Question

In 2000 I needed to file a business bankruptcy but since I was self  employeed I had to file a personal bankruptcy.  Since it has been  7-years what can I do or can the bad ding on my credit be taken off?  Thank you in advance for your responce.

J.R. H.

Answer

J.R.H.

According to the Fair Credit Reporting Act, a court record can stay on your credit bureau report for UP TO 10 years.  In the case of a chapter 7 bankruptcy, the 10 year time frame would begin at your discharge date.

So, unfortunately, you still have time until this is removed on its own.

If you feel anything on your report is misleading, unverifiable, inaccurate or obsolete, you have the right to dispute those items and they could be removed prior to the maximum time outlined by the Federal Statue.

In addition, many creditors look at the last two years of credit history.  So it is important to pay your current bills on time, keep you balances low, keep your inquiries low and have a healthy mixture of credit.

Hope this helps.

Candice

Question

i would like a credit card but right this moment i dont have no credit in my name.how can i get one of them so i can be better on it.

Megan J.

Answer

Megan

Building your credit score can take some time and effort.  But, it is important to do so and to do it correctly.

You may want to start out applying for a secured credit card.  This is a card that you put a deposit on and the line of credit either equals or exceeds the amount of your deposit.  The trick here is to make sure they report you as an unsecured credit card.  You may also want to consider applying for a gas card or an in store retail card.  These are usually easier to be approved for.

Always pay your bills on time and use your credit wisely, keep you balances low and your credit score should climb.

You can go here to find a credit card  http://www.creditrepair.com/credit-cards/

Also, read this article http://www.creditrepair.com/debt/credit-card-debt/using-credit-cards-wisely.htmlThanks,
Candice

Question

I am in the procross of trying to buy me my first home but i have a credit score of 517. I know that my score si low but do you think that i may be able to get a mortgage with a score that low. I also do not have the money to put down for a down payment so do you think that i will be able to get my first home with what i just told you.

Daniel M.

Answer

Daniel

Thanks for your question.  Unfortunately with the market change, a credit score of 517 will not be high enough to get a new mortgage loan. Now a days, you will need a 680 credit score or higher with the best rates going to those with a 720 credit score or higher.

There is good news though…you can become a home owner!

It will take time and a plan, but you can do it!

Some things to consider…first, start repairing your credit.  There are many ways to do this. 

1)    Challenge all questionable negative listings

2)    Pay off all collections, judgments and liens you may have

3)    Pay down your revolving accounts below 30% of their balance

4)    Start building positive credit with a gas credit card or an in store credit card and never be late on these!

In addition, it will take 20-25% of the purchase price of your new home as a down payment.  You may want to consider setting up a separate bank account and put as much as you can into that account each paycheck.  You may also want to ask family for some assistance.  There are also Down Payment Assistance programs out there.

Let us know if we can help you further.  Call us or fill out one of our forms on CreditRepair.com and we will match you to the most reputable partners in the country that may help you achieve your goals!

Thanks,

Candice

Question

how much does it cost a month to pay a credit counselor to dispute my accounts on my credit report

 James T.

Answer

James

The cost of credit repair services varies from company to company.  They range from $39 - $120 a month.  It is important to know that according to the Credit Repair Organizations Act which regulates companies that provide credit repair services, it is unlawful to collect fees BEFORE performing the work.

With the down turn in the economy, there are more and more credit repair “shops” popping up to provide these services.

Creditrepair.com will provide you with a free referral to the most reputable credit repair company based on your individual situation.  Give us a call @ 800-445-8540.

Thanks

Candice

Question

I am overwhelmed in credit card debt and would like to try the debt settlement.  A company called Zwicker and Associates has already taken over my Discover card.  What can they do to me?  Is debt settlement a good idea?

Julianna H.

Answer

Julianna-

Debt settlement is usually a good program for old unpaid collections, charge offs, judgments or tax liens.

Usually, in the cases I just listed, you can get a 40 to 60% reduction in the balance that you owe.

There a few pitfalls to be aware off.

1)      The remaining balance that you do not pay on your settlement may be considered income by the IRS and is taxable as ordinary income.

2)      Your credit report will be updated as a “settlement for less than full balance” which can be a red flag for future creditors that you may apply for new credit with.

3)      Lastly, some settlement companies will take monthly payments from you until you have enough to equal the settlement amount.  Be aware that these monthly payments are going to the settlement company and not your creditors.  This means that the creditors still have the right to attempt to collect the debt including garnishing your wages, getting a judgment or seizing your assets.

Let us know if we can be of any assistance finding a reputable partner for you.

Candice

Question

How can I increase my credit score quickly?

Mary J.

Answer

Hi Mary

Good news…there are many ways to improve your credit and there are things you can do today to see some improvement quickly.

1)    You have the right to dispute any negative item that you question as being accurate, obsolete, unverifiable or misleading.  Audit your credit report and challenge any questionable negative item to make your report as accurate as possible.

2)    By off or pay down your balances.  If you have old collections, charge offs, judgments or tax liens, you should resolve these and get these satisfied.  Also, any revolving accounts need to be paid on time and keep the balances low, usually below 30% of your available credit.

3)    Build positive credit.  You should have a good mixture of revolving and installment credit on your credit reports.  And, continue to pay on time!

4)    Lastly, check your credit often.  Make sure there are no mistakes and make sure no one is pulling your credit.  Inquiries can lower your score.

If you would like a customized personalized solution to increasing your credit score, please don’t hesitate to call us.

Thanks,

Candice

Question

Hi Candice I’m having trouble trying to initiate a credit dispute with Equifax.  Everytime I give them the basic info that they want,  I’m told the can’t proceed.  Any suggestions?  Also could you recommend a web site for a professional credit repair compnany.  Thank you.

David W.

Answer

Hi David-

The Fair Credit Reporting Act allows the credit bureaus the opportunity not to research a dispute request if they deem the dispute to be FRIVOULOS.  Many times the bureaus will respond to a dispute asking for more information in an effort to see if the dispute is legit or frivolous.

The best disputes are in writing, they clearly state the account you are disputing and why you believe it to be inaccurate, unverifiable, incomplete, obsolete or misleading.  They also have a copy of the evidence backing up your belief.  For instance, if you are disputing a late payment, include a copy of the cancelled check that shows you paid on time.

It is also recommended that you send your disputes by certified mail.  Document all of your communications with the credit bureaus.

Creditrepair.com serves to match consumers to the most reputable companies in the credit report repair, debt, mortgage, auto and foreclosure industries.  Give us a call @ 800-445-8540 and we can match your personalized situation with the best partner available.

Thanks

Candice