I have declared bankruptcy which included a vehicle re-possession and thank God, I now have great credit again! So good in fact, that I have three credit cards! This process will take at least ten years, but if you are in real trouble and have no other way out, it does work.
Your first step is to acquire a secured credit card. Depending on how damaged your credit is will determine how much you have to pay and how much you will receive. I applied for a Capital One Mastercard, paid $75 and had a limit of $300. Because I used the card and paid it every month, I built up a positive credit record and now have a lower interest rate, higher credit limit and pay no annual service fees.
Make sure that you use the card in place of a regular purchase then set the money aside and pay the card BEFORE your due date to avoid paying interest i.e: you have $200 for groceries, put the groceries on your credit card and put the $200 cash aside then a day or two before your minimum payment is due put the $200 you saved on your credit card, no interest, card is paid and you get kudos on your credit score. Do this on a regular, at least monthly basis and you'll see a great improvement.
I then went to a car dealership that specializes in bad credit (I'm from Canada and so went through Mac James Motors) but if you look through your local yellow pages you should be able to locate a dealership that advertises bad credit sales. The interest rate is high and the financing is usually 36 months which makes your monthly payments higher than your average vehicle loan but the improvements it makes to your credit score is well worth the price providing you can afford the payments (I financed a $10,000 car at $439/mth for 36mths at a 29% interest rate for a total of @$16,500).
You can also go to The Brick or Rent-to-Own and finance some furniture, entertainment system, etc and as long as you pay on time, everytime you will see an eventual improvement in your credit (takes a bit longer than high risk credit cards and auto financers since those typically report to credit bureau every month as opposed to rent-to-own type places that typically report every 6 mths)
To track your credit score, apply for it every 6 mths to see where your rating is, what's affecting it and ensure that it is accurate since there have been known cases of credit report errors.
The only two ways to have a negative item removed from your credit report is by disputing the negative item with the credit bureau reporting it or time. If the information is correct regarding the repossession it will be on your credit report for at least 7 years. You can contact the creditor and start a payment plan and have the credit bureau put a note in your public credit file that a payment plan has been started. If you dispute the item and it can not be proved within 30 days or their records are incorrect, they must remove it from your credit report or correct the information.
To repair your credit in general, you must have negative accounts removed and positive accounts added.
Please note that you must keep your focus on your overall credit score, not just removing that repossession. Also placing a note on your credit report does not help with your credit score. There is a process to the credit system and you mus have full knowledge in order to maximize results. Adding trade lines really helps but know your goals. If you are seeking a new car with limited credit history and that repossession it is virtually impossible to get a new car from a credible lender. You may have to go to one of those carry the note car companies. However, if you have a history of good credit and have made successful car payments with that repossession, then getting a car loan may not be as difficult with a good down payment. Just know that there is a home credit score, car credit score and credit card credit score. Obtaining credit for anyone of those categories can be different. You must know the difference.
The only real way to repair your credit is to stop buying things on credit so often. If you can not pay cash for a car, use the bus until you can buy a car.
Credit is based on your history of paying bills. If you get a bankruptcy added, you are looking at a decade of high payments for everything before you start seeing some sunlight. Even then, some companies will never give you credit after a bankruptcy. You are ALWAYS better off trying to pay your debt as opposed to running away from your promises.
Your credit score is based on 1. Your payment history 2. The amount of debt you could get from your cards and 3. The amount of debt you really have.
Not paying a bill and allowing a car to go repo on you is a big no no. Getting credit cards and never using them is a good thing, if you do not have to pay an annual charge.
What you really want is someday having financial security, not a good credit score. This is done by not living beyond your means. Do not buy stuff you do not have the cash for. Do not go on vacation if you have not paid your car off in full.
True independence and true freedom is having money in the bank, not owning the task masters at a bank. If you have allowed a car to go into repossession, pay the rest of the car off and stop over spending for a few years. That is the only honest method of repairing your credit. Remember you really want to have money in the bank, not a good credit rating to become a slave to debt again.
Actually, I wouldn't recommend closing your credit card account, closed accounts impact your score and do nothing to help improve it. If you zero balance the card just put it in your sock draw get gas or pay a bill with it once a month and then P.I.F. it when you get the bill, that way your not paying any interest, the credit card companies hate when you do that! LOL It makes you look good it fakes up your score and your utilization of your credit limit is well below the recommended 35%.
From what I understand, if you are closing an account in good standing, it is important to include in your letter a request, stated clearly and in no uncertain terms, that your credit record show YOU were the one to request that your account be closed and NOT your credit card company.
