Tim Gorman asked:




Because bankruptcies remain no more than 10 years, credit reporting agencies use the date of original delinquency or, in the case of public records, the date of filing to determine when negative information is deleted. This adheres to the fair credit reporting concerning unrelated bankruptcy. The trend from this group of cases is that the courts have not been receptive to overly creative arguments and have tried to remain faithful to the spirit of the means testing. The courts have managed to do this while pointing out specific instances in which the law is an ass. Proceeds from the sale will be used to settle remaining costs from the Chapter 11 case and fund the conversion, the Company said.

Banks and lenders use the middle score as the average because the credit bureaus report differently from time to time and a median score often serves as the best representation of your overall credit strength. Bankruptcy filing, liens, and collection activity also impact your history. Banks, credit card companies, and other lenders use your FICO score to determine whether they will lend you money and at what interest rate they are willing to lend it. In general, the higher (better) your FICO score, the lower the interest rate you will have to pay when you borrow money.

Bankruptcy is the wrong solution to a problem of the government’s own making. Bankruptcy is never a first option when it comes to dealing with your financial situation, but it is also not a final mark in your financial record. Even after you have filed for bankruptcy, it is certainly possible to redeem your credit score and even successfully get a new credit card.

This is because employee benefits are protected assets and cannot be touched for bankruptcy proceedings. But new legislation is making some retirement assets possible bankruptcy assets. However, bankruptcy is really only a suitable option for people with no or very few assets, as, apart from a few essentials, all your possessions, including property, can be sold to pay your creditors. If you own your own home, or part of it, that can be sold, too, to realize your share of the equity to meet your debts. The record will stay on your full report (which can be pulled in certain instances) pretty much forever.

Your high balances are removed as are any late payments or records of unpaid debts. Thus conforming to the fair credit reporting concerning unrelated bankruptcy. Instead, the accounts included in the bankruptcy will be marked as “Included in Chapter 7 Bankruptcy” or “Included in Chapter 13 Wage Earner Plan,” depending on which type of bankruptcy you filed. Document everything; keep good records. Remember, we are not victims.

These credit bureaus control vast databases that collect information about people which is furnished to them by creditors and from public records. The information is then provided in the form of a “credit report” to potential lenders and others for approved purposes authorized under the Fair Credit Reporting Act. I believe that if you declare bankruptcy, you won’t be able to buy a house until that is off your record (7 years). Since you’re already making inroads in your debt, I encourage you to stay the course. If you’ve got a bad record abroad expect it to follow you to Canada.

The purpose is to create a steady work record as soon as possible. Also, you have to obtain credit records from the three credit bureaus. Bankruptcies involve documents that are public record, and will always be available to anyone who looks for them. It should not, however, result in a bankruptcy notation in the non-filer’s credit record.

The courts will only verify such records in person. The credit bureaus will claim that they have a system to verify such records, but when it comes down to it, they don’t. Ensure that any creditors not listed in your bankruptcy and which you are paying regularly, have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. Be aware that these agencies do not investigate public records and if it is up to the courts they only verify in person. It is important for you to know what your rights are and be able to act on them so that you will be on the winning side of this issue. It helps to understand the fair credit reporting concerning unrelated bankruptcy.

If you were able to remove even a couple of charge-off accounts from your record, it would boost your credit score. This option is only recommended to those who have a track record of making timely payments on all of their currently outstanding debts. If you happen to be a consumer in fair standing with a pretty solid track record for making your payments, your score could very easily jump by as much as 25 points under the new formula.

And lastly, in the public records section of your credit report, you need to verify that the statement of “discharged on date” is annotated in the “amount due” column. All other public record information typically falls off after seven years. When you have fresh credit, there is no track record how you will manage (or pay) this account. Therefore, it’s a higher risk which results in a minor drop in your credit score.

Jane

Steve Faber asked:




Catalogs with instant credit can help boost your credit. To know how they can give your FICO credit score a boost, you need to know how its calculated. Your credit score is a measure of the risk you present to creditors, based upon your credit history.

A major component of your score is the ratio of your total outstanding revolving credit to your available revolving credit. It’s known in the financial industry as the credit utilization score, and the lower your score the better. You have two ways to lower the credit utilization score. As with any fraction or percentage, you can make the top number (your outstanding revolving credit) smaller, or the lower number (your available revolving credit) larger.

If rapidly paying down your outstanding debt just isn’t an option for you, as it isn’t for so many people, you are left with only one option to lower your credit utilization score, and thus your FICO credit score. That is to raise your total available revolving credit. The nice thing is that as soon as the additional credit accounts are reported to you the credit reporting agencies, your credit score will get a boost. This could happen in less than a month.

