Life is Unpredictable
There are innumerable reasons people fall behind on their bills. Getting back on your feet after a period of financial challenge can be hard. But if you take the proper steps you will not only succeed, but emerge stronger than ever. Here are some awesome credit repair tips along with some advice on organizing your efforts.
Post Bankruptcy Cleanup
If events of your life led to the necessity for bankruptcy, don’t feel bad. You are not alone. And if you make sure your credit report reflects the bankruptcy properly, your credit scores will suffer only a minimal impact.
Once a bankruptcy is complete the items that were discharged should no longer report as collections, charge offs, or with past due balances. If you ignore your credit reports after a bankruptcy these items can linger and continue to weigh down your credit scores for years to come. Post-bankruptcy credit repair is easy. Make a copy of your bankruptcy discharge, along with the schedule of items included, and send it to all three credit bureaus requesting them to clean up each effected item.
Student Loan Problems
Student loans are unique among all other liabilities. It is almost impossible to discharge a student loan in bankruptcy, and there is no statute of limitations for collectability. Unlike old credit card debt, you can’t just wait out the next few years until it goes away; student loan debt is here to stay. It is for this reason that we suggest to our customers that they pick up the phone and deal with it right away.
But there is good news. First, the law requires that student loan lenders accommodate borrowers by making repayment as flexible and affordable as possible. And second, there is assistance available to help you understand your rights. If you are having any kind of issues with your student loans, if they are currently past due, or even long since in default, please call the Student Loan Ombudsman Office at (877) 557-2575. Call today!
Credit Card Re-Aging
If you are currently behind on credit card payments and are working hard to catch up there is a way out. There is a little known procedure offered by credit card issuers known as “re-ageing.” This procedure will allow you to convert your past due balance into a current balance, and will eliminate the entire history of late payments on the account. That’s right! Once the process is complete your account will be entirely current, and will show on your credit report as if there had never been an issue. This is a super effective credit repair technique!
Here are the rules. The account in question must have been open for at least nine months. For your part, you must offer to make three on-time payments. Re-ageing is designed for people that have been through a period of hardship and are now ready to get back on track; so you need to be in this category, and you must communicate this to the credit card company.
Just call the credit card issuer and tell them that you are interested in their re-aging policy. Some card issuers refer to this process as “curing”. If the person you are speaking with does not know what you are talking about, please ask for their supervisor. I suggest that you organize your thoughts before you call. Remember to tell them that your life has changed and you are going to be a great customer!
Budget Thoughts
An intelligent credit repair effort can make a world of difference. But in the long run, the key to maintaining great credit is living within your means. Life will not always cooperate with your attempt to stay on a budget, but the more careful you are to plan your finances while times are good, the more resilient you will be when unforeseen circumstances arise.
Organizing a budget requires a bit of careful thought - and a pen and paper! You will need to consider all of your monthly expenses. Make sure to include everything, rent, mortgage payments, utilities, auto expenses, food, etc. Knowledge is power. Too many people lose control of their finances simply because they don’t take the time to know what their commitments are. Only when you know your limits can you make reasonable decisions about what to purchase, or what amount of new debt is manageable.
Savings Tips
While you are contemplating your budget, make an allowance for savings. In the long run savings will be the most important contributor to financial stability. Make a habit of setting aside money. Savings leads to confidence and peace of mind. In time your savings will provide the foundation of unshakable credit that is capable of withstanding all of the events of life. Good luck!
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Friday, February 29, 2008
Friday, February 22, 2008
Credit Repair Essential Guidelines
The Answers You Need
How long can derogatory items remain on your report? How can you spot the items that should be removed? Here is a powerful overview of the most important credit repair guidelines.
Let's Get to Work!
We speak with people all day long about their credit reports. Here is a review of the most common questions that we encounter, as well as guidance on understanding and resolving the related issues. These details, if properly understood and acted on, can make a significant difference in your credit score.
Chapter 7 Bankruptcy
A discharged Chapter 7 bankruptcy will show in the Public Records section of your credit report for 10 years from the initial filing date – please note that the filing date is different from, and prior to, your discharge date.
Debts that are discharged in a bankruptcy can continue to report for seven years. It is important to note that once a debt is discharged it should not report with a past due balance, or in a charge off or collection status.
Dismissed Chapter 7 bankruptcies will report for ten years. A dismissed bankruptcy is a bankruptcy which was filed and thereafter cancelled or disallowed.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy which has been completed will continue to report for seven years from the initial filing date, rather than the discharge date.
A Chapter 13 bankruptcy which was not completed will continue to report for seven years from the initial filing date.