This way in the future anyone needing to check your credit will see this and know that the account was not closed for other reasons that could reflect poorly on your rating.
It might not hurt, as a follow up, to check your credit record. I know sometimes it's recommended to check your credit record yearly in order to check for errors and mistakes.
However, I've also read that you shouldn't check it TOO often because this can adversely affect your record or score.AnswerFirst, checking your credit score counts as a SOFT inquiry, which has a remotely adverse affect on your credit after like 100 times. And when I say remotely, I mean 1 point. You don't need to write out a letter, just call them and tell them you would like to close the account. Wait 60 days and check your credit report, if it was closed "by credit issuer" according to the credit report, then just call up the company. If you were in good standing, you'll be fine. AnswerA better question is, why do you want to close your account? If you aren't using the card, that doesn't mean you should close the account; in fact, doing so can hurt your credit score (i.e., the score that tells companies whether you are a good candidate to loan money to). These companies, when they look at your credit report, want to see a few things:
1) Do you have a history of credit being extended to you? They want to see a long history, which is why you should NEVER close the account for the credit card you've had the longest, even if you never plan to use it again (unless, perhaps, you're paying a yearly fee, but--even then--call them to see if they'll waive the fee; tell them you're thinking of closing your account otherwise): keeping the account open keeps it on your credit history, showing that you've have credit for a while.
2) Do you have multiple types of credit (credit cards, mortgage, car loan, cell phone, student loan, etc.)? They like to see a mix.
3) How much of your credit do you use? They like to see that you use no more than around 30% of the credit available to you. For example, let's say you have two credit cards--one with a $10000 limit, one with a $20000 limit--and so, you have $30000 of available credit. You owe $5000 on the card with a $10000 limit and $0 on the $20000 card. That means you're using about 17% of your available credit ($5000 of $30000). That's fine. But let's say you close your $20000 card. Now, all of a sudden, you're using $5000 of $10000 in available credit--50%. That looks horrible--like you are living beyond your means, getting by on credit, even though you owe THE EXACT SAME AMOUNT OF MONEY as you did when you had $30000 of available credit. But, by closing the account, you jacked up your debt ratio past 30%, making you look like a poor manager of credit. People will be less likely to offer you credit now, and they'll offer you worse interest rates when they do.
So--if you want to close the account, make sure it's for the right reason, such as it's costing you an annual fee. Otherwise, if you can hang on to the card, do it. If you are worried you'll use it when you shouldn't, put it in a bag of water and put the bag in the freezer. That way you'll have to wait for it to thaw before you can use it, which will cut down your impulse purchases.
Fix Bad Credit
1. DELETE COLLECTION ACCOUNTS
Did you know that paying a collection account can actually reduce your score? Here's why: credit scoring software reviews credit reports for each account's date of last activity to determine the impact it will have on the overall credit score. When payment is made on a collection account, collection agencies update credit bureaus to reflect the account status as "Paid Collection". When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit score more severely. This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score.
How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus. Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort.
2. DELETE PAST DUE ACCOUNTS
Within the delinquent accounts on your credit report, there is a column called "Past Due." Credit score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported.
3. DELETE CHARGE OFFS AND LIENS
Charge offs and liens do not affect your credit score when older than 24 months. Therefore, paying an older charge off or a lien will neither help nor damage your credit score. Charge offs and liens within the past 24 months severely damage your credit score. Paying the past due balance, in this case, is very important. In fact, if you have both charged off accounts and collection accounts, but limited funds available, pay the past due balances first, then pay collection agencies that agree to remove all references to credit bureaus second.
4. DELETE LATE PAYMENTS
Contact all creditors that report late payments on your credit and request a good faith adjustment that removes the late payments reported on your account. Be persistent if they refuse to remove the late payments at first, and remind them that you have been a good customer that would deeply appreciate their help. Since most creditors receive calls within a call center, if the representative refuses to make a courtesy adjustment on your account, call back and try again with someone else. Persistence and politeness pays off in this scenario. If you are frustrated, rude, and unclear with your request, you are making it very difficult for them to help you.
5. CHECK YOUR CREDIT LIMIT(S) AND EVENLY DISTRIBUTE BALANCES
Make sure creditors report your credit limits to bureaus. When no limit is reported, credit scoring software scores the account as though your current balance is maxxed out. For example, if you know that you have a $10,000 limit on your credit card, make sure that the limit appears on the credit report. Otherwise, your score will be damaged as severely as if you were carrying a balance of the entire available credit.