In many cases, especially in the current skittish credit environment, you’ll not be able to get new credit cards, or the limit will be very low. That exhausts one of your best options for adding to your total revolving credit limit. Thankfully, there are other options for you to pursue. Once of these is to find catalogs that offer instant credit.

In the vast majority of cases, especially these days, the credit will have to be used to purchase only catalog merchandise. That’s perfectly okay, as you’ll not be using it, unless you have to make a purchase as a condition for opening the account. Before you open the catalog account, it’s essential you confirm that the company reports your account to the credit bureaus. If they don’t you’ll get no credit score increase from opening the new account.

That is how catalogs with instant credit can help give your credit score a quick boost. You’ll need tricks like this up your sleeve, because excellent will be a virtual requirement in the years ahead as businesses and lenders tighten their lending requirements.

Lillie

Jack Harmon asked:




We all know about our free fico credit score, and yet many people around the world use it to take advantage of the credit they receive from banks and other financial institutions. We all like the fact that it is so easy to get free credit the first time around, grant you have been working permanently at a company for more than three months.

But then we go off on our little shopping sprees and buying basically enough merchandise to open up a store of our own, thus putting us in debt. This said it will be safe to say they we do not think of the consequences of maxing out our credit cards.

Many financial advisors say that you should be really careful when it comes to credit and credit cards, because we do not take into account that one day we will want to buy a home or buy a car, and if you have bad credit rating you will be turned down flat out.

A bad credit rating makes life really hard and a bad credit rating makes it really impossible for anyone to get credit from any company, including the tiny little clothing store on the street corner.

Free Fico Credit Score Explained

So if you are wondering how your credit score is determined you will have to do a bit more research, but basically it is a system called the Fico (Fair Isaac company) credit score system.

This system is used mainly buy banks and other financial institutions like credit card companies to determine your worthiness when it come to paying back the money they give you. The Fico system is also the biggest and most used system in the United States of America.

Many financial advisors and accountants’ plea to consumers to keep track of their free fico credit score at all times, as it is what will determine your future financial status.

The best way to do so is to get a free fico credit score. The free fico credit score can be got almost anywhere on the internet and it incorporates reports from all three of the credit bureaus, so you can stay on top of your entire score at all time.

Not many places offer free fico credit scores, but if you do find the better websites you will find a few places online offering free fico credit scores.

So do not delay, it might mean the end of your financial future, stay on top of your credit reports and get the free fico credit score.

Helen

William Sears asked:




This is another huge advantage of the internet age that you will love. Anyone can fill out an application on line that is safe and secure and know in less than 60 seconds if they have a credit card.

Many of the large banks and financial institutions have taken advantage of the internet connection with consumers to make decisions immediately. If you have good to excellent credit this is not a problem. If you have less than perfect credit you can still get a card but there are not as many options.

There are three national credit bureaus that are checked- Experian, Transunion and Equifax. With your identity checked, your FICO score is checked to satisfy the issuing cards criteria. This is such an advantage over snail mail!

Instant approval credit cards have the advantage of special offers. Banks will sometimes offer 0% on introduction rates, bonus travel miles and cash back bonuses. Special offers are a good bonus that should not be over looked by consumers. The key to taking advantage of them is to take the credit card at face value. Do not just get a card for the bonus.

Instant approval credit cards are safer and more secure than paper applications through the mail. My friend, who is an internet whiz, told me secure internet sites use 128-bit encryption which is considered unbreakable in the security field.

Instant approval credit cards are a great option for consumers of any credit category. It makes good sense to apply on line with the safety and security banks have in place.

Ricky

Ed Vegliante asked:




Do you want more credit at your fingertips? Applying for a credit card is now faster and easier than ever. With instant approval credit cards, you can find out whether you have been approved online in less than a minute. Here’s what you need to know about instant approval credit cards.

The Instant Approval Process

The process to get an instant approval credit card begins with an online application. You’ll need to fill in basic financial information. For instant approval cards, when you submit the application, your credit report is quickly reviewed. Usually, the approval is based on your FICO score. FICO, which stands for Fair Isaac & Company, gives you a credit score between 300 and 850. If you have good or excellent credit, it is very likely that you will be approved.

You will receive a confirmation notice of your approval. The actual credit card will then be sent to you in the mail. You can plan on its arrival one to two weeks after the card has been approved. Once you have followed the steps to activate the card, you are free to begin using it.

