Category Archives: Credit Repair

How Much Does A Loan Modification Affect Your Credit Score?

How Much Does A Loan Modification Affect Your Credit Score

If you fall behind on your mortgage, you have options, but you must be proactive. One of the best ways to get back on track with your mortgage is loan modification The biggest negative effect to your credit from a modification depends upon whether your lender originates a new loan. If your loan modification result in a new loan and part of the original loan principal was forgiven, your mortgage lender may report the old loan as charged off. This can have a very negative effect on your credit score. Most loans, however, do not result in a new loan and simply modify the terms of the original loan. For those loans, only the missed mortgage payments prior to modification will negatively affect your credit. Be sure to ask your lender prior to accepting a modification exactly how the modification will be reported to the credit bureaus.

Modification hurts your credit much less than missed payments
Month after month of missed mortgage payments will badly damage your credit. The negative credit impact of a mortgage modification pales in comparison to the impact of missed monthly payments reported by your lender. Missed payments not only indicate that the borrower may no longer be able to afford the property. Missed payments are also accumulative, meaning the past due balance grows monthly, not to mention fees and interest. Missed mortgage payments will damage your credit much more than loan modification.

Modification is almost always preferable to foreclosure

Foreclosure will very negatively impact your credit score. Foreclosure also stays on your credit report for seven years. Over time, the effects of a foreclosure will fade, but the foreclosure itself is considered a very negative credit event. Only under specific circumstances should you simply allow a property to go to foreclosure auction. Instead, contact an experienced foreclosure defense attorney to discuss your options.

The Home Affordable Modification Program

Loan modification through government programs, such as the Home Affordable Modification Program (HAMP), may have no impact at all. Such programs include loan reporting requirements that result in the mortgage continuing to be reported as current and paid in full, if the requirements of the program are met by the homeowner.

Such programs are intended for people struggling with serious debt problems. In order to qualify, you may already have to have serious debt repayment difficulties. If so, you shouldn’t be concerned about your credit scores because they are already probably poor and you aren’t in a financial position to take on new debt.

Loan Modification and Debt Settlement

Other programs may be referred to as “loan modification” but could hurt your credit scores because they are actually debt settlement. Intentionally allowing a mortgage or any debt to become delinquent will result in the account payments being shown as late in your credit history, and your credit scores will suffer. If you negotiate a lower interest rate or reduced repayment, the account might also be reported as settled or “paid for less than originally agreed, which also will hurt your credit scores. Before entering into a “loan modification” be certain to carefully review the contract terms and understand how your payment history will be reported. Anything other than paid on time and in full will have a negative impact. Credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower’s FICO score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person’s overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer’s credit report could cause the consumer’s FICO score to decrease or it could have little to no impact on the score. Back when lenders started to offer loan modifications, lenders said if you made three temporary loan modification payments, the modification would become permanent. However, lenders never clearly disclosed (and often denied) to their borrowers that the loan modification process allowed the bank to report the lower temporary loan payments as a negative piece of information on their credit history. On the other hand, you appear to have received a permanent loan modification. While you might not feel that the 5 percent rate is great, you got something that most other borrowers that applied for a loan modification did not. Most other borrowers that applied and paid temporary lower payments ended up without a permanent loan modification and with a credit history far worse than when they first met with their lenders. You should look at your credit history and see if there is anything else that might be hurting your credit score. Go to www.AnnualCreditReport.com and obtain at least one credit history available to you free of charge. The three largest credit reporting bureaus (Experian, Transunion, and Equifax) manage this site and by law, they must each provide you with a free copy of your credit history, once a year.

While your credit history is free, getting a copy of your credit score will cost you around $10 – but we recommend you do it so you can see a rough approximation of what your lender sees. Once you receive your credit history, you can review it for inconsistencies, mistakes and start to understand whether there is anything you can do other than allowing time to pass that will improve it. If you clean up your credit history, your credit score will improve. Once your credit score is over 720, you should be able to refinance your loan with a different lender. The real issue is whether you have any equity in your home. You could have received the loan modification from your lender even if you had little or no equity in your home. That means that your lender modified your loan even if the amount you owed on your home exceeded the value of the home. If you wanted to refinance today and your home’s value was still lower than what you owe the lender, you wouldn’t be able to get a new loan. In fact, the only way you’ll be able to get a new loan is to wait for your home’s value to go way up or sell the home in a short sale and then buy a new home several years down the road.

