Being buried by credit card debt is overwhelming. However, before taking out a personal loan to pay off credit cards, you need to consider the different advantages and disadvantages. It’s possible that a personal loan could set you on the right path to eliminating credit card debt, but if you aren’t careful, you could create more problems for yourself. The root cause of the high cost of credit card debt is the interest rate. Many cards are characterized by higher interest compared to other financial products such as student loans or mortgages. If you are behind
Many of us believe that it is only through an agency that we could have any hope of repairing our credit. Rest assured that this is not true. It could cost you more money and time to arrange through an agency than it would to just do it yourself. My recommendation, before contacting an agency for assistance is to follow the steps below as you may just be surprised at the results. Repairing your credit takes time, and takes patience. You first need to use our Credit Healing Dispute Letters that you can obtain here www.credithealing.org.
Repairing your credit takes observation on your part. We often get two types of bills in the mail; Bills that are past due and those that are up to date. The fact is ignoring your bills is only delaying, and it does not help repair your credit. If you have current bills and there are no overdue charges be sure to take care of these bills first since by paying this will keep you out of the credit bureaus. It is important that you have a stable financial situation to get out of debt. If your
Your credit report shows your history of using credit, including the accounts you have (both opened and closed), your payment history, credit limits, and amounts owed. Credit Report Guide This easy to read visual road map to understanding your credit report identifies each section of the report with clear, concise definitions to help guide you while reviewing your credit report. Click here to download the Credit Healing Credit Report Guide.
What is a credit score? A credit score summarizes your entire credit report information into one number. This number is calculated by a mathematical equation that evaluates many types of information from your credit report at that particular credit-reporting agency. By comparing this information to the patterns in thousands of past credit reports, scoring identifies your level of credit risk. Your score tells a lender how likely you are to repay a loan, or make credit payments on time. The higher your score is, the better chance you have of getting the credit you apply for.
Your credit report contains details about your financial behavior and identification information. This user-friendly report is sometimes called a credit file or a credit history. Credit Reporting agencies collects and organizes data about your credit history from your creditor’s and public records. They make your credit report available to current and prospective creditors, employers and others as permitted by law, which may speed up your ability to get credit. Getting a copy of your credit report makes it easy for you to understand what lenders see when they check your credit history. How Can I Get
Freezing your credit is the best way to keep criminals from accessing your credit without your consent. If you want to freeze your credit, you’ll need to contact each of the three major credit bureaus individually; each has a slightly different process. Generally, you need to provide your Social Security number, birthdate and other information confirming your identity. Freezing credit and lifting freezes are now free as part of changes to the Dodd-Frank Act signed into law in May 2018. The credit bureaus have until late September to comply. » SIGN UP: Monitor your credit score for free while
If you take a hard look at your situation and analyze your debts carefully, you might just find a solution to knocking down the debts. Debts are bills we owe to creditors, someone or source that has extended us a line of credit believing that we will pay the debt on time. When creditors notice that you are behind on your bills, they often wait a few weeks before notifying collection agencies and reporting you. In this length of time, you can write your creditors and ask for an extension or a reduction on your debt
The Fair Credit Reporting Act was put into law in 1970, which was prior to the computer age, to protect the American people from misinformation that the Credit Reporting Agencies (i.e. Equifax, Trans Union and Experian) reports every day. This law REQUIRES the CRA’s (Credit Reporting Agencies) to have PHYSICAL COPIES of the contract documents we signed with creditors that they are reporting but they DON’T because everything they are reporting is transferred to them from the creditors electronically – not face to face or by mail. This means the CRA’s do not ever review
If you are trying to make ends meet and have past due bills, piling up the last resource is taking out a payday loan to pay your dues. There are many sources available today that offer payday advances. The loans are issued after you show proof of banking account, Social Security, Driver License and Pay stub proofs. This information is used against you; often the lenders will deduct money from your accounts including interest, and principals that apply to each loan you take out. In case you are applying for a payday loan online…Beware…Some of the
WhoWhyPrecedent/LawFine Creditors if they report your credit history inaccuratelyInjury to your credit report and credit scoreFCRA Section 604 (A)(3)$2500 Credit bureaus if they refuse to correct information after being provided proofDefamation, willful injuryFCRA Section 623 CUSHMAN VS. TRANS UNION CORPORATION US Court of Appeals for the Third Circuit Court Case 115 F.3d 220 June 9, 1997, Filed (D.C. No. 95-cv-01743). Extent of damages incurred by the wronged party, as deemed by the courts Credit bureaus if they reinsert a removed item from your credit report without notifying you in writing within 5 business days.Consumer protection afforded
Instructions: Most creditors DO NOT abide by the laws set by the Fair Credit Act and if they do you can still sue them. Some actions of a creditor that substantiate a law suit are: failure to validate a debt; calls you at work or very late at night; erroneous reporting of your credit history; and, refusing to note partial payments on your credit. Most of the time the creditors don’t bother showing up, and why would they? If the debt is for $1,000 and they have to pay an attorney, travel fees and court fees
What is a collection agency? A collection agency is any person or company whose main purpose is the collection of debts for other companies. An attorney who collects a consumer debt for a creditor is considered a collection agency under federal law. Typically, a collection agency will represent several different creditors. Collection agencies are governed by several different laws. Each state has its own laws to govern collection agencies, ranging from requiring state licensing and licensed managers to virtually no state regulation whatsoever. However, every collection agency is governed by a federal law called the Fair
Definitions of common terms and phrase used throughout the your credit reports and credit scores. A account – An account represents a relationship between a company (the account owner) and consumer, where the consumer purchases a product or service in such a way that represents the transfer of money over time. account number – A reference number assigned to accounts, by the creditor or collection agency, to uniquely identify a consumer as the owner of that account. account reviews – Inquiries made into a consumer’s credit history by creditors, with whom the consumer has a current relationship. These inquiries are not included