Compare the Benefits

While the resounding feature of instant approval credit cards is their quick online response, many include other benefits. Some offer a 0% introductory rate on purchases and balance transfers. Others come with a plan to receive cash back or rewards. If you frequently travel, look for a card that will award you with free air miles. If you have a long daily commute, check into a card with gas rebates. By evaluating your lifestyle, you can find an instant approval credit card that will have lasting benefits.

Understand the Fine Print

In addition to the card’s features, it is important to understand the details of your credit card. If the card comes with a low introductory interest rate, find out what the regular APR is. This will tell you what you can expect to pay on interest after the introductory period is over. Also look to see if the card has an annual fee or additional finance charges. Sometimes there are fees involved with balance transfers, late payments, or reward programs. Be sure to read through the fine print. This way, you will know what to expect after the credit card has been instantly approved online.

Check for Security

In many ways, applying online can be more secure than sending in a credit card application through the mail. Your information is sent directly to the needed source, and you do not have other people’s hands handling your mail. Most credit card companies use the latest, most secure data encryption available. To be safe, check the website before you apply online. Look for indications of security, such as a small lock on the page. If you have any questions, check further into the site before applying.

Life often feels like driving in the fast lane – we need things done quickly. Instant approval credit cards offer you the convenience you need through a process that is easy to follow. And with the Internet, you have plenty of options right before you. You can look at a variety of cards as you search for the one that best fits your needs. Apply today and enjoy the excitement of being instantly approved.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com.

Maria

Helen Hecker asked:


Everyone wants a good credit score. So much of what we do financially is dependent on this FICO score on our credit report. Of course it’s important to try to make payments on time, etc. but this isn’t always easy to do. Emergencies come up. You can be the best person in the world and responsible too and you try to do things right. But there are secrets in the credit reporting field.

But you may just find yourself short on cash and try as you may just have to miss a payment or make a late payment or you’re charged for something you did not buy or returned or something else. Many times this is through no fault of your own.

If you don’t have a current free annual credit report you can get a free credit report instantly online. After you have your credit report in hand, look through the report and find all the negative marks or bad items. Make a list. Hopefully it’s short. Maybe you only have one or two. If you have several then list them with the highest amount down to the lowest.

This is an easy lesson in how to repair your credit. We’re going to tackle the lowest amounts first. And here’s the secret that many people do not know. If you write a letter to the three credit report companies or bureaus and dispute any of the amounts, the credit bureaus contact the creditors. If the amounts are small the creditor may not even bother to answer the credit bureaus.

The credit bureau has to remove the item if the creditor hasn’t responded within a certain length of time.

Don’t think that writing the letter is hard to do. Sit down early in the morning when you are fresh or at a time when you have more energy. Just simply address three envelopes to the three credit bureaus. They are Experian, TransUnion and Equifax.

You can easily get their address from the free credit report or online. Just explain that you found some errors on your credit report that you want to dispute. Make it short.

Enclose any relevant documentation, if you have any, which shows there is an error or that you want to dispute. This would include any cancelled checks, online payment confirmations, etc. Ask for a correction. Then say something like you want to keep a good standing and value an accurate and good credit history.

Also say something like a good credit rating and credit score is important to me. Make sure to name the creditor and the date of the error. Keep a nice tone to the letter.

Then close with a ‘thank you’ paragraph. Something like “Thank you for attending to my letter and this matter so I can maintain a good credit history. If possible let me know that my file has been reviewed and send me a copy of the corrected credit report.”

If you review your free credit report often you can catch small errors and fix your credit report before too much time passes. This is a little known secret and if the creditor amount is small enough you should be able to easily get it removed. It’s worth the small effort to raise your credit score. You CAN fix it yourself knowing this secret! There are many other credit report secrets!



Jackie

Tim Gorman asked:




Lenders want to see a track record of debts owed and duly repaid. If you do not have a traditional credit record that shows payments made on credit card purchases, a car loan, or a student loan, it is still possible to establish a credit history. Many lenders have been griping that the supposedly all-important FICO credit score has failed to accurately predict the possibility of default on loans of various types. As a result there are new initiatives in the works to come up with better ways to figure out who’s going to pay and who’s going to skip out. Check your credit history from the reputable reporting agencies to see if you have erroneous bad credit information contained on your report with their organization or company. If so, you must submit correction letters for credit reports to clear that up thus raising your financial score. Many lenders brazenly advertised “low-doc” and “no-doc” loans that required borrowers to provide little or no documentation of their ability to repay. They even pushed “ninja” loans, requiring no income, job or assets.