Credit scoring software likes to see you carry credit card balances as close to zero as possible. If it is difficult for you to pay down your balances, read the following guidelines to maximize your score as much as possible under the circumstances:
6. DO NOT CLOSE YOUR CREDIT CARDS
Closing a credit card can hurt your credit score, since doing so affects your debt to available credit ratio. For example, if you owe a total credit card debt of $10,000 and your total credit available is $20,000, you are using 50% of your total credit. If you close a credit card with a $5,000 credit limit, you will reduce your credit available to $15,000 and change your ratio to using 66% of your credit. There are caveats to this rule: if the account was opened within the past two years or if you have over six credit cards.
The magic number of credit card accounts to have in order to maximize your score is between 3 and 5 (although having more will not significantly damage your score). For example, if a card was opened within the past two years and you have over six credit cards, you may close that account. If you have more than six department store cards, close the newest accounts. Otherwise, do not close any at all.
7. BECOME AN AUTHORIZED USER
(Note: Although this tactic is no longer effective for Experian, both Trans Union and Equifax consider authorized user accounts when calculating your credit score.) If you have a short and limited credit history you can ask someone who is a primary account holder to add you to their account as a joint account holder or an authorized user. When added, the primary account holder's credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit and (2) has had good payment history on the card for seven years or longer. The longer the history, the better. Being an authorized user is potentially detrimental to your credit score if, for example, the primary card holder carries a high balance on the card and has had it less than five years.
8. KEEP YOUR OLD CREDIT CARDS ACTIVE
15% of your credit score is determined by the age of the credit file. Fair Isaac's credit scoring software assumes people who have had credit for a longer time are at less risk of defaulting on payments. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you've had credit. Use the old card at least once every six months to avoid the account rating to change to "Inactive." Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac's credit scoring software, so you won't get the benefit of the positive payment history and low balance that card may have. The one thing all credit reports with scores over 800 have in common is a credit card that is twenty years old or older. Hold onto those old cards!
No 575 is a horrible score
A score is a 'group of 20' in numbers. So, that would be 20 years. Lincoln's 'four score and seven' was to indicate 87 years.
It means you have okay credit. Not great, not terrible. You'd probably qualify for a loan but wouldn't get the best terms.
yes. it is average. anthing above 700 is considered good.
It can be but I have found that if you have good rental history you should be able to rent. My husband and I filed bankruptcy about a year ago. He then left and I lost everything, now trying to start over with a recent bankruptcy is challenging. I have found no one that will rent to me and I have good rental history.There should be a law, I do not believe that credit should reflect on the rental of a house. Good luck to all that are trying. After filing bankruptcy it is very hard to obtain housing in an upscale area. Some places will not rent to you until seven years post bankruptcy. I have learned that if you maintain a good rental history and aren't deliquent on any of your accounts, then you may be able to rent a house/apartment through a lowerscale or private owner. * i would agree that it is hard but i also think that you can get help and try to get some money back
How embarrassing! It is more like a red flag (to you) that you have an issue with the credit card company. It could be in error, but it may also mean that you have met or exceeded your limit. Contact the credit card company as soon as possible to solve the issue.
The length you've had a card does help your credit score. That's why they say to keep the old ones. Plus your ratio of available credit to your balance is important.
According to SmartMoney.com:
"Scores above 700 indicate a relatively low credit risk, according to Fair Isaac, while scores below 600 indicate relatively high risk and may result in credit denial or elevated interest rates."
If a creditor says you were denied because you are too near your limits on your credit cards or you have too many charge card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.
Sometimes you can be denied because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down. The reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.
If you've been denied, or didn't get the rate or terms you want, ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and the best ways to improve your application. If you are approved, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your report, be sure to dispute the inaccurate information in your credit report.
If you have been denied credit entirely (often because of the Catch-22 situation where lenders don't want to offer credit to anyone without a credit history--but how do you get a credit history without credit?), you can apply for secured credit cards, which essentially allows you to deposit a sum of money (say, $500) and then "charge" purchases, up to $500. By using this card responsibly (such as by not going over the limit--even better, creditors like it if you use no more than 30% of your available credit, as it shows you aren't likely to incur debts you can't pay--and by paying your bill on time--never late, even by a minute), you build a credit history. This record of good credit usage will help you get other kinds of credit--a car loan, a mortgage, etc.
Yes. there are several ways to buy a home with bad credit. one of them is to homeowner financing, you can find deals on the newspapers, craigslist, and many other sources of information.Also, through an real estate investor, the real estate investor qualifies you as long as you have enough money for the downpayment, expect higher interest rate than the convencional loans, and as long as you pay your new mortgage for some time (about two years), on time you can renegotiate, refinance, through a financial institution other than the investor. either you are ready or not to buy a house the smart thing to do is to fix your Fico score. Learn everything you can about creative financing, real estate vocabulary, contact a real estate agent and ask for advise. Remember the more informed you are, the more likely you will get a better deal.
