Bad Credit--Millions Have It--Find Out How You Can Repair It
Posted: Thursday, July 02, 2009
by Steve Kovacs
The Kovacs Perspective
Some of the most common ways people get bad credit is from having late or unpaid credit card balances, home foreclosures and bankruptcy filings. In today's financial climate, it is more important than ever to have good credit. Did you know a bad credit score could even cost you a job, or prevent you from getting insurance coverage? In addition, it is easier to get a car or home loan with good credit. It is also easier to get those favorable lower loan rates if you have a good credit rating.
- Negotiate with your creditors. Call your creditors, explain your situation and tell them you are trying to clean up your credit and offer them a 30-percent settlement payment. Debbie Chapman, a senior loan officer for FD Bankers in Hunt Valley , Md. says, "Try this first because most of them will take payments of 30 percent to 40 percent".
- Pull your credit reports and look for errors, all three of them (in the US ) Transunion, Experian and Equifax. These three nationwide consumer-reporting companies have set up a toll-free telephone number, through which you can order your free annual reports: 1-877-322-8228. There is a relatively high amount of errors on credit reports. Look for errors and dispute them to each agency listed above.
- If you have a credit card that is close to the limit, transfer some of the balance to another card to even up the available credit.
- Do not close old paid off accounts. These can actually help your credit score.
- From this day forward, pay your bills on time and do not overextend.
- Utilize FREE credit counseling from the Consumer Credit Counseling Service (CCCS).
- Bankruptcies and foreclosures can remain on a credit report for seven to 10 years. Therefore, reestablish good credit as soon as possible. The circumstances surrounding the bankruptcy can also influence a future lender's decision to give you credit for a new home etc. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic.
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Top-level comments on this article: (6 total)Steve:An informative article, thanks for sharing some sound tips. I ran across troubles a couple of times because of two unique situations. The first incident was because a sibbling of mine had a social security number very close in numbers and the second time because of someone with the exact same name as mine (someone never bothered to look at the social security numbers evidently). It took some time to clear things up, lots of letter writing and phone calls, but eventually it did get corrected. Unfortunately, I didn't realize it until I went to make a purchase on something.
Steve:An interesting article with some sound tips. Interestingly, I ran across troubles a couple of times in my past. The first time was because a relative of mine had a social security number very similiar to mine and the second time was because a person shared the exact name as mine (evidently, someone never bothered to look at the social security numbers). Fortunately I was able to get my credit corrected, but not without a lot of letter writing and phone calls. It might have been able to be fixed sooner, but I had not realized it until (on both accounts) I went to make a purchase on something.I heard credit reports often have mistakes and you’re an example of that. One would think they’d have better control or oversight. Glad you were able to fix it! Thanks for reading and your comments.
Unless I hit the lottery or get discovered as a singer I will have to wait for my next life to save my credit.If you win the lottery send a little towards me and if you make it big as a singer send some tickets! Thanks for reading.
Steve, this article is very helpful at this time in our nation (all over the world). Your points are well taken and I will share with others in counseling. Thanks.Hi Clarence, thanks for you your comments, I'm happy you think it's helpful and more than happy you will share it with others during counseling. Thank you.
Steve, I sincerely appreciate your advices for people. However, by fact, opinion and experience these people are in my opinion unscrupulous and lack character. They are quick to label you the dead beat, irresponsible but reality say's be very careful about what they promise and actually deliver. You see they rarely if ever put anything in writing and when they do it leaves much open. Even the state I live in, the Darkness state, says to be very careful. I've been the workout route with many of the big boys who bought up the others and found this out the hard way. By fact, they have nothing to lose. 1- They get bailout money. 2- all their unsecured, non collateral debt is secured, by insurance 2- they get tax write offs and 4th if they force you into bankruptcy they get a portion back as well of that unsecured money. Yes much if not all a total facade. Foreclosure well another sad joke and sin. Maybe worth a try for some but sorry, reality says it is a long shot at best. Best wishes.
Steve, many didn't know this and should. I took a series of classes and became certified because I wanted to help others who were having credit problems. The process is tedious and lengthy but worth it. Very good information to have available to others. Thank you!Hi Avis, nice to hear from you. Thank you for the comments and I guess the topic is appropriate right now with our economic times...
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