Refinancing and loan modifications can affect your FICO score in a few areas. How much depends on whether it’s reported to the credit bureaus as the same loan with changes or as an entirely new loan. If it’s reported as the same loan with changes, three pieces of information associated with the loan modification may affect your score: the credit inquiry, changes to the loan balance, and changes to the terms of that loan. Overall, the impact of these changes on your FICO score should be minimal. If it’s reported as a new loan, your score could still be affected by the inquiry, balance, and terms of the loan, along with the additional impact of a new “open date.” A new or recent open date typically indicates that it is a new credit obligation and, as a result, can impact the score more than if the terms of the existing loan are simply changed. If you’re struggling to keep up with your mortgage payments or you’ve already fallen way behind, a mortgage modification can help you save your home and lighten your financial load. Modifications are offered by both government programs and private lenders. These loan alterations are designed to lower your monthly payments. But if you have your eye on your credit score and are wavering about going forward with a modification, there are a few key factors to keep in mind. Depending on you and the program you choose, the modification may affect your credit scores.

Government Modification Programs

If you have a government-backed loan or a government-insured loan through departments you may qualify for the Home Affordable Modification Program (HAMP). HAMP is a government-sponsored program to help homeowners modify their mortgages and make monthly payments more affordable. According to Experian, these programs have requirements that state a mortgage must be reported as paid in full, so just going through HAMP alone won’t have a negative impact on your credit score.

Lender Modification Programs

If you don’t qualify for HAMP or choose to go through your lender for a mortgage modification, the story might be different. Some lenders may report a modification as a debt settlement, which will have an adverse impact on your credit score. If your credit score is on the low side and you’re already behind on mortgage payments, the impact may be minimal. However, if you’ve maintained a high credit score, a ding from a reported debt settlement may have a larger impact on your credit score. To make sure your credit score is protected, ask your lender how they plan to report the modification to credit bureaus before you finalize the deal.

After Modification

Once your modification is in place, you can use it to improve your credit score. Your lender will report your payment history to the credit bureaus, and if you pay on time each month your credit score will gradually increase as you build up a solid payment history. On the flip side, if you fall behind on your payments under modification, the lender will report this as well. Late payments can take a bite out of your credit score especially if they’re a recurring issue. If you can’t keep up with your mortgage payments and don’t use a mortgage modification, your only alternatives may be a short sale or a foreclosure. A foreclosure will have an enormous impact on your credit score and a lasting impact on future homeownership. It may be a year or more before you can qualify for a loan again. A short sale doesn’t affect your credit score as much as a foreclosure, but it will still lower your score and stay on your credit rating for up to seven years.

Mortgage modification agreements revise the terms of home mortgages. They can be used for lowering mortgage rates, extending the repayment term of mortgage loans and adding past due payment amounts to a mortgage loan. A mortgage modification itself does not affect credit, but having past-due payments at the time of a modification can lower homeowners’ credit scores.

Reducing an Interest Rate Using a Modification Agreement

Mortgage companies use modification agreements for lowering mortgage interest rates. This lowers homeowners’ monthly mortgage payments and can help financially challenged homeowners keep their homes. Modifications are also used for lowering interest rates for homes that have lost value and do not qualify for traditional refinancing. Modifying mortgage loans can motivate homeowners to stay in homes an inability to refinance to a lower mortgage rate may otherwise cause them to abandon. A modification may incorporate additional adjustments to the terms of a mortgage loan according to individual homeowner situations. A modification agreement can lower the mortgage rate and extend the repayment term of a mortgage, or it may change the type of loan from an adjustable to fixed rate mortgage.

Extending Repayment Term of a Mortgage Loan

Mortgage lenders may extend the term of a mortgage loan for lowering payments and assisting homeowners with bringing their mortgage payments current. A 30-year mortgage requires 360 monthly payments. A borrower whose income drops after several years of owning her home and making mortgage payments may ask her mortgage company for a modification that includes lowering her mortgage rate and extending the term of her mortgage to the original 360 months. In cases involving adding delinquent mortgage payments to the mortgage balance, the mortgage term is typically extended by the number of monthly payments added to the mortgage balance.