Banks, leasing companies, lawyers, doctors and others might report an account if it becomes delinquent or is in default. Criminal convictions and credit applications of more than $150,000 are reported indefinitely. Bankruptcy information can be reported for 10 years. You have the right to obtain a copy of your credit report from a credit bureau.

State exactly what the problem is; state the facts as you know them, provide copies (not originals) of supporting documentation, and request a deletion or correction of erroneous data. Send your complaint letter by certified mail, return receipt requested, so that you can prove what the CRA received. State governments have only recently decided motor vehicle and tax data should be protected in some way.

Calling the credit grantors can be a drag, but when you call one of the bureaus listed below, that bureau will share the information with the other two. All three credit reports will be sent to you free of charge. Call toll-free 1-877-IDTHEFT (438-4338).

Call any one of the three credit reporting agencies when you want to (1) request that a fraud alert be placed on your account; or (2) order a free credit report from the agency. We recommend that you request a free credit report from each agency with a four-month interval between requests to each agency (i.e., a request to one agency, wait four months, then submit a request to the next agency, etc.).

Credit reporting data is maintained by the credit bureaus on more than 170 million Americans. Credit scores are calculated directly based on current credit data, then subsequently pulled by lenders. Credit report information is returned instantly in an easy-to-read format. Credit Reports are among key credit factors that are checked by credit report companies. I would suggest that you check your credit before you apply for any type of loan which will check your credit score and credit report information. You will submit correction letters for credit reports. Credit lenders will make their decision about your service by checking your credit report .

If you are looking for your credit reports, want advice on maintaining strong credit or want tips on debt management, we have the information you need. Learn how to get your credit reports, understand your credit score, manage credit card debt or build your credit. These reports are compiled by agencies that gather information about your credit relationships and are known as credit bureaus. Currently there are three major credit bureaus. Your financial reports are often reviewed by individuals to verify that information is accurate, to confirm reasons for rejection of credit or insurance, or to identify fraudulent activities. File correction letters for credit reports to correct false information. most reports are generally obtained by businesses and employers in order to measure a consumer’s ability to pay off expenses and debts.

Almost all reports contain a certain amount of personal information. This is called identifying information and, among other things, allows the credit-reporting agency to distinguish between one Robert Smith from California and another Robert Smith from California. Credit report affiliate programs let you profit by providing this valuable credit service to your website visitors with easy lead generation forms and pay per sale agreements. If you’re a financial services affiliate, offering credit reporting in addition to other credit tips and spending advice can be a powerful way to earn regular affiliate commissions.

Margaret

Lyn Collier asked:




You don’t have to sign up for a trial membership of a credit protection service to get free copies of your credit reports. There a few one-stop websites where you can order credit reports from all three credit bureaus: Experian, Equifax, and Trans Union. It’s easy. One site, Annual Credit Report, is even recommended by Consumer advocate Clark Howard as well as the Consumer Credit Counseling Service.

By the way, your “credit report” is not the same thing as your “credit score.” The reports will give your credit activity only – not your FICO score. The FICO score is a number that is generated using info from all three agencies. It is a product of Fair Isaac Credit Org. (FICO) and must be purchased – $15.95

When you get to the site and start clicking around to request your free report, a few things might concern you. The main thing…and it is kind of unavoidable is the request for you to enter your Social Security number. If you have strong reservations about entering your SS number online, you can just skip the rest of the article and look up the 800 number and do the transaction on the phone. But either way, you will to have to provide your social security number.

Back to the online request. At some point during your online request for a free credit report , each bureau will try to sell you their products. Stay focused.

Here is the protocol for Experian for example: (and they are all pretty much alike so I will spare you the details on the other 2)

Step 1 on the Experian site will offer to sell you your Experian credit score for $5.95. Each bureau assigns a score, but their scores do not represent your FICO score.The FICO score is the one that most creditors use. I don’t recommend buying a credit score from anyone other than FICO. it’s the only one that counts. When asked if you want to purchase your “Experian” score, scroll to the bottom of the page and click on “No thanks, I just want my free annual credit report.”

You will cruise through the steps pretty quickly. The only time you might have a problem is if you don’t answer the identification verification questions correctly. If you answer incorrectly you will be given a toll-free number to call where your i.d. can be verified manually.

Once you are done on the Experian site, you will be prompted to return to the Annual Credit Report site and continue with the other credit bureaus.

All the sites will walk you through the same process offering to sell you their products along the way. Remember, your goal is to get free credit reports, not buy stuff. Follow the prompts and you will instantly get your three credit reports free of charge.

Lee