Once a charge off was declared by your creditor, they would consider it as bad debt and would be allowed to include it in the Profit and Loss section of the debtor's financial statement. This would allow your creditor to treat your bad debt as a business expense and the Internal Revenue Service would not demand any taxes on these items.
Although it is considered to be a bad debt, it does not mean that it would not be uncollected. Your creditor would still be doing necessary steps in order to collect their money including filing a lawsuit if hiring an outside collection agency does not work.
According to the Fair Credit Report Act, these charge offs could remain for as long as seven years unless your creditor asked the credit bureau to remove it. Of course, you will have to negotiate payment of your debt, whether in partial or full. Factors that your creditor will consider before agreeing to any negotiation include debt amount, offered settlement, and other policies that the creditor requires.
If you are attempting to settle your charge off, you should remember to document everything. Also important is to make arrangement with someone for the creditor's office who has the legal authority to enter into such agreement. You should make sure that the agreement is legal and binding before you pay anything. If not, you will never have the chance to remove the charge-off record on your credit report.
When negotiating payment terms, you should make sure that you are doing so realistically. Do not make promises that you will have difficulties keeping. You will only make matters worse if you try to commit to paying more than you can afford. To deal with your charge-off troubles, you must be able to realistically face your financial situation. Determine what the reasons for your indebtedness were and how you can manage them. In most cases, a change in spending habits and bills management is in order.
charge offs can actually be avoided if you are just diligent in paying your bills or speaking with your lender. On the other hand, if the charge-off is already there in your credit history, then dealing with it should be your top priority. Although it would take some time, it is only the responsible thing to do. You should definitely learn from this experience and make sure it does not happen again.
Thursday, October 14, 2010
Charge Offs - Dispute and Remove Off Your Credit Reports
Creditors charge off accounts all the time to avoid being responsible for the debt you owe them. They have every right to do it, but it would be nice if they tried to negotiate payments with you before charging off your account dinging your credit reports and lowering your credit scores. Because once they charge off it off, your account is closed with no chance of a good payment history showing up again. At least with a late payment you have some good payment history showing and the chance of having the creditor removing the late payment themselves, but not with a charge off.
This is the best way to remove a charge off from your credit report.
Credit Bureaus Disputing
This can be extremely easy depending on the creditor and situation or it can stay on their forever if done incorrectly. The Fair Credit Reporting Act was put into place for consumers to dispute anything on their credit report they believe to be inaccurate or erroneous. Consumers may dispute anything on their credit report by just asking for verification on the item.
Never dispute everything on your credit report at once (unless you just have 1 or 2 items needing disputing) or accidently verify the item yourself by claiming you had an account. Do it this way or your account could get marked as frivolous and make it impossible to send in another dispute for at least 60 days. Take your time, be honest, and write a good dispute letter. If the item comes back as verified, do it again, these things can take time.
Disputing and removing charge offs is not a new thing and has been around for several years, but the chance of removal has gone way up with rise in the following actions:
* Identity Theft - The fastest growing crime in the world.
* Credit Reporting Errors - The whole reason the Federal Trade Commission put the Fair Credit Reporting Act into affect.
* Unfair Creditor Practices - Obama has begun new legislation to stop credit card companies and other creditors from treating customers unfairly.
As you can see now more than ever we should be aware of our credit reports and what creditors are reporting to it. Dispute anything that is reporting negatively by asking for verification and your chance of charge of removal will improve drastically.
The credit bureaus have been forced to remove millions of negative items on people's credit reports. The leading credit repair firm in the nation removed 158,531 charge offs in 2009. I'm sure they could remove charge offs for you too.
This is the best way to remove a charge off from your credit report.
Credit Bureaus Disputing
This can be extremely easy depending on the creditor and situation or it can stay on their forever if done incorrectly. The Fair Credit Reporting Act was put into place for consumers to dispute anything on their credit report they believe to be inaccurate or erroneous. Consumers may dispute anything on their credit report by just asking for verification on the item.
Never dispute everything on your credit report at once (unless you just have 1 or 2 items needing disputing) or accidently verify the item yourself by claiming you had an account. Do it this way or your account could get marked as frivolous and make it impossible to send in another dispute for at least 60 days. Take your time, be honest, and write a good dispute letter. If the item comes back as verified, do it again, these things can take time.
Disputing and removing charge offs is not a new thing and has been around for several years, but the chance of removal has gone way up with rise in the following actions:
* Identity Theft - The fastest growing crime in the world.
* Credit Reporting Errors - The whole reason the Federal Trade Commission put the Fair Credit Reporting Act into affect.
* Unfair Creditor Practices - Obama has begun new legislation to stop credit card companies and other creditors from treating customers unfairly.
