information also contains rental repayment reports if you own a property. Other details mentionable in a credit report are liens, judgments, and other details that expresses your current financial position.
There are 3 major national credit bureaus in the United States:
- Experian – This global information service group operates in almost 40 countries and employs a total of 17k people. The agency was founded in 1996, the headquarter of which is in Dublin, Republic of Ireland.
- Equifax – Another consumer credit reporting agency and one among the three largest credit bureaus, Equifax records and maintains information of over 400 million credit holders in the world. Based in Atlanta, Georgia, the company employees 7000 plus employees and operates in 14 countries. Equifiax is also one of the oldest credit report gathering agency that has its operations ongoing since 1899.
- TransUnion – The third largest credit bureau in the United States, TransUnion is an American credit information management agency. The company has information of approximately 500 million customers worldwide and over 45,000 business houses. It works closely with Callcredit, a UK based credit reference agency.
Based on the information on your credit report provided by any of the three aforementioned credit bureaus, the lender assesses whether they can offer you the credit or not. Whether your credit scores pose a risk and put you in a bad standing or has a high score that easily help you in obtaining the loan. This will also help them in deciding what interest rates they can offer you.
Summary: What is a credit bureau?
There are agencies that can help you in getting out of a bad credit report. They will help in reestablishing your reputation as a credit holder and will solve all your credit issues. Search on the Internet to find such providers and take their help to get back on your feet.
Credit Repair Services – How Do They Work?
January 24, 2016
Credit Repair Services – How Do They Work?
Do you look at your credit report and think about nothing but credit repair services? Have you had one or more financial misfortunes over the past several years and now have a less than ideal credit score? If yes, then it’s high time to get your credit repair process started. Credit scores have been one of the biggest victims of the financial crisis and the recession. Anyone with poor credit scores will definitely know what a low credit score can cost you.
Credit repair services can improve your credit enough to lower the rate of interest, which can result in saving you thousands of dollars on a loan. When making an essential purchase, such as buying a car, it’s vital to make sure your credit rating is as its best in order to get the best rate and terms possible. Bad credit can land you up in problems and have a considerable negative impact on interest rates or loan approval.
How credit repair services work?
The credit card repair services have been around for a couple decades with better known rules surrounding credit repair and know how to handle those rules to either raise your credit score or give you your money back. The legitimate credit repair agencies will state what quickly repairable issues to look for, how to approach your credit issues and then will submit the appropriate challenge, dispute, or intervention letters to credit bureaus on your behalf, so that your credit rating can get upgraded. They will identify the mistakes, correct the appropriate information, get rid of negative reporting and monitor the creditors to ensure that your credit report is as accurate as possible and corrected accordingly.
Necessity of credit repair services:
- Better car insurance policies: The policies that most car insurance company offer are usually based on the clients’ credit reports. For example, you will end up with a reasonably priced car insurance policy if your report suggests that you are late with paying other accounts. Thus, credit repair services can clean up your credit rating and help you get considerable savings over the duration of your policy.
- Better car loan or mortgage facilities: A low credit score can put a negative impact on getting different car loans. You may not get the desired loan amount or land up paying greater interest on your loans for the lifetime. A bad credit score can lower your credit limit, thus making the loan even more pricey for you. But a report with good credit score will increase your chances to get your own desired vehicle.
A higher credit score can help you with: lower interest rates on your credit card, get approved for low interest loans and lower insurance rates on your car. So, it’s important to keep your credit score in good condition. The higher your credit score is, the lower your interest rates are. There are a handful of benefits that come along with a credit score repair. So, open that door, hold out your hand and grab hold of those opportunities with a credit repair.