Bankruptcy and the Fair Credit Reporting Act – A Legal Note
It may be of interest to note that the only reference to bankruptcy in the Fair Credit Reporting Act is a blanket rule that limits the reporting time to 10 years following the filing date. See § 605. [15 U.S.C. §1681c] (a). The credit bureaus, however, voluntarily make exceptions for Chapter 13 bankruptcies as noted above.
Collections - Overview
Collections are unique for the reason that they typically change hands, often several times during their lifetime. Important credit repair tip! Please note that only one collector at a time can legally report the debt; and only the collector that owns the debt can legally report it. All duplicate collection accounts for the same debt should be deleted from your credit report.
Collections can report for seven years from the original default date. The original default date is defined as the first time that you missed a scheduled payment. The original default date cannot be reset, and the reporting period cannot be extended by subsequent collectors.
Collections of Charged Off Accounts
Collections of charged off accounts have a slightly different reporting period than other collections. Charged off accounts can continue to show on your credit report for seven years plus 180 days from the date of original default, as defined above. This means that this extended reporting period does not start with the charge off date, but rather with the earlier default date.
Once a creditor has passed a charged off account to a collector, the original creditor cannot report the charged off amount as a past due balance. The balance should report as zero; the charged off amount may report on a separate line.
Unpaid Judgments
Unpaid judgments can continue to report for seven years or until the governing state statute of limitation has expired. You need to check your state statute of limitations to know for sure. State statute of limitations for judgments range from 4 years (PA) to 21 years (OH), and in some cases may be renewed one or more times.
Paid Judgments
Paid judgments can report for seven years from the initial filing date. This is handy to know if you are in a credit repair program; you may quickly remove a judgment from your report if you are willing to pay it, as long as the original filing date is seven years old. For legal support see FTC Official Staff Commentary § 605(a)(2): “Paid judgments cannot be reported for more than seven years after the judgment was entered, because payment of the judgment eliminates any "governing statute of limitations'' under this subsection that might otherwise lengthen the period.”
Tax Liens
Paid tax liens may not report more than seven years beyond the date of payment. Unpaid tax liens may report as long as they are in effect. If you are in doubt consult a CPA or tax attorney.
Student Loans
Late payments on your student loans will cease reporting after seven years. Defaulted student loans are another story…
A 1991 amendment to the Higher U.S. Department of Education Act lifted all time limits for collection of student loans. The reporting of defaulted student loans on your credit report can now go on forever. In addition, a 1998 change in federal law made it virtually impossible to discharge a student loan in bankruptcy.
If you are in default on a student loan you are well advised to address the issue, sooner rather than later. Fortunately, there are excellent rehabilitation and consolidation programs now available to everyone. These programs offer affordable repayment options and can even erase the default status from your credit report! This can prove to be a painless and powerful step for anyone in a credit repair program. Explore your options today with the Student Loan Ombudsman Office at (877) 557-2575.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
How long can derogatory items remain on your report? How can you spot the items that should be removed? Here is a powerful overview of the most important credit repair guidelines.
Let's Get to Work!
We speak with people all day long about their credit reports. Here is a review of the most common questions that we encounter, as well as guidance on understanding and resolving the related issues. These details, if properly understood and acted on, can make a significant difference in your credit score.
Chapter 7 Bankruptcy
A discharged Chapter 7 bankruptcy will show in the Public Records section of your credit report for 10 years from the initial filing date – please note that the filing date is different from, and prior to, your discharge date.
Debts that are discharged in a bankruptcy can continue to report for seven years. It is important to note that once a debt is discharged it should not report with a past due balance, or in a charge off or collection status.
Dismissed Chapter 7 bankruptcies will report for ten years. A dismissed bankruptcy is a bankruptcy which was filed and thereafter cancelled or disallowed.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy which has been completed will continue to report for seven years from the initial filing date, rather than the discharge date.
A Chapter 13 bankruptcy which was not completed will continue to report for seven years from the initial filing date.
Bankruptcy and the Fair Credit Reporting Act – A Legal Note
It may be of interest to note that the only reference to bankruptcy in the Fair Credit Reporting Act is a blanket rule that limits the reporting time to 10 years following the filing date. See § 605. [15 U.S.C. §1681c] (a). The credit bureaus, however, voluntarily make exceptions for Chapter 13 bankruptcies as noted above.
Collections - Overview
Collections are unique for the reason that they typically change hands, often several times during their lifetime. Important credit repair tip! Please note that only one collector at a time can legally report the debt; and only the collector that owns the debt can legally report it. All duplicate collection accounts for the same debt should be deleted from your credit report.
Collections can report for seven years from the original default date. The original default date is defined as the first time that you missed a scheduled payment. The original default date cannot be reset, and the reporting period cannot be extended by subsequent collectors.
Collections of Charged Off Accounts
Collections of charged off accounts have a slightly different reporting period than other collections. Charged off accounts can continue to show on your credit report for seven years plus 180 days from the date of original default, as defined above. This means that this extended reporting period does not start with the charge off date, but rather with the earlier default date.