As you can see now more than ever we should be aware of our credit reports and what creditors are reporting to it. Dispute anything that is reporting negatively by asking for verification and your chance of charge of removal will improve drastically.
The credit bureaus have been forced to remove millions of negative items on people's credit reports. The leading credit repair firm in the nation removed 158,531 charge offs in 2009. I'm sure they could remove charge offs for you too.
Tuesday, October 12, 2010
How to fix your credit rating woes
A credit score that's anywhere above 650, is generally considered healthy. A credit score that's raised to 720 can save you a lot of money, through a reduction in interest rates. For those who've got a decent credit score, but would like to raise it, to save on interest rates, or obtain credit cards with ease, and also those who've got a not so good credit score, read further to know, how to improve credit scores.
Reports indicate that there are more than 30 million people who have severe credit blemishes. There are a few pointers that might indicate a falling credit score. For example if you have been denied a credit card, chances are that you have a bad credit score. Utility services always run a credit check to decide before extending their services for you. If they've decided not to continue their services, chances are you are running into a bad credit score. Debt collectors calling you is also a sign that your credit scores are going downhill. credit repair services Creditors transfer your account to a debt collection agency only if they are assured that you are unlikely to pay back their bills.
It's hard to believe but credit reports are also the basis of promotions in many companies, especially in financial companies. If you've been denied a promotion, even though you deserved it, chances are that your credit scores aren't too rosy. Your landlord is also most likely to check for credit scores. For those who have had to face one of these experiences, its time you meet up with a professional credit repair services agency. These credit repair service guys help you to sort out your finances and come up with solutions that could help you to not only come out of a bad credit score, but also manage to get you a good credit score.
There are a number of websites that offer credit repair services. Before you choose one, there are a few things that you need to know. The first and foremost thing is to know what your credit score is. You could also a get a free check of your possible credit rating through these websites. These credit rating service agencies offer different packages that you could choose from.
Besides these there are a few simple steps that you can take to improve your credit scores. For example remember to use the credit card sparingly and as little as possible. You could start by paying cards that are close to their limits. This would help you to keep the credit score in check. Also check for the credit limits. Often credit card companies, show a limit that's lower than your actual limit. You could always call these companies and get them altered.
A few, but significant steps can change the way, the world thinks about you. A good credit score not only helps you attain financial freedom, but also makes you feel good about yourself.
Reports indicate that there are more than 30 million people who have severe credit blemishes. There are a few pointers that might indicate a falling credit score. For example if you have been denied a credit card, chances are that you have a bad credit score. Utility services always run a credit check to decide before extending their services for you. If they've decided not to continue their services, chances are you are running into a bad credit score. Debt collectors calling you is also a sign that your credit scores are going downhill. credit repair services Creditors transfer your account to a debt collection agency only if they are assured that you are unlikely to pay back their bills.
It's hard to believe but credit reports are also the basis of promotions in many companies, especially in financial companies. If you've been denied a promotion, even though you deserved it, chances are that your credit scores aren't too rosy. Your landlord is also most likely to check for credit scores. For those who have had to face one of these experiences, its time you meet up with a professional credit repair services agency. These credit repair service guys help you to sort out your finances and come up with solutions that could help you to not only come out of a bad credit score, but also manage to get you a good credit score.
There are a number of websites that offer credit repair services. Before you choose one, there are a few things that you need to know. The first and foremost thing is to know what your credit score is. You could also a get a free check of your possible credit rating through these websites. These credit rating service agencies offer different packages that you could choose from.
Besides these there are a few simple steps that you can take to improve your credit scores. For example remember to use the credit card sparingly and as little as possible. You could start by paying cards that are close to their limits. This would help you to keep the credit score in check. Also check for the credit limits. Often credit card companies, show a limit that's lower than your actual limit. You could always call these companies and get them altered.
A few, but significant steps can change the way, the world thinks about you. A good credit score not only helps you attain financial freedom, but also makes you feel good about yourself.
What's a Good Card for My Credit Score?
One of the questions frequently by those seeking help with repairing their credit, whether by sifting through credit repair reviews for professional services or trying to go it alone is what the best type of credit card for their credit score is, or if there even is one. Will a secured credit card get them more points than an unsecured one? What about the differences between cards from banks vs. credit unions? And how do store cards factor in?
Well, the good news is that you can carry any type of credit card; none of them adversely affect your score. credit repair services The only two types that really matter are bank credit cards and retail cards.
What's in your wallet?
So now that we know which two types of cards matter the most, is there any difference of points between them as well? There is a slight difference according to FICO, the firm that came up with the most widely used credit scoring method. How you use your bank card can impact your score more than store cards - not having one in the first place can actually dock you a few points in the Types of Credit Used category.
