There are a number of tools available to consumers that can be used to remove derogatory credit items from a credit report. One such tool is the goodwill deletion letter. The goodwill deletion letter is a simple request to a creditor such as a credit card company or auto lender or bank that request the creditor remove a negative reference regarding an individual credit history as a matter of good will. Unlike a pay for delete letter, in which the request to delete a derogatory account … [Read more...]
Charge Offs, Avoid This at All Costs
February 7, 2011 By Leave a Comment
Being late paying your bills is not unusual and happens to the best of us. If a situation arises where you suddenly cannot pay your bills – loss of a job or a medical emergency – it is important to understand just what will happen if you find yourself delinquent on a loan or other debt. The last stage of a delinquent debt is generally identified as a charge off and this item, when it is recorded in an individual’s credit report may very well be one of the most damaging items impacting … [Read more...]
What is a Judgment
February 4, 2011 By Leave a Comment
A judgment is the legal document stating the final decision on the outcome of a lawsuit. For many consumer credit cases the judgment involves a debt that is owed. In these cases, the judgment is frequently a monetary award to the plaintiff which is usually a creditor such as a credit card company or bank. The judgment in debt disputes may include a formal document issued by the court ordering the defendant to pay a certain amount of money to the credit card company or bank or whomever who has … [Read more...]
Debt Validations Letters
September 2, 2010 By Leave a Comment
The Fair Debt Collection Practices Act (FDCPA) gives consumers the right to request that a debt be validated which can be requested with a debt validation letter. Debt validation is different from the verification process that can be done through the credit reporting agencies. A request to verify a debt simple means the credit reporting agency requests that the creditor verify their records for accurate information. A debt validation requires that the collection agency prove the debt is … [Read more...]
Pay For Delete Letters to Remove Delinquent Accounts
June 11, 2010 By Leave a Comment
A pay for delete letter is a useful tool to try to eliminate a delinquent credit item from your credit report. A pay for delete letter is a means used to arrange for a settlement on a severely delinquent account in which the sender is requesting that the creditor remove the delinquent record in return for paying the account off. The payoff amount can be the full amount or an offer to settle for a lesser amount. The letter can be used in a variety of situations were the debtor wants to … [Read more...]
Your Credit Score May be Too Low
June 8, 2010 By Leave a Comment
Before the economy took a turn for the worse and credit became harder to obtain, good credit and a good credit score was a fairly well established number or close range of numbers. Now when it comes to the topic of a good credit score, that well defined range of credit scores that creditors and consumers would agree on is elusive. Tougher credit and greater credit awareness has elevated those numbers and what was once a good number is now reduced to a fair or poor credit score. A wide … [Read more...]
Credit Scores and Your Hospital Stay
June 7, 2010 By Leave a Comment
Hospitals have long struggled with handling delinquent medical bills of their patients. In recent years the business of identifying potentially risky customers in advance of rendering medical services has picked up steam. Credit scores have been used by lenders, landlords and insurers to evaluate consumer’s financial risk. Now the business of handling and managing medical bills has moved into the arena of credit scores and credit profiles. The medical credit score is intended to be … [Read more...]
Credit Scores and Collection Accounts
April 24, 2010 By Leave a Comment
Collection accounts will almost always have a significant negative impact on a credit score. A collection account is a listing in a credit report that represents a consumer account that has been assigned to a company to collect on an unpaid debt obligation. If a consumer stops making the contractual payments on an account or debt, the lender or creditor may assign the account or sell the account to a collection agency. This action turns a credit account into a collection account. The … [Read more...]
The Difference Between a Credit Report and Credit Score
March 28, 2010 By Leave a Comment
Credit reports and credit scores are often misunderstood. Understanding these products can be confusing especially when consumers hear about how important credit scores are combined with the intense marketing of credit scores and credit report services. Credit score and credit reports are closely related yet completely different products. A credit report is a list of all of credit information, public record information, and identification information that the credit reporting agencies … [Read more...]
Credit and Credit Scores after Bankruptcy
March 16, 2010 By Leave a Comment
Filing bankruptcy is a series decision that impacts an individual’s credit and credit score for quite some time. Bankruptcy doesn’t have to shut off credit access altogether nor does filing bankruptcy have to be significant detriment for financial success. There are certainly numerous cases of individuals that have filed for bankruptcy and rebounded stronger and gone on to create significant wealth. A bankruptcy is always one of the biggest negative factors that impact a credit … [Read more...]