FilingBankruptcyNow.info Thinking About Filing Bankruptcy Now? Are you wondering about filing for bankruptcy? There was a time when just the thought of filing bankruptcy meant the end of your social life. Bankruptsy has helped people avoid the kind of stigma that can prevent them from re-establishing themselves as hard-working members of society. But times have [...]
Your credit report contains information about where you work, live and how you pay your bills (On time or not). It also may show whether you’ve been sued, arrested or have filed for bankruptcy with in the last 10 years. Companies called consumer reporting agencies (cra) or credit bureaus compile and sell your credit report to businesses all over the world.
Many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you’re considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process, clean credit is a must.
Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it’s important that the information in your report is complete and accurate.
Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. You want a clean credit report to be pulled. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.
Getting Your Clean Credit Report
If you’ve been denied credit, insurance, or employment because of information supplied by a credit reporting agency, the FCRA says the company you applied to must give you the agency`s name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you’re entitled to one free copy of your report a year.
If you simply want a copy of your report, call each credit bureau listed since more than one agency may have a file on you, some with different information.
The three major national credit bureaus are:
Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
Correcting Errors For Clean Credit.
To protect all your rights under the law and to keep your credit clean contact both the CRA and the information provider.
First to get clean credit reports, tell the credit reporting agency in writing what information you believe is inaccurate. Include copies (please keep your originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. Always keep copies of your dispute letter.
They must reinvestigate the items in question, usually within 30 days, unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file, then you will receive a clean credit report, with that item removed.
If your report contains erroneous information, the CRA must correct it(clean credit).
If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments ( 30 days or more), but failed to show that you were no longer delinquent, the CRA must show that you’re current.
If your file shows an account that belongs only to another person, the CRA must delete it.
When the reinvestigation is complete, they must give you the written results and a free copy of your clean credit report, if the dispute results in a change. If an item is changed or removed, they cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness.
Also, if you request, they must send notices of clean credit report corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their clean credit report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the credit agency, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (please not originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any credit reporting angency, it must include a notice of your dispute. In addition, if you are correct that is, if the disputed information is not accurate the information provider may not use it again, thus you will have a clean credit report.
When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for 7 years.
Clean Credit: There are certain exceptions:
Bankruptcy information may be reported for 10 years.
Information about criminal convictions may be reported without any time limitation.
Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.
Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
Adding clean credit accounts to your file:
Your credit file may not reflect all your clean credit accounts. Although most national department stores and all-purpose bank credit card accounts will be included in your file, not all creditors supply information: Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don’t report clean credit.
If you’ve been told you were denied clean credit because of an insufficient credit file or no credit file and you have accounts with creditors that don’t appear in your credit file, ask the CRA to add this information to future reports. This will help get you on the road to a clean credit report. Although they are not required to do so, many CRAs will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the CRA on a regular basis, these added items will not be updated in your file.
You should be with us in 2012, join now: my.barackobama.com We’ve accomplished so much since Election Day 2008, but let’s make sure we finish the job together in 2012. Election Day 2012 is exactly one year from this week. That’s why we’re not waiting to build this campaign. Watch the video, then commit to volunteer and say you’ll be with us in 2012. Click here to commit to volunteer: my.barackobama.com Since Election Day 2008, we’ve: • Saved over one million jobs in the US auto industry • 20 consecutive months of job creation • Took the fight to Al-Qaeda • Reduced and secured nuclear weapons • Passed health reform, lowering costs and insuring 32 million • Ended “Don’t Ask, Don’t Tell”: • Nominated first Latina to Supreme Court • Doubled college grants, now for 9 million students • New Protections against credit card companies • New 54.5 MPG fuel standards, saving $8200 per family • Reined in Wall Street –ended taxpayer bailouts • Ending the war in Iraq Excerpts from Barack Obama’s 2008 Presidential Election Night acceptance speech: “I will never forget who this victory truly belongs to — it belongs to you. It belongs to you. I was never the likeliest candidate for this office. We didn’t start with much money or many endorsements. Our campaign was not hatched in the halls of Washington — it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston. It grew strength from the young people who rejected the myth of their …
Canada is well- known to be one of the world’s leading countries when it comes to the bank and finance industries. This sector in Canada plays an important role in their economy and likewise also upsurges some of the other countries’ economies. Canadian banks continue to upsurge though the world economic situation is coming to its worst. These banks can still mange to operate the industry despite an aloof economy. This enlightening move is brought about by the rapid advancement of technology. The Internet comes hand in hand with these banks in creating a shield to battle out the financial stance.