Adding Past Due Payments to a Mortgage Balance

Mortgage modifications revise the terms of home mortgage documents. They can be used for lowering mortgage rates, extending the repayment terms of mortgage loans and adding past due payment amounts to a mortgage loan. When past-due payment amounts are added to the balance of a mortgage loan, the payment due date is also adjusted and shown in the modification agreement. If past due payments for September, October and November payments are added to the mortgage balance, and a loan modification is effective Dec. 1, the payment due date would be adjusted to Dec. 1, and the mortgage term would be extended by at least three months to keep an increased mortgage balance from causing the monthly payment to rise. Modifying a delinquent mortgage to a current status will show the delinquent payments as current, but does not erase initial reporting of the delinquency on credit reports. Mortgage companies approve modifications based on verifying homeowner hardship and homeowner ability to repay the mortgage according to its modified terms. Supplying all information and documentation requested by your mortgage lender speeds up the modification approval process. Check on the status of your modification request weekly. Your mortgage servicing company may have to get approval of your mortgage modification from the owner of your mortgage or a mortgage insurance company.

A load modification is the result of a negotiation between a borrower and lender, typically over a large loan like a mortgage. Modifications help both sides compromise when the borrower cannot make the current monthly payments. This can save the borrower from foreclosure and credit damage, but the modification may also create tax complications.

Loan Modification Attorney Free Consultation

When you need a loan modification in utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
itemprop=”addressLocality”>West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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How Does Credit Repair Work?

How Does Credit Repair Work

Bad credit spells tough life, period. And that is probably why you want to know how to regain a good credit standing. Whether you are already in bad credit, or you see yourself heading there, or even if you have no credit history at all, the information I’m just about to share will give you much insight on how credit repair works.

Before delving into the core of the matter, allow me to first show you how life gets tough with bad credit.

Negative effects of bad credit

Bad credit has far reaching consequences. It is just too bad that people find themselves in bad credit. If it were avoidable, well and good, nobody would be in such a mess. But life at times gets to a point you have to default a loan. Life pushes you to the corner and you have to skip that mortgage payment, not just for a month, but for 2 or even 10.

So you finally end up with this unimaginable credit score. You ask, what are the consequences of a bad credit score?

Let us look at the 5 most alarming ones.

1.   You will find it very difficult to start your own business

Setting up your own business requires some form of credit, unless you are overly financially endowed. Access to credit facilities also helps when you run into cash flow difficulties in the course of running the business. Bad credit denies you the much needed access to such credit facilities

2.  Limited access to utilities

The firms that deal with provision of utilities such as cable internet, electricity and phone network normally check your credit standing when you declare an intent to sign up for their services. Bad credit will force them to require you to pay huge deposits.

3.  High interest rates on credits

The financial society has already lost some trust in you. If financiers and suppliers decide to give you any credit, they will do so at higher interest rates than they offer to others. Sounds discriminatory, but that is the truth of the matter.

4.  Difficulties in securing rental houses

What Landlord would rent his apartment to you if he knows for sure you are a defaulter? Your guess is true – few. The real estate sector involves humongous investments and no home owner is ready to lose even a cent.

5.  No employment

Many employers will shy away from bringing on board a marked defaulter. They argue that your bad credit standing may negatively affect your job performance.  

This said, the aim of every individual in such a financial state should be to get out of the predicament and return to normal life. You may employ a variety of strategies. These include:

  1. Seeking the services of a credit repair company
  2. Do-It yourself credit repair
  3. Changing your spending habits
  4. Long Term strategy

Let me elaborate these strategies one by one:

Seeking services of a credit repair company

When in bad credit, you can contact credit repair companies to help you gey out of the mess. With a good search, you can find reputable companies that have mastered the art of improving people’s credit scores. How is this possible?

