Your Credit and Ex Spouse
Protect Your Identity!
Nothing can ruin your credit quicker than charges your ex is running up that you are responsible for. For example medical charges! These can add up fast and before you know it, you have a pile of bad debt Click Here! . Take it from me; I’m talking from personal experience.
Make sure you have some sort of document such as a judgment from divorce court stating that your spouse is responsible for his/her own medical and co pays! Don’t forget procedures and treatments that are not covered by your health coverage.
Just today I received three collection letters with charges adding up over $2500! I’m the responsible party on our health coverage. However, per the court she is responsible for her own “out of pocket” expenses. I will be faxing a copy of the court judgment to the collection agency on Monday! So many people, particularly men get burned this way. It can take months or even years to undo the damage of an angry ex.
You don’t have to be a victim! Take charge of your credit and finances and protect yourself. If you are going through a divorce or have already been divorced watch your credit like a hawk. Sometimes it’s not always a stranger who does harm to you. More often than not, it’s someone who is close or in this case, used to be close to you!
Categories: consumer info Tags: bad debt, credit repair, debt, divorce court, finance
Credit Report Myths
The tightening of the credit market, has made high credit scores increasingly important. Your score could determine whether or not you qualify for a home loan.
According to the Federal Trade Commission, your credit report has information that affects whether you can get a loan – and how much you will have to pay to borrow money. You want a copy of your credit report to: make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
It also helps you guard against identity theft. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
There are several myths associated with credit reports. According to Bankrate.com, there are 11 myths that stand out above the rest.
1. Paying my debts will make my credit report instantly pristine
Experts say a credit report is a history of your payments, not a snapshot. Experts say you can’t change the past.
2. Credit counseling always destroys my credit score
Attending a credit counselor’s debt management program is not considered negative in the scoring models.
“We don’t want consumers to consider credit counseling to be detrimental to their FICO scores,” says Craig Watts, public affairs manager at Fair Isaac Corp., the company that developed the FICO score.
Although credit counseling does not by itself influence your credit score, it is apparent on the report that you’ve been through, or are currently in, counseling — and that is something individual lenders may not like. Or they might never know.
3. Canceling credit cards boosts my score
Open accounts spell available, potential debt, so better to close them, runs the legend. But experts agree that most creditors want to see at least two or three pieces of active credit to prove you can manage debt responsibly.
4. Too many inquiries hurt my score
Once upon a time, this statement was true. But get with the times — in this millennium, the credit agencies recognize a shopping mind-set when they see one.
5. Checking my own credit report harms my standing
The reporting agencies distinguish between soft and hard pulls. When Target calls to check before issuing its line of credit, the agencies chalk that up as a hard pull and it counts against your score. Personal requests and credit counselors — if they do it correctly (insist on this as part of your agreement terms) — fall under soft pulls, which do not reflect negatively on the evaluation.
6. Credit scores are locked in for six months
Fair Isaac Corporation’s models are dynamic, meaning that your FICO score changes as soon as data on your credit report change.
7. I don’t need to check my credit report if I pay my bills on time
When the Consumer Federation of America and the National Credit Reporting Association analyzed credit scores in the summer of 2002, they discovered that 78 percent of the files were missing a revolving account in good standing, while 33 percent of files lacked a mortgage account that had never been late. Twenty-nine percent contained conflicting information on how many times the consumer had been 60 days late on payments.
8. All credit reports are the same
Way wrong. These days, most creditors across the country do report their information to all three major agencies: Equifax, Experian and TransUnion. And, because they are separate companies, the speed in which they update records isn’t necessarily equal.
9. Bad news comes off in seven years
Some of it does. Chapter 13 (reorganization of debt) disappears seven years from the filing date. But if you filed Chapter 7 bankruptcy (exoneration of all debt), the window is 10 years from the filing date.
10. I can always pay someone to fix or repair my credit
Yes, you can clear up erroneous information posted to your account, such as a repossessed car that you didn’t purchase in the first place. But if you paid your Sears bill three months late in 2004, that’s a hard fact.
11. A divorce decree automatically severs joint accounts
Experts say the judge may have rubber-stamped your plans to divide credit card, car and house payments, but that carries absolutely no legal weight with the creditors themselves.