Paying off collections, especially older collections, will drop your FICO score initially. In the long term, of course, your score will be much better off, and some collection companies may even delete their trade line all together once payment is received, but do not count on this. If you need points in a hurry (applying for a home/car loan), do NOT start paying collections off. You will be doing yourself a grave disservice. Wait until the deal is done and pay these off either at closing or after the transaction is completed.
Finally, one recent 30 day late will drop a FICO score by approx. 50 points - a considerable sum, regardless of account type. Most people make the common mistake of refinancing their mortgage and skipping their last payment, thinking the deal will be done before anyone will notice the delinquency and saving themselves a mortgage payment. THIS IS A MISTAKE! I have seen many people lose their approvals (and thus their loans) because of this, and the results are quite devastating.
Usually every thirty days
I'm not a lawyer and I can't give you anything close to a definitive answer, but I do know that your credit rating will be affected if your spouse includes a joint debt in her bankruptcy. That is, if you owe back taxes or have a joint loan and this debt is included in the filing it will end up included in your credit record as well as hers.AnswerYes, It can affect your spouses credit, I filed chapter 13, My wife cosined a lone for a motorcycle for me. I filed 13, she did not, but somehow it shows up on her creidit report. AnswerThat is because as a co-signor, you are guaranteeing the repayment of the loan. Therefore, when a principal debtor defaults on a loan, the same negative nonpayments are reported to U.S. Credit reporting aggencies against a principal debtor AS WELL AS the 0guarantor (i.e., co-signor of a loan). In other words, DO NOT CO-SIGN A LOAN UNLESS YOU KNOW FOR A FACT YOU CAN REPAY THE ENTIRE AMOUNT YOURSELF WHEN YOUR FRIEND OR LOVED ONE BECOMES A DEADBEAT, OR DO NOT CO-SIGN A LOAN--PERIOD. Answer By MinaziUnless your husband or wife does not involve himself/herself in the matter, He/ She is safe. Your bankruptcy can not affect your spouse in any way. But in community properties, your spouse can be liable with you although your spouse did not even sign any document.
An "investigative consumer report" is a detailed form of a credit report that involves interviews with your neighbors or acquaintances about your lifestyle, character, and reputation.
Investigative consumer reports may be used in connection with insurance and employment applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request certain information about the report from the company you applied to. If your application is rejected, you may get additional information from the credit reporting agency (CRA). However, the CRA does not have to reveal the sources of the information.
Many credit card companies have in their terms that they have the right to take 3 to 4 weeks to credit your account with a refunded amount. So the merchant may have processed the refund but your credit card company will take 3 - 4 weeks to accept it. This is so they can hit you with balance charges.
This a document prepared by the Lead Bank (every bank one bank is given the responsibility of Lead Bank by the RBI for promoting banking services in the district) of the district in coordination with the other banks. The plan contains the business potential (loan and deposits) of the district for next financial year. The planned targets are divided among the banks in the districts to achieved the credit growth to the priority sectors and other sectors in the district.
I agree with this answer but I would also add that the chances of you getting any type of credit in this market are very low. I would advise you skip applying around because you'll lose points with each request. About 50% of credit unions and banks offer secured cards. I would check that route first.
After you have your secured card (s) about 6 months, you will see a rise in your credit score. After 12 months, it will be even better and the lender should review your account and convert to unsecured (if you've handled it well).
The last thing is keep all of your balances under 30% of your credit limit. Within 12 months, you will be sitting very nice.
Unsecured Credit Cards Are Better for Rebuilding from a Bad Credit Rating.
Get an unsecured credit card and charge only small amounts. Pay it off in full each month. Make sure you never go over 30% of your credit limit. For example: with a $300 limit, never create or keep a balance over $90.
Secured credit cards may do less, or nothing, to rebuild your credit. If the card issuer doesn't report your good habits to a credit bureau, the card can't help you build a good credit history.
If they do make reports to a bureau, then they can be an effective way to begin to re-establish a good credit history.
(Your credit history is maintained by reporting agencies i.e. credit bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors.)
Here are some things you may wish to keep in mind:
1. Secured and unsecured credit cards can be used to pay for goods and services. However, a secured card requires you to also open and maintain a savings account as security; an unsecured card does not.
