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Which is worse for your credit bankruptcy or consumer credit counseling?
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Where can I find credit counseling to raise my score?
Credit counseling does not always work and may actually make your credit score worse. There are no quick fixes to raise credit scores and just pay your bills.
Is bankruptcy or repossession worse for your credit?
Both, Its bad debt period and you will suffer bad with either.
Is it better or worse for your credit to let the bank foreclose on a mortgage of a second property while facing bankruptcy?
A foreclosure or bankruptcy is never good for your credit, this is something you'd be better off discussing with an attorney. You can avoid foreclosure by filing bankruptcy.
If you just divorced and already have foreclosures and repossessions on your credit report will filing bankruptcy help your credit score?
No, filing bankruptcy will never help improve your credit score, it stays on your report 10 years whereas a repo or foreclosure normally remain 7 years. So bankruptcy would only make your credit worse.
What looks worse on your credit report Late payments or a bankruptcy?
Bankruptcy looks worse on your credit report than a late payment. They will both drop your score quite a bit, but a bankruptcy lets your lenders know you gave up on the debts owed, so making it harder to get new loans. You can always try to contact the credit bureaus to try and dispute the negative listings and have them removed if possible.
What is worse on your credit report charge offs repossessions or bankruptcy?
Any legal item that is shown in the public records portion of your credit report is a significant derogatory. That having been said; your credit rating and credit score takes into consideration ALL the factors showing. So it depends on what your definition of "worse" is. I have clients 2-3 years out of bankruptcy with higher credit scores that clients with pages of clean accounts that have recent late payments.
How do you restore credit history after the bankruptcy?
It all depends on how yu want to do it. The best advice I can give is to say take it slow and be very very careful. After discharge of the debts, those who declared bankruptcy receive tons of credit offers. Most of them are very bad for the consumer. I usually suggest someone start out with a pre-paid credit card and then move on to a different credit card once they learn how to control their financial situation. The worst thing to do is to get yourself in a pile of debt again, because it raises the percentage rates for everyone and if you're unable to handle it, you will not be able to declare bankruptcy again for at least 8 years. The more people who declare bankruptcy, the worse the credit card terms get for everyone. This trend is fact, not fiction and is happening in horrendous (and secret) ways right now...
What worse bankruptcy or debt relief?
If you have a pile of unpaid credit card bills and simply can't pay the total amount due. Then you have two options for dealing with the debt you've accumulated: liquidation or bankruptcy. When you declare bankruptcy, you're asking court to wipe your financial slate clean.
Which hurts your credit worse bankruptcy or late payments?
Late payment will drive your credit score into the ground rapidly. Many people question filing a Bankruptcy even though their credit is shot through late payments on mortgages and other bills. Filing Bankruptcy put all collection activity on hold and your accounts show current and up to date as long as you make your payments on time. Most people are surprised tofine their credit in much better shape after a BK than before with a much higher credit score Late payments can always be corrected, and this will be reflected on your credit file. Bankruptcy, however, will stay on your credit file for six years.
If you have a lot of debt should you use Care One Credit?
If you have a lot of debt you should consider filing for bankruptcy before things tend to get worse. You can talk to your current banker about your debt situation.
What is the difference between repossession and bankrupcty and which one is worse?
For any personal credit related concerns I recomment a website that I know has many very good answers to even the toughest questions. It is an 'ask' site directly on Experian's website which is hosted by Maxine Sweet, the V.P. of Public Affairs for Experian. You can get to the site from the following link: http://www.experian.com/ask_max/index.html A repossession is the term applied to action taken on a defaulted vehicle loan. The vehicle, which is the security of such a loan, is either involuntarily repossessed (taken), or voluntarily turned in. Repossession is simply a word. The derogatory credit issue is the fact that repossession only ever follows default of a loan. A bankruptcy is a legal action with its' own set of ramifications and consequences. Consumers file bankruptcy when they are unable to repay debts. As such, it is serious and can impact their credit for up to 10 years from the date of discharge. Because bankruptcy is a legal action, it appears in the "public records" portion of a consumer's credir report. It requires a disposition, either a discharge or an order to vacate (dismissal). Consumers with ANY legal item in the public records portion of their credit (bankruptcy, tax liens, foreclosures and judgments) take larger deductions to their credit scores for all adverse activity during the reporting period. Therefore, a bankruptcy is considered "worse" on a consumers credit than a repossession.
Which is worse for your credit bankruptcy or a foreclosure?
Bankruptcy and foreclosure are both derogatory legal actions in the public record portion of a consumer's credit report. As such, they will each have a significant impact on any person's credit standing. How much either would impact your credit would depend on ALL the factors showing in your credit. You should consult with a knowledgable attorney to discuss the implications prior to proceeding with either action. Bankruptcy, being the last resort for many consumers, has a 10-year statute of limitation. It hopefully clears away all outstanding debt and can (in some states) preserve important assets, like a home. Foreclosure has a 7 year SOL. But there would be a "double hit" to a consumer's credit score; once for the trade line and another hit (with it's own 7 year SOL) for the legal entry. Any consumer having a foreclosure would find it extremely difficult to get mortgage financing for a large period of the time it shows. Obviously, to a mortgage lender, foreclosure is the worst indicator of risk when evaluating a potential borrower for a home loan. So, all factors, including your future goals, would need to be taken into consideration before making a decision between these two actions.