One of Canada’s finest is the Royal Bank of Canada. Their online system has emerged from a widespread competition with other giant banking institutions. Creating an edge and has been brilliantly initiated the online banking systems which enable investors to do transactions over the internet. And adding up to this great feature, the online banking offers interest rates which are highly competitive and more likely amenable to consumers. This is one strategythey to uphold their investors. They do not look on the darker side of the current financial situation. Rather, they pursue to amplify the demands of consumers to keep the banking business running in shape.
The Royal Bank of Canada online banking has established its won website where clients and investors can make deals. This system has proven a cost effective approach to banking. They continue to invest and allot supplemental budget for technological advancements for their online banking feature. This enables and encourages more and more customers to engage in online banking considering the convenience and secured way of saving money. Responding to the infinite demands of customers who have experienced the convenience of online banking, by constantly updating clients and upgrades its systems accordingly. Due to the heightened competition even on online banking business, the Royal Bank of Canada online banking has a sturdy financial structure.
Banking online is taking a big leap in the industry of finance and banking along side with the up surging technological developments mainly the Internet. Not only that the Royal Bank of Canada offers high interest rates specifically for the “rainy days,” the bank also offers different bank accounts which you feel you can seek help from to when the economic hurricane hits you. The online banking system of Royal Bank of Canada also has customer service representatives which are always available online for inquiries, suggestions and support.
With such a system, one will be able to monitor his or her accounts closely even during the unlikeliest time of the day. The Royal Canada online is taking one step closer to invading the international scene with its branches extending strategically over the continents of Europe and Asia and even the United States. The Royal Bank of Canada’s system truly represents a confidant’s shoulder in times of financial instability.
You’re bankrupt. You’re doing all the right things to improve your credit and recover from your bankruptcy (i.e., managing your money and credit well, increasing your credit scores, paying your bills early or on time, and re-establishing credit).
So when does the dark cloud that’s been over you since you filed bankruptcy leave?
The answer is, “it depends.”
With some lenders, as long as your bankruptcy remains on your credit reports you will be denied credit. The good news is, there are many “normal” lenders who are willing to work with you after bankruptcy. You just need to know where to find them.
It’s NOT about working with lenders that are convenient for you. It’s about finding lenders that will work with you without taking advantage of your situation. Each lender sets their own “credit guidelines.” What are credit guidelines? They are simply the minimum requirements you must have in order to qualify for credit with that lender.
The three common credit guidelines for most lenders who work with people after bankruptcy are:
(1) the amount of time you have since your discharge (2) How you pay your bills after discharge (3) Your FICO credit scores.
Time will heal.
The maximum amount of time the dark cloud of bankruptcy follows you is up to 10 years. Remember, this dark cloud is only for a season in your life, not forever. Bottom line: the more time you have after your bankruptcy is discharged the more opportunities you’ll have to get credit.
But lenders also need to know you’ve recovered. Late payments after a discharged bankruptcy are bad news. Lenders need to see an early or on-time payment history to feel comfortable with you after bankruptcy.
There is no escaping a lender who will judge us on our credit scores. This is why it is so important to increase your scores by deleting inaccurate, outdated, and unverifiable information from your credit reports. Your FICO scores are just too important to ignore. You need to make it a priority to keep your FICO credit scores as high as they can be. High credit scores are the key to unlocking opportunities that have been hidden from you.
Let’s look at how lenders use credit scores so you can understand what I mean.
GETTING A MORTGAGE
Mortgage companies are pretty forgiving when it comes to lending money to someone who’s filed bankruptcy. In fact, after bankruptcy, it’s actually easier to get a mortgage on a new home than get approved for an unsecured credit card.
