The Right Way To Credit Repair
If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished. Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that. It's not as difficult as you might think to get by with a bad credit rating; with a little work and time you can even repair it! Of course, before you do that it's important to realize exactly what a credit rating is. Every time a lender or other creditor makes a report concerning your payment history to them, this report affects your credit score. Your credit score is a numerical indication of the positive and negative reports that you've received from creditors and lenders; if the number is high then you have a good credit rating, and if it's low then you have a bad credit rating.
Basic credit repair Get organized! Make a folder for all your correspondence offline and online. You will have to do some snail mailing but in most cases you can work your repair online. In the U.S. a 630 rating will qualify you for a mortgage. You can still get credit with a lower score but not at a premium interest rate.
In fact, even a chapter 11 bankruptcy (erases all negative credit) is not as bad as many think. I am not advocating filing for bankruptcy (the laws have changed so you might have to set up a re-payment schedule if your income allows) but for those caught between a rock and hard place, unemployment, medical crisis, divorce...many good reasons for finding yourself unable to pay your bills, filing for bankruptcy is a god-send. Many times, you will find creditors very eager to extend credit because you don't have any debts! It is the irony of the debt-income picture... if you have a steady income, you will have no problem getting credit cards, auto loans and even a mortgage. So, don't despair, your situation is not as bad as you think! You will find a way to less worry, more sleep and better relationships.
To begin correcting your credit, the important thing to do is obtain your credit report and study it. Mark all the negative items. Most unsecured credit, mostly credit cards, can stay on your report for 7 years. If you find any over that, write to the credit bureau and ask them to remove it. They are required by law to research and report back within 30 days.
If they don't, you can threaten them with a letter to the Better Business Bureau or Federal Trade Commission. Find any other negative items and determine if they are correct. If not, write the bureau and tell them its not your debt. Even if you aren't sure, ask the credit bureau*s to investigate. Many times, they will not be able to verify the debt because the credit card company, auto loan company or other creditor won't get back them within 30 days (required by Fair Credit Act).
For the contact information on credit bureaus as well as samples of letters to send to them, go to: http://www.repair-credit-right.com You may freely reprint this article provided the following author's biography (including the live URL link) remains intact..
Dan Farrell is the owner of Repair Your Credit...The Right Way and this article on credit repair and others on credit such as:Credit Bureaus and AddressesCredit Bureau Letters Credit Errors And How You Can Correct ThemCredit Card FraudLeasingCredit And Women's RightsThese articles and many others can be found by going to: http://www.repair-credit-right.com.info@repair-credit-right.comConsumer Advocacy Group Joins Forces with Law Firm
North Huntington, PA
May 23, 2005 -- The United Consumers Advocacy Network (UCAN) announced today an alliance with Apex Law Group and its national network of attorneys to offer legal support to clients of debt relief companies that subscribe to UCAN's services.The alliance will offer a broader range of services ranging from basic advocacy to legal representation in court if a client is sued by a creditor or if a creditor violates a client's consumer rights. Apex will also offer bankruptcy solutions to clients whose financial situation worsens and are unable to continue their debt relief program.UCAN executive Dave Leuthold says that there is a growing need to protect consumers enrolled in debt relief programs against abusive collection practices and creditor lawsuits. "As a third-party advocacy firm, creditors are usually willing to work with us once we get involved in a case," explains Leuthold. "However, cases do arise that necessitate legal intervention and this new alliance...
Bankruptcy > Consumer Advocacy Group Joins Forces with Law Firm
There Are Two Types Of Personal Bankruptcy, What Are They?
There are two different types of personal bankruptcy that an individual can file, Chapter 7 & Chapter 13.
Chapter 7 allows you to disburse of most or all of your debts at the time of the court ruling. This method, however, has more of a negative impact on your credit rating and will stay with you longer?up to ten years. People who file Chapter 7 personal bankruptcy are considered to be a much more credit risk then those who file Chapter 13 personal bankruptcy.
In a Chapter 13 personal bankruptcy filing you pay off your debts in what is known as reorganization.
Through the courts, a court-appointed trustee will determine your new standard of living and how much of your income will be given to you to live on and will divide the rest among your creditors each month. For the next three to five years, you will have to live on a strict budget while your debts are getting paid. At the end of the reorganization your debts are considered paid in full, however, the record...
There Are Two Types Of Personal Bankruptcy, What Are They?
Bankruptcy > There Are Two Types Of Personal Bankruptcy, What Are They?
Types of Bankruptcy Filings
Jumbo mortgage This is considered a nonconforming loan because it exceeds the loan limit set by Fannie Mae and Freddie Mac. The 2003 single-family loan limit is $322,700. The maximum loan amount is 50 percent higher in Alaska, Hawaii and the U.S. Virgin Islands. Balloon mortgage With these, borrowers get lower rates and payments for a specific period of time, which usually is anywhere from three years to 10 years.
At that point, a borrower has to pay off the principal balance in a lump sum. Assumable mortgage Assumable mortgages are relatively rare. A homeowner with an assumable loan can "hand off" the loan to a buyer instead of paying it off using proceeds from the home sale. If rates are low and you can get one, by all means do so. If rates rise, buyers will want to assume your loan (and will be willing to pay more for your house!) because it'll be much cheaper than any loan they could get from a bank or other source.
Subprime mortgages These loans have higher rates and...
Types of Bankruptcy Filings
Bankruptcy > Types of Bankruptcy Filings
Bankruptcy Home Loans
Are you a homebuyer with a recent history of bankruptcy in your credit report? You may be wondering whether it's possible to get a home loan with your kind of credit history. Or you may be wondering how long it will take you to get a home loan after declaring bankruptcy.
There are many mortgage companies and banks which offer home loans even if you have a bad credit report or a bankruptcy. A home being an asset in itself, lenders feel secure about giving you a home loan. They feel they profit by approving a home loan for you, and often do it soon after you have cleared off your debts.
Some companies approve your loan two years after you have filed your bankruptcy, but depending on the type of bankruptcy you have filed and the time you take to clear your credit, you can get a home loan in a period of one to two years.
Mortgage companies have special packages for bankrupt people to get loans for buying houses. After shopping around online and with traditional...
Bankruptcy > Bankruptcy Home Loans
Bankruptcy
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