Once a creditor has passed a charged off account to a collector, the original creditor cannot report the charged off amount as a past due balance. The balance should report as zero; the charged off amount may report on a separate line.
Unpaid Judgments
Unpaid judgments can continue to report for seven years or until the governing state statute of limitation has expired. You need to check your state statute of limitations to know for sure. State statute of limitations for judgments range from 4 years (PA) to 21 years (OH), and in some cases may be renewed one or more times.
Paid Judgments
Paid judgments can report for seven years from the initial filing date. This is handy to know if you are in a credit repair program; you may quickly remove a judgment from your report if you are willing to pay it, as long as the original filing date is seven years old. For legal support see FTC Official Staff Commentary § 605(a)(2): “Paid judgments cannot be reported for more than seven years after the judgment was entered, because payment of the judgment eliminates any "governing statute of limitations'' under this subsection that might otherwise lengthen the period.”
Tax Liens
Paid tax liens may not report more than seven years beyond the date of payment. Unpaid tax liens may report as long as they are in effect. If you are in doubt consult a CPA or tax attorney.
Student Loans
Late payments on your student loans will cease reporting after seven years. Defaulted student loans are another story…
A 1991 amendment to the Higher U.S. Department of Education Act lifted all time limits for collection of student loans. The reporting of defaulted student loans on your credit report can now go on forever. In addition, a 1998 change in federal law made it virtually impossible to discharge a student loan in bankruptcy.
If you are in default on a student loan you are well advised to address the issue, sooner rather than later. Fortunately, there are excellent rehabilitation and consolidation programs now available to everyone. These programs offer affordable repayment options and can even erase the default status from your credit report! This can prove to be a painless and powerful step for anyone in a credit repair program. Explore your options today with the Student Loan Ombudsman Office at (877) 557-2575.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Friday, February 1, 2008
Credit Repair and Your Life in 2008
Now is the Time!
Good credit has never been so important. The entire credit landscape has changed over the last year. And 2008 brings new and unprecedented challenges. A leading credit repair expert discusses the ways that you can adapt and thrive in this new environment.
A Little History
In the late 1990s real estate values begin to increase at an unexpected pace. In response to the healthy market, lenders eased their credit guidelines. Mortgage money was plentiful. Default rates on mortgages were minimal. Home values continued to rise and lenders perceived little or no risk to their collateral. Borrowers with adjustable rate mortgages could easily refinance if faced with an interest rate adjustment. As the party continued, new lenders entered the market to capitalize on the opportunity. And as competition among lenders increased, credit guidelines eased even more.
The First Signs of Change
In mid-2005 the real estate market was peaking. A record number of Americans owned homes, and millions were supplementing their income by speculating in the real estate market. The shift began slowly at first. Alan Greenspan, expressing concern about the U.S. Housing market said that, “at a minimum, there’s a little froth in the housing market, and it’s hard not to see that there are a lot of local bubbles.” The media picked up on the phrase, and before long we were all hearing about the real estate bubble. Could the meteoric rise in home prices last? Would real estate values slowly stabilize? Or would the bubble burst?
The Big Shift
Behind the scenes lenders were becoming concerned. The balance in the real estate market was changing. Homes were no longer selling in a matter of days and inventory levels were increasing. Soon, credit guidelines were tightening. As lenders began to withdraw from the market the real estate market slowed further. And as the real estate market slowed further, lenders tightened more, many shutting their doors and withdrawing entirely.
A Whole New World
As 2008 gets underway, signs of stability are showing. The credit market has fully reinvented itself. The days of creative financing are past, and ripples from the mortgage market have spread throughout the entire financial world. Credit issues, once easy to work around, must now be addressed and overcome. Now is the time to become pro-active. Now is the time to insure that your credit is as good as it can possibly be. Now is the time to begin your credit repair effort.
Getting Started
What are the facts? Where are you now? Get copies of all three of your credit reports. It is essential to identify every item on your credit that may be having a negative impact on your credit scores. Knowledge is power. Successful credit repair is all about the details. I strongly suggest that you set aside enough time to take a close look at your reports. The investment of your time in this project will pay dividends beyond your imagination.
Give Yourself the Benefit of the Doubt
Credit reports are full of errors. You should examine your report with a critical eye. If you see anything at all that you do not recognize it is important that you question it. It is not enough that an item look familiar. Don’t speed-read your credit report; credit repair requires patience. Do you see late payments? If you are not 100% certain that the information is correct, you should question it. Are their collections? Unless you are in communication with the collector and you have received full and satisfactory proof that they have the legal right to collect the debt, question it! Does it look like derogatory accounts are reporting more than one time? Question them!