As long as your middle FICO credit score is 580 or above you will qualify for mortgage financing with no money down…just maybe not at the interest rate and terms you want. (This assumes you haven’t had a foreclosure in the last 24 months and you have a good payment history since your discharge.)
To get better terms and a lower interest rate, you need a higher middle credit score. A middle score of 600 will give you a lower interest rate and better terms. (This assumes you haven’t had a foreclosure in the last 12 months.) A middle score of 620 or above opens up even better options once you have two years after discharge.
PURCHASING A NEW CAR
A FICO credit score over 700 on the credit reporting agency the manufacturer uses will open up the floodgates for you. A score between 600 and 620 seems to be the bare minimum you need to qualify with most lenders for a good interest rate. Slimy lenders (the kind that wear lots of gold chains, polyester suits, and broadcast a hairy chest to the world) will help you if you have a lower score. Remember, many car dealers use only one FICO score to make their lending decisions. So, you’re always better off going to a dealer who uses the credit reporting agency where you have your highest FICO score.
UNSECURED CREDITCARDS
Some lenders just don’t want to do business with a bankrupt person.
Interviewing lenders BEFORE you apply for credit is so important. You need to determine their credit guidelines before you apply. (Read that sentence again!) Many unsecured credit card providers are 100% FICO credit score-based. That’s how they can offer you an answer so quickly if you apply by telephone or over the internet. The only thing they look at to make their credit decision is one of your FICO scores. A FICO score over 700 seems to be what they’re looking for.
BANK LOANS
Don’t expect too much from your banker until four years have passed and your FICO scores are above 680. However, all bankers are different. Find out what the possibilities are with your banker. Do they have any authority to make credit decisions?
After my bankruptcy I felt lucky to have a bank checking account, savings account, debit card (now they’re called Visa/MasterCard check cards), a secured Visa credit card, and a few secured bank loan.
A CREDIT LIMIT INCREASE
You need to be on a constant hunt for higher credit limits. Even if you don’t think you need them. It’s good for your scores, especially when your spending patterns remain the same.
You “earn” a higher credit limit by paying your bills early or on time. Your next step is requesting a credit limit increase every six months. Credit limit increases are usually based on how long you’ve been a customer; your payment habits; how long from the last time your credit limit was increased; and your FICO scores.
Again, anything over 700 opens the floodgates of options from most lenders. One key point to remember, when YOU request a credit limit increase the credit inquiry lowers your credit scores. When your lender does it in their normal course of doing business it does NOT lower your credit scores.
If you ask for credit limit increases from banks or credit unions, (I repeat, only banks or credit unions) apply for them all within a 14-day window. All credit inquiries from these sources during the 14-day period will only count as one credit inquiry.
If there was a magic FICO score to aim for (and there really isn’t) it would be 720. This score won’t open all the credit doors for you…but it will certainly open enough doors at normal interest rates to accomplish your goals.
If you are an entrepreneur, you should choose unsecured business loans. These offer more benefits and easy terms than traditional secured bank loans. Secured loans have rigid terms and conditions. Banks operate according to a fixed debt-equity ratio. This ratio is important to ensure the safety of the loans granted. Such inflexible terms can limit your options as an entrepreneur. Unsecured loans have no such rigidity attached with them. Avail Various Benefits The best feature is that you do not need to mortgage an asset against the loan. You can avail them, even if you have a poor credit rating or a bad credit history. It is not possible to take a secured loan with poor credit track, but you can always take an unsecured loan. They provide immense business opportunities. You can easily start your own venture or expand an existing one. You can purchase assets, services, machinery, and equipment without any difficulty. If you are short of working capital, then also you can take these loans and speed up the production process. Repayment is easy, for you can repay these loans when you have enough money. Flexible Terms And Conditions You can also take more orders and ensure the completion and delivery on time with these loans. They greatly aid in the expansion of business. The interest rate charged is higher than bank loans, but the convenience offered is unmatched. This is because of the risk factor involved in unsecured business loans. You can also modify the terms and …
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admin on February 9th, 2012