They do this in 3 simple steps:

  1. They first request for your credit report from the relevant credit bureaus, including Equifax, Experian and TransUnion
  2. They then identify negative items on your credit report which they can request to be removed. Your credit standing improves when these items are kicked out of the report
  3. The credit repair companies finally employ a number of strategies to see to it that the negative items on the report are removed. If negotiations fail, they move on to file a dispute against the creditors on the negative items in the report

Such companies have helped many individuals get out of their debts. The advice they give is also worth the try. Of course they require some monthly payment for you to enjoy their services. As an individual, you may not have the know how or the confidence to dispute certain items. Time may also be a constraint on your side. Think of moving from office to office to get all these issues dealt with. 

So go ahead and hire their services if you are such kind of a person. I am saying so because in the next strategy, I will disclose how you can personally do what these credit repair companies do.

When hiring the credit repair companies, make sure to closely examine the list of services they claim to offer. You will come across terms such as:

  • Bureau challenges
  • Creditor interventions
  • TransUnion alerts
  • InquiryAssist
  • Report watch
  • Cease & Desist Letters
  • Score Analysis
  • Credit rebuilding
  • Score assistance
  • Personal dispute managers
  • Personal finance and budgeting tools
  • Etc.

We will not get into the finer details of these services. We now move to the do-it-yourself strategy:

Do-it-yourself credit repair

The good news with bad credit is that you can handle it all on your own. Just depends on how handy and aggressive you are.

To do this, follow the 2 steps outlined below.

1.  Obtain your credit reports

This is the first thing you ought to do in your journey to recovery bad credit. You will need the full credit reports from the three credit bureaus – TransUnion, Experian and Equifax.

The AnnualCreditReport website offers the reports for free, but just once a year.

If you so wish, you may call the Telephone line 1-877-322-8228 to make inquiries.

There are also some apps on Google Playstore which are able to track your credit score. Such include the Credit Karma, CreditWise, myFICO, Experian, and Credit Sesame, among many others.

A credit score of 800 is very good. Anything above 700 is considered good. In case you fall below the 700 mark, your chances of qualifying for loans decreases. A score of below 600 is definitely bad. The worst score you can have is 300.

2.  Identify the errors in the credit report and dispute them

Take time to scrutinize your credit reports for errors. The reports are certainly not error proof – it humans who compile them, and human is to err.

Start with your identity information, including your name, address and social security number.

Move on to your list of credit cards and ensure that all items recorded therein are captured correctly. Highlight all errors as you come across them. Remember you need to have solid proof that the such and such entries are a mistake. This will require the support of bank statements or other utility bills.

You can now use the above evidence to file a dispute with the credit bureaus.

Change your spending habits

This is a long journey you should embark on after the negative items on your credit report are resolved. The three sure ways of improving your credit scores are:

  1. Pay all your bills on time
  2. Pay all credit card debts
  3. Keep away from credit

To achieve the above three, you need to purposefully change your spending habits. It all starts with a budget! Yes!

Get to know your monthly income after after tax deductions. You may wish to refer to this as the net pay. Now make all deductions made on your income on items such rent, mortgage, car loans, health insurance, life assurance, etc.

What do you remain with? How much can you spare for groceries? How much are you willing and able to dedicate to entertainment? What of gym membership, trips, investment?

Write out all this stuff on paper and purpose to follow it to the letter. Always resist impulse buying whenever you are out in full display of hundreds of attractive merchandise.

In addition to disciplined spending, make sure you pay all bills on time. Every bill on your table definitely has a deadline. Whether it means setting reminders or physically displaying the pending bills on notices, do all you can to meet the deadlines.

This requires some bit of planning on your end, so that you have the funds available every time you need to pay out some bill.

Another thing to look at is the credit card balances. What is your outstanding debt? How much can you pay off every month? Focus on clearing all debts, even if it is after 1 year.

In this change-of-life moment, restrain yourself from applying for new credit. I understand how tempting it is especially when the offer comes with discounts n purchases. Such may be beneficial, but in times of debt, they are a trap to drive you further into credit worthlessness.

As you work on the above, keep checking your credit score on any of the apps I suggested above. I guess you will notice the figure rising bit by bit. Be patient in this process – it is never an overnight thing.