A Great Collection Tip
When an account is charged-off, the debt is normally sold to a collector, and just as often, re-sold again. If a collector does not currently own the debt, they have no legal right to report the collection. Most collectors do not bother to cease reporting when they should. When it comes to your credit report, you should not always believe what you see. Remove these obsolete collections and watch your credit scores go up.
Check Those High Credit Limits
Most people know that the relationship between their credit card balances and their high credit limits can have a major effect on their credit score. Did you know that many credit card issuers fail to report the high credit limit properly? Track down any underreported high credit limits and correct them. This type of reporting error may not be as easy to spot as obvious derogatory items, but your patient credit repair effort will pay off.
Charge-off Pointer
The statute of limitation for reporting a charged-off account is seven years plus 180 days from the date of your original default. The date of your default is the date of the first missed payment that led to the charge-off. Collectors cannot restart the clock. Collectors often illegally re-set the clock, and collection accounts may linger for years. If you see a collection on your report for an account that went into default more than seven years plus 180 days ago, question it! It will be removed.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Good credit has never been so important. The entire credit landscape has changed over the last year. And 2008 brings new and unprecedented challenges. A leading credit repair expert discusses the ways that you can adapt and thrive in this new environment.
A Little History
In the late 1990s real estate values begin to increase at an unexpected pace. In response to the healthy market, lenders eased their credit guidelines. Mortgage money was plentiful. Default rates on mortgages were minimal. Home values continued to rise and lenders perceived little or no risk to their collateral. Borrowers with adjustable rate mortgages could easily refinance if faced with an interest rate adjustment. As the party continued, new lenders entered the market to capitalize on the opportunity. And as competition among lenders increased, credit guidelines eased even more.
The First Signs of Change
In mid-2005 the real estate market was peaking. A record number of Americans owned homes, and millions were supplementing their income by speculating in the real estate market. The shift began slowly at first. Alan Greenspan, expressing concern about the U.S. Housing market said that, “at a minimum, there’s a little froth in the housing market, and it’s hard not to see that there are a lot of local bubbles.” The media picked up on the phrase, and before long we were all hearing about the real estate bubble. Could the meteoric rise in home prices last? Would real estate values slowly stabilize? Or would the bubble burst?
The Big Shift
Behind the scenes lenders were becoming concerned. The balance in the real estate market was changing. Homes were no longer selling in a matter of days and inventory levels were increasing. Soon, credit guidelines were tightening. As lenders began to withdraw from the market the real estate market slowed further. And as the real estate market slowed further, lenders tightened more, many shutting their doors and withdrawing entirely.
A Whole New World
As 2008 gets underway, signs of stability are showing. The credit market has fully reinvented itself. The days of creative financing are past, and ripples from the mortgage market have spread throughout the entire financial world. Credit issues, once easy to work around, must now be addressed and overcome. Now is the time to become pro-active. Now is the time to insure that your credit is as good as it can possibly be. Now is the time to begin your credit repair effort.
Getting Started
What are the facts? Where are you now? Get copies of all three of your credit reports. It is essential to identify every item on your credit that may be having a negative impact on your credit scores. Knowledge is power. Successful credit repair is all about the details. I strongly suggest that you set aside enough time to take a close look at your reports. The investment of your time in this project will pay dividends beyond your imagination.
Give Yourself the Benefit of the Doubt
Credit reports are full of errors. You should examine your report with a critical eye. If you see anything at all that you do not recognize it is important that you question it. It is not enough that an item look familiar. Don’t speed-read your credit report; credit repair requires patience. Do you see late payments? If you are not 100% certain that the information is correct, you should question it. Are their collections? Unless you are in communication with the collector and you have received full and satisfactory proof that they have the legal right to collect the debt, question it! Does it look like derogatory accounts are reporting more than one time? Question them!
A Great Collection Tip
When an account is charged-off, the debt is normally sold to a collector, and just as often, re-sold again. If a collector does not currently own the debt, they have no legal right to report the collection. Most collectors do not bother to cease reporting when they should. When it comes to your credit report, you should not always believe what you see. Remove these obsolete collections and watch your credit scores go up.
Check Those High Credit Limits
Most people know that the relationship between their credit card balances and their high credit limits can have a major effect on their credit score. Did you know that many credit card issuers fail to report the high credit limit properly? Track down any underreported high credit limits and correct them. This type of reporting error may not be as easy to spot as obvious derogatory items, but your patient credit repair effort will pay off.
Charge-off Pointer
The statute of limitation for reporting a charged-off account is seven years plus 180 days from the date of your original default. The date of your default is the date of the first missed payment that led to the charge-off. Collectors cannot restart the clock. Collectors often illegally re-set the clock, and collection accounts may linger for years. If you see a collection on your report for an account that went into default more than seven years plus 180 days ago, question it! It will be removed.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
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