Don't fret if you don't have any bank cards in your wallet - most are incredibly easy to get. Even if you find you only qualify for a secured credit card (the difference being you'll be required to put down a deposit to open the account), there's no worry as secured and unsecured cards are treated no differently.
Even if you don't feel like going out and getting a bank card (even though you really should, if you want the best credit profile you can get), you can still build up a good credit score with at least revolving retail card account. credit repair services You likely won't achieve the highest score possible (850 on the FICO scale), but you will able to at least taper off at a nice spot in the 700s.
So there you have it. When it comes to your credit score, bank cards are the absolute best cards you can have. Of course, your types of credit used only make up 10% of your overall credit history. In addition to what types of cards you should have, and how many (we recommend no less than 3 open cards), you should remember to keep focus on everything else that goes into your profile as well, from making payments on time to paying down all outstanding debts.
Well, the good news is that you can carry any type of credit card; none of them adversely affect your score. credit repair services The only two types that really matter are bank credit cards and retail cards.
What's in your wallet?
So now that we know which two types of cards matter the most, is there any difference of points between them as well? There is a slight difference according to FICO, the firm that came up with the most widely used credit scoring method. How you use your bank card can impact your score more than store cards - not having one in the first place can actually dock you a few points in the Types of Credit Used category.
Don't fret if you don't have any bank cards in your wallet - most are incredibly easy to get. Even if you find you only qualify for a secured credit card (the difference being you'll be required to put down a deposit to open the account), there's no worry as secured and unsecured cards are treated no differently.
Even if you don't feel like going out and getting a bank card (even though you really should, if you want the best credit profile you can get), you can still build up a good credit score with at least revolving retail card account. credit repair services You likely won't achieve the highest score possible (850 on the FICO scale), but you will able to at least taper off at a nice spot in the 700s.
So there you have it. When it comes to your credit score, bank cards are the absolute best cards you can have. Of course, your types of credit used only make up 10% of your overall credit history. In addition to what types of cards you should have, and how many (we recommend no less than 3 open cards), you should remember to keep focus on everything else that goes into your profile as well, from making payments on time to paying down all outstanding debts.
Tuesday, September 28, 2010
Are Credit Repair Advice Companies a Swindle?
If you have ever had bad credit you will know just how much it can affect you. It becomes a real pain trying to get any kind of credit, especially these days, and of course you start to worry if you will ever be able to get over the problem.
That's when you might start to take more notice of those ads you seem to see everywhere. You know the ones, the ones that promise to get bad information removed from your credit report. Some even offer to get bankruptcy notices taken off for you. credit repair advice
Now that would fix your problem wouldn't it?
If no one knows you have had credit problems, they can't hold it against you can they? And shoot, if these guys can get bankruptcies removed getting rid of a few late payments on your auto loan has got to be a cinch right? I'll just wait here until you come round enough to smell that coffee!
Let us take a look at the effect removing legitimate information from your credit file would do to the big 3 credit reporting agencies. Their records would become useless because no lender would know if they were accurate or not and their business would be worthless overnight. Do you think they might not do something to stop that happening? credit repair advice
The truth of the matter is that the only information that can be genuinely removed from your credit report is that which is incorrect.
Yes, you can find companies that can do that for you, but equally you can do it free of charge for yourself under the Fair Credit Reporting Act (FCRA). credit repair advice
All you need to do is find what is being said incorrectly in your credit report and file a dispute with both the credit bureau and the company who put the incorrect information on file. Under the FCRA, they are legally obliged to act on your dispute notice, and report back to you.
The first step you need to take is to get a copy of your credit report.
Source......
Link Building Service
That's when you might start to take more notice of those ads you seem to see everywhere. You know the ones, the ones that promise to get bad information removed from your credit report. Some even offer to get bankruptcy notices taken off for you. credit repair advice
Now that would fix your problem wouldn't it?
If no one knows you have had credit problems, they can't hold it against you can they? And shoot, if these guys can get bankruptcies removed getting rid of a few late payments on your auto loan has got to be a cinch right? I'll just wait here until you come round enough to smell that coffee!
Let us take a look at the effect removing legitimate information from your credit file would do to the big 3 credit reporting agencies. Their records would become useless because no lender would know if they were accurate or not and their business would be worthless overnight. Do you think they might not do something to stop that happening? credit repair advice
The truth of the matter is that the only information that can be genuinely removed from your credit report is that which is incorrect.
Yes, you can find companies that can do that for you, but equally you can do it free of charge for yourself under the Fair Credit Reporting Act (FCRA). credit repair advice
All you need to do is find what is being said incorrectly in your credit report and file a dispute with both the credit bureau and the company who put the incorrect information on file. Under the FCRA, they are legally obliged to act on your dispute notice, and report back to you.