Categories: consumer info Tags: credit counselor, credit report, credit score, debt management program, federal trade commission, FICO, identity theft
Understanding Your Credit Score
In a rough and tumble economy, more people are getting bogged down by credit card companies with late or no payments. But how does that affect your credit score, and what does that score mean? A lot of people don’t really know how the credit score works; there are a lot of misconceptions out there.
The following account is why you should monitor your credit score and watch it like a hawk! When the economy eventually turns around your good credit will make all the difference in the world when you are able to make the purchases you want.
“There’s three scores and whenever a lender is looking at your credit score they chose the middle line,” Michelle Symthe says. Michelle Smythe knows little about credit scores. She’s done her research because she’s trying to buy a house. “It’s pretty interesting how you can have great credit and zooming along and one thing happens and boom–it tumbles like 50 points,” Smythe says.
In hard economic times, many credit card holders are tumbling all over the place. “We’re seeing a lot more credit card problems and a lot more credit card issues,” Credit Counselor Jill Perry says.Perry sees numerous people. She says landlords or home mortgage lenders look at your score. The score number is a simple version of your complex financial history. The credit scale ranges from 300 to 850.
“When you think back–who taught you how to manage credit? We don’t teach it in high school and don’t teach it in college. We just throw you out there and expect you to know one of the most important things in the world,” Perry says. There are many myths surrounding credit scores. First, checking your credit score doesn’t make your score go up or down.
Age, income and sex will go on your credit report, but not influence your score. And a higher salary doesn’t necessarily mean a good credit score. Lastly, newlyweds don’t have merging scores. They can have a joint credit report, but separate scores. “Usually when you’re looking at credit scores, the lower the number the worse your credit,” Perry adds. Call the credit score a “scarlet letter” of the financial world, but a low score can scar you from the time being. “Believe it or not, you can repair a score 400 to a 600 in a year or less if you do the right thing,” Perry says. The right thing is taking action.
Categories: consumer info Tags: credit card companies, credit counselor, credit report, credit score
Check Your Credit Report!
Did you know that whenever you apply for a loan your credit report is a deciding factor? The lending institution that you are applying with takes into an account your credit history. This means everything, your payment history, balances, current and even past accounts. The lenders use your credit report to help decide if you are a risk, before giving you any line of credit.
Some people don’t worry when they know that their credit will be checked, but for close to 70% there is a worry. Usually it is because their loan can be possibly declined, due to negative or inaccurate information on their credit report.
Did you know that you are entitled to one free credit report a year? Not everyone takes advantage of this and that\’s a big mistake! Not only is it free to you, and takes just a few minutes there could be information on it that you are unaware of.
So first things first, get a copy of your report. Take the time to review it carefully. If there is anything in it that you believe is misleading or inaccurate you can dispute them. If they find you are correct they will fix the errors for you.
When you change your credit history, this is known as credit repair. You can do this on your own, but I think that it is best to enlist the help of a reputable credit repair company. These are professionals and if you do your research you can find a company that will really work hard on your behalf!
They will begin contacting your creditors if there are any discrepancies. The agency will only work with one creditor at a time. As them to provide you with whatever proof they get, whether it is positive or negative.
Now if the credit bureau(s) are not able to show you that they are correct for anything negative, they will remove it from your report. Also, if they are unable to prove it is correct within a reasonable amount of time, they will remove it from your report.
Be patient, because the credit agencies are busy. It could take some time but it is definitely worth it to you. Here are a few pointers that you can do on your own to help improve your credit. First of all, try to maintain your employment and residence status for a minimum of two years. Next, take a look at your credit card balances. Just because you have extra left on your balance, doesn\’t mean you should charge it all the way up. You never want to get your balances near or over the credit limit.
Make sure you are making minimum monthly payments. This shows that you are consistent and are making an attempt at improving your credit.
Lenders are going to take a look at your credit history, so there is no time like the present to start taking positive steps toward your future.
Take your credit report seriously, because it can help or harm you when applying for loans or lines of credit. It takes a little time, but you can see an improvement if you dispute those misleading or incorrect items. Find a reputable credit repair company and get started today.
Before you know it your credit will shift from bad to good and you will be on your way to getting the low interest rates you really deserve. Not to mention, the ones you can afford!
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