2. The savings balance required for a secured card may range from a few hundred to several thousand dollars.
3. The amount you can charge on your card is a percentage of your deposit, typically 50 to 100 percent.
4. Usually, a bank will pay you interest on your savings deposit. Ask what it is.
5. You may have to pay application and processing fees -- sometimes totaling hundreds of dollars. Before you apply, be sure to ask what the fees are, and which will be refunded if you're denied.
6. You still pay interest on the charge account balance - a higher interest rate than an unsecured card.
7. Typically, a secured card requires an annual fee. Ask whether you can prepay when it is listed on a monthly statement, or whether the fee first goes onto the charge account.
Secured credit cards require a lot from consumers, and many of them are better left alone. Some marketers of secured cards make deceptive advertising claims to entice you to respond to their ads, or leave out important information, such as:
1. If they provided you a phone number with a (900) area code, don't call it! Your phone company is billed the moment you make the call, and you will owe them $2, $50, or Even More!
2. They may charge more, and have more confusing types of fees. For example: an Application fee, and Application Processing fee.
3. Be prepared. Resolve to get every question answered clearly. If there is a non-refundable fee, an unscrupulous salesperson may try to delay or distract you until you have committed, not quite answering certain questions. This way they may earn some commission, even though they know you are likely to be disqualified - or know you are likely to reject the written offer. (Why would you pay to apply if you can see it is a no-go?)
4. Ask about all the eligibility requirements like: Required Income, Age Limits, Residency, or other Disqualifications.
5. What interest does the savings account earn? Is that competitive? Is there any penalty for deposits, and then withdrawals? Are there advantages or penalties for maintaining a higher balance? (Besides having the credit limit stay constant?)
6. Will the card issuer report my good habits to a credit bureau?
7. What charge account balance should I always stay under for the best possible credit score?
Here are more opinions and answers from other FAQ Farmers:
One of the best secured cards out there is from National City Bank. If there is a location near you, just apply at the bank; they will send it in for you. Otherwise, use their website. It may [still] be difficult to find the secured card application on the website. (Ignore the Buxx card - that is not it.) Find their phone number from the website, call the number, and request an application.
Orchard Card is the next best card requiring only $250, but they have some fees. I believe Wells Fargo Bank offers a secured card. I don't know anything about their terms though.
As a person who co-signed an auto loan for someone who consistently made late payments, accrued late fees, and eventually filed bankruptcy . . . I can truly tell you that if You co-sign an auto loan and the person doesn't make the payments it can really screw your credit up. However, if that person is making the payments timely without any problems - then I'd say it won't necessarily hurt your credit. But at the same time it won't necessarily help it either. If I were you I wouldn't do it. Believe me if I could go back - I wouldn't do it. A cosigner is only needed because the primary doesn't have adequate credit rating/history for the needed loan. Hence, the cosigner needs to have credit good enough to qualify for the loan, presumably good, at least betterr than the primary! (Credit scores are not combined or added to get to the needed level). Understand, being a cosigner is essentially the exact same as getting a loan - the cosigner is just as liable as if he got the loan on his own..in fact needs to be more responsible, because he now has to take on the obligations of the primary too, if needed, likely without the control/posession/benefit of what was purchased. A cosigner is only needed because the primary doesn't have adequate credit rating/history for the needed loan. Hence, the cosigner needs to have credit good enough to qualify for the loan, presumably good, at least betterr than the primary! (Credit scores are not combined or added to get to the needed level). Understand, being a cosigner is essentially the exact same as getting a loan - the cosigner is just as liable as if he got the loan on his own..in fact needs to be more responsible, because he now has to take on the obligations of the primary too, if needed, likely without the control/posession/benefit of what was purchased.
Cards are made of several layers of plastic laminated together. The core is commonly made from a plastic resin known as polyvinyl chloride acetate (PVCA). This resin is mixed with opacifying materials, dyes, and plasticizers to give it the proper appearance and consistency. This core material is laminated with thin layers of PVCA or clear plastic materials. These laminates will adhere to the core when applied with pressure and heat.
What is pokediger1s password on roblox?
Asked By Wiki User
What is 8 divided by 2(2 plus 2)?
Asked By Wiki User
What website can you type in a riddle and get the answer?
Asked By Wiki User
Easiest way to lose lower stomach fat?
Asked By Wiki User
How can your landlords report your five years of good rental history to the three national credit bureaus?
Asked By Wiki User
Can you put your insurance company on your credit report?
Asked By Wiki User
How can you apply for a major credit card and not hurt your credit score?
Asked By Wiki User
Is anacott financial a real lending instition?
Asked By Wiki User
Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.