The first step you need to take is to get a copy of your credit report.
Source......
Link Building Service
Credit Repair Advice - What Approaches Are Worth Your Time?
We live in a time when even people with so-called "good" credit scores are finding the amount of money available to be lent to them has decreased. People who don't have good credit could find there is no credit being offered them. Or the interest rates they'll be expected to pay are ridiculous - especially since the prime rate is at an historic low. credit repair advice
The best way to protect yourself from the worst of this is to protect (and fix) your credit rating. Here are some tips to help get you started.
1. Keep making your payments on time. Every time an account gets two payments or more behind, that's another black mark on your record.
2. Don't close off credit cards or credit accounts thinking that will help your credit score - chances are it will hurt it instead.
3. Opt Out. Each of the credit reporting agencies has the right to sell your information to anybody that might want to offer you credit. Do you think it's a god idea to accept cr4dit form a company that offers it to your in the mail? Then remove the temptation. Find out the numbers for each credit agency to call and opt out of this "service" they provide. credit repair advice
4. Get a copy of your credit report from each of the agencies - they are required to provide you with one free once a year. Once you have the reports, make a letter for each agency, listing all of the inaccurate information on it and asking that it be removed.
5. Know your rights. This is the most important thing. Don't let anyone pull the wool over your eyes as to what you can and cannot do or have done for you.
Source......
Link Building Service
The best way to protect yourself from the worst of this is to protect (and fix) your credit rating. Here are some tips to help get you started.
1. Keep making your payments on time. Every time an account gets two payments or more behind, that's another black mark on your record.
2. Don't close off credit cards or credit accounts thinking that will help your credit score - chances are it will hurt it instead.
3. Opt Out. Each of the credit reporting agencies has the right to sell your information to anybody that might want to offer you credit. Do you think it's a god idea to accept cr4dit form a company that offers it to your in the mail? Then remove the temptation. Find out the numbers for each credit agency to call and opt out of this "service" they provide. credit repair advice
4. Get a copy of your credit report from each of the agencies - they are required to provide you with one free once a year. Once you have the reports, make a letter for each agency, listing all of the inaccurate information on it and asking that it be removed.
5. Know your rights. This is the most important thing. Don't let anyone pull the wool over your eyes as to what you can and cannot do or have done for you.
Source......
Link Building Service
Friday, September 17, 2010
How to Profit From Credit Repair Services
You Must Play Your Role
There are many credit repair services visible on the internet for you to choose from. Some are quite good and can provide invaluable assistance in cleaning your credit report and improving your score. But once you sign on with one of these reputable companies, you need to play your part if you want to profit from your investment.
Making the Best Choice
Before we discuss the things you must do to get the most from credit repair services, let us touch on a few characteristics of the best companies. The best credit repair companies have been in business for a reasonable length of time and have the experience needed to deliver results, they have decent Better Business Bureau Records, and they offer FICO score consulting in addition to sending dispute letters.
Learning to Take Advice
Once you make your selection, it is critical that you play your role. When it comes to credit repair services there is no free lunch. The best of the breed will do the technical work and give you all of the advice you need to see an amazing change in your credit life, but once you have the advice you must follow it and insure that you do not backslide.
Stabilizing Your Finances
Financial stability is the first key to getting and preserving the results you will get from credit repair services. If you are still falling behind on your monthly obligations and struggling to make ends meet you are best advised to postpone your entry into the world of credit repair until you are more settled. The development of a reasonable, sustainable, budget, along with the creation of a saving plan is highly recommended.
Building a New Credit Profile
Build new credit. This is central to getting the benefit from credit repair services, and is the case even if you have open accounts. The FICO model will treat your effort to rebuild quite generously. For those whose credit is too poor to get regular credit cards, secured cards are very adequate and are capable of sending your scores up by over one hundred points within only six months.
Careful Planned Debt Management
Proper, score oriented, debt management is the next big job you must tackle to get the best results from credit repair services. Your FICO score will react dramatically, positively, to low-balance revolving debt. And of course you must make your payments right on time. Do not try to time your payments until the last possible moment, as mistakes happen. Consider setting up electronic payments to prevent errors.
Patience and Trust
Another worthy consideration when optimizing your credit repair services experience is patience. Some things will indeed happen really fast! But others factors involved with your FICO score are purely time-bound and require seasoning before delivering the full score benefit. The dispute process also may take a degree of fortitude. The credit bureaus can be less than cooperative. This is not personal, but a normal part of the routine. Your credit repair company will manage the ongoing effort, but you should expect that some redundant effort will be called for.
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