At this juncture, let us look at the cost implications of credit repair.

How much does credit repair cost?

If you choose to go the credit repair company way, be ready to spend between and 0, or even higher, every month as service fees. Most companies offer packages in which you pay a specified monthly figure until your credit standing improves to the level you wished. 

As usual, the more costly the package, the more the services you will be offered. Always compare and contrast different packages and companies to get the best bargain for your money. It is funny how you have to spend more money to get out of debts.

And this leads us to the scam question: Are credit repair companies a scam?

No and Yes.

Of course, as in any other industry, we have the genuine ones, and the scammers. The genuine credit repair companies will diligently walk you through the steps of improving your credit. I cannot deny that scammers have infiltrated this market.

Such are the companies that will jog your mind with technical lies just so to ensure you pay the monthly fee for the longest time possible.

Others will guarantee you positive results, whereas we clearly know that credit repair is a trial and error undertaking, especially on the section of removing bad items from the credit report. Yes you venture into it but you are never sure of the outcome.

Do your homework well. Search diligently for the best company whose rates you can afford. Read tons of reviews on the shortlisted companies and have the general feeling of the customer experiences with those companies.

If you choose to go the do-it-yourself way, you have no professional fees to pay. Just remember that you may have to travel and pitch camp from office to office as you seek to sort things out.

Let us now wind up this discussion with a look at some of the misconceptions of credit repair.

Misconceptions of credit repair

1.  Only open accounts are included in a person’s credit report

This rumour has found place in many a people’s hearts. So they take to closing their credit accounts with the hope that the bad elements in that account will be stripped from the overall report.

In many cases, closing such a stubborn account ends up further hurting your crdit score. What more, the bad details will remain on your report, and it may be hard to follow up on them because you no longer have access to the account.

If you have behaved well with a given account for some good amount of time, closing it in the wake of bad credit is not sensible enough. Think of how you can improve your credit score through working on the accounts

2.  Opening many lines of credit will improve your credit score

Let us get this right. Your ability to operate multiple accounts and handle multiple bills does not translate to a higher credit score. This may in fact turn out risky and lower your credit score.

3.  Paying off loans earlier than the deadline will improve your credit standing

This is not entirely true. The credit reporting system has no reward for prepayment of loans. They just consider the payment deadline. Quite interesting!

Endeavor to have an excellent credit standing for your own good.

Credit Repair Attorney Free Consultation

When you need legal help to repair your credit, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Can Credit Repair Remove Bankruptcies?

Can Credit Repair Remove Bankruptcies

It is so unfortunate that over half a million Americans declare bankruptcy every year. In case you are one of them, you are probably wondering how soon the bankruptcy will disappear from your credit report. Not only that but also thoughts such as, “Can credit repair remove bankruptcies”

It is sure tough to get into bankruptcy. Let me first highlight the joys that bankruptcy can rob you of.

Consequences of bankruptcy

Maybe a bankruptcy advocate told you that filing for bankruptcy is the best way out of your debt problems. It is true that bankruptcy can give you some slight sigh of relief during a financial crisis. You should, however, be aware of the following 5 major consequences of filing a bankruptcy.

1.  Your credit report will for many years show the bankruptcy

You may think that being excused from your debts is the best solution to hard financial times. Once you file for bankruptcy, you remain marked for the next seven to ten years. Then every person or institution you turn to for credit sees that you were bankrupt a year or two back. Are they likely to trust you again?

2.  The whole world, or at least America, will know you are bankrupt

Bankruptcy, being a legal procedure, becomes a public record once you file it. The public can have access to your bankruptcy details whenever they want to. This is certainly a stain on your name.

3.  Not all debts are done away with after you file for bankruptcy

By declaring yourself bankrupt, you can get rid of unpaid income tax bills that are over 3 years old, and a number of unsecured debts like medical bills and credit card balances.  You will still be required to pay for taxes under 3 years old. Likewise, your student loans will not be erased.

4.  Be ready to spend more cash

Funny this is, but that’s how pinching bankruptcy can be. You normally have to hire a bankruptcy lawyer, whose fees are normally high. Depending on whether you are filing for chapter 7 bankruptcy or Chapter 13, you can spend anything between 0 and $3,200. Such amount of money is certainly not readily available to most of the average income earners.

5.  Finding a home loan will be very difficult

Any bank or financial institution you approach for some mortgage or the like after being declared bankrupt will really scrutinize your application. And chances are very high that you will be denied. Remember they are in business for profit and would not want to incur any loss.

You have nevertheless found yourself bankrupt. Your credit score is really low because of this. It’s never too late. Let us see how you can remove bankruptcy from your credit score.

Is it possible to remove bankruptcy from your credit report

That is the desire of every bankrupt individual who wants to regain creditworthiness. As earlier mentioned, the bankruptcy will show in your credit report for up 10 years. Is there a way you can remove it before such a long period elapses?

To be frank, it is very difficult to remove bankruptcies before they naturally expire. Good news is that it is still possible, provided you are ready to put in the required effort. Let us dissect this matter further to get a good understanding.

How long does a bankruptcy stay on your credit report

To answer this question, you first need to know the two types of bankruptcies. The two are:

Starting with Chapter 7, these are more common than the second type. They make up close to 70% of the cases each year.  Chapter 7 bankruptcies spell out this: Liquidate all my qualifying assets, pay you whatever I can afford, do away with the remaining debt.

These bankruptcies are do not include long term payment arrangements, the reason why they are more popular.

On the contrary, Chapter 13 bankruptcies spell out this: Given more time, I will pay all my debts, provided I’ll not follow the originally agreed upon timelines. A new payment plan is drafted and an assigned trustee oversees it.

The Chapter 13 bankruptcies remain for 7 years on your credit report, whereas Chapter 7 bankruptcies stay for 10 years.  

We now move to these two variations – fraudulent and legitimate bankruptcy

The case of fraudulent bankruptcy

Fraudulent bankruptcy may result from acts such as identity theft or clerical error. It may be some cyber criminals or fraudsters impersonated you and got you into this trouble without your knowledge. First, use the PACER system to access your bankruptcy records.

Once you detect such erroneous inclusions in your credit report, move on to file a dispute with the respective credit bureaus. The first step is to ask the court to write a statement verifying that you have no bankruptcy declared.

Of course, be ready to provide any identification documents and other related documents they will require of you. Once you resolve the issue with the court, write a dispute letter to each of the 3 credit bureaus. 

In case the credit bureaus find out your name was included erroneously, they will proceed to make changes on your credit report. This normally takes a couple of weeks. Exercise some bit of patience.

This whole process may prove too tedious for some individuals. Don’t fret – the credit repair companies are there for you. A carefully chosen company will be able to get out the bankruptcy record from your credit report without you incurring uncalled for expenses.

The case of legitimate bankruptcy

“What if I am legitimately bankrupt?” You ask.

The law still gives you the right to dispute any entry on your credit report. Take time to go through the credit report. Be on the lookout for any errors. The more you detect the better. These will serve as evidence and raise the chance of ridding your credit report of bankruptcies.

What if you do not find any error? I have this to tell you – it pays to try. Send a request letter requiring the credit bureaus to verify whether the inclusion of bankruptcy in your credit report is correct.

Wait for their response. If luck is not on your side, the credit bureau will say they obtained the information from the court. End of the tunnel? No!

Take your battle to the court. Your objective here is to unearth some loophole in the process so that the credit report is stripped of the bankruptcy element.  

Again, let me point out that you are simply chancing. Not all victims have succeeded to remove bankruptcy from their credit reports. Who said you cannot be the 1 % of the successful ones? Trying is definitely better than sitting down and staring at a low credit score for 10 years.

The credit bureaus are definitely not on your side. I am pretty sure you have visited some of their online platforms. From their perspective, it is next to impossible to remove bankruptcy from your credit report.

I must disclose here that they harbor some ulterior motives. This they do under the cover of shielding you from scammers – that is the credit repair companies. Do not buy their fallacies. It is definitely possible.

In the course of all this, try your best to remain calm in your wording in whatever letter you send. Hardship tends to work you up emotionally. Just restrain yourself from releasing the pain on the wrong person.

A frivolous dispute is a good candidate for shut down by the credit bureaus. They will use your harsh words against you, so play it safe.

Rebuilding credit after bankruptcy

We all learn from mistakes. Do not see your bankrupt state as the end of things. The first thing you would want to do is check your personal finance habits to ensure you do not return to the same spot again.

Allow me to inject this here – quite a lot of people have not yet mustered their spending habits. You will be shocked to realize that the majority of those declared bankrupt are high-income earners. But how did they get into such a financial mess? Failure to plan.

In other words, they planned to fail.

Every individual ought to review their income and use this to plan their spending. Discipline is the key thing when speaking about finances. That simply translates to restraining yourself from purchasing any good or service that stretches your finances, while you could have done without it.

After bankruptcy, purpose to pay all your bills on time. This will, in the long run, reflect in your credit score. Set up funds in good time way before the payment deadlines reach.

Something else I will advise you to do is avoid by all means getting into more debt. Your previous debt might have been scraped off, but racking up additional debt will negatively impact your credit score.

As you seek to repair credit, do not hire any professional services that are out of your reach. Always do a thorough background search of the most affordable, reliable and effective lawyer or credit repair company. Restrain yourself from emotionally subscribing to the most expensive service in a bid to get out of the mess. You will most certainly plunge yourself further into huge debts.

It is my sincere wish that your current bankrupt state will coerce you into soul-searching. Where did I go wrong? What eats up the biggest chunk of my income? Is it worthwhile to spend money on. What if I never spent on such and such a good or service? Would my life still be comfortable? Is it better to stay without that equipment and be stress-free or have that machine and drown in stress?

You will certainly come up with tangible answers which will lead you to a wise approach regarding your expenditure.

How to get credit after bankruptcy

Life must definitely move on. Whether bankrupt or not, you must earn your daily bread. This is sometimes difficult without some loan or credit facility of some kind, to start up that small business and to keep you in the same.

Is there hope?

Yes, for sure. Consider getting a secured loan. The bank, or whatever the lending institution, will require you to make some deposit into a savings account. If you pay them on time, they will forward the positive reports to the credit bureaus, and this is set to improve your credit score over time.

Over time, they will even allow you to take a car loan or a mortgage. As long as you honor your promise of payment, all will work towards your good.

Another possibility after bankruptcy is the secured credit card. With this type of credit card, you are required to pay some upfront fee. You will not be allowed to spend more than the amount you deposited.

The downside of this type of credit card is the high interest rates that come with it. I would therefore advise you to simply use it for a short period as you work on your credit score. Once you attain the required score, start pursuing an unsecured card.

All these good deeds should be reported to the three credit bureaus. The good thing is that they reward without fail.

To wind this up, I will again speak of hope. Bankruptcy can be really devastating. Even so, it is not the end of your financial mastery. The best attitude to develop at such times is the I can attitude. Look at it as the turning of a new page in the story of your life.

Look back to your history and analyze what really went wrong. Let the discovery be a stepping stone to future financial endeavors.

In the case that credit repair does not remove bankruptcy, tell yourself that 7 years is but a short period of time. Hustle through the hard years and you will soon be on your feet again.

Credit Repair Lawyer Free Consultation

When you need legal help with Credit Repair, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Can Credit Repair Remove Late Payments?

Can Credit Repair Remove Late Payments

In today’s world, having a negative credit report makes it challenging to carry on with your daily endeavors. Multiple organizations utilize your credit information as a prerequisite for engaging in any form of dealings with you or whether you are eligible to purchase their services.

In order to wade through the financial waters smoothly, the burden to uphold a positive credit listing is always weighing heavily on most, if not all of us.

The downside of having a negative credit includes the inability to request for loans. Most creditors will verify one’s credit history before they issue out loans. Another disadvantage is that you may be unable to acquire assets or even rent out property.

As such, people are always on the quest to improve their negative credit history. This is where credit repair comes in.

What Is Credit Repair?

Credit repair is a process which enhances your credit report. It is advisable to seek assistance from an expert when you want to reverse your credit report. You can outsource such services, but at a fee. Needless to say, other people prefer to do it on their own.

Credit repair is considered an ongoing process and consists of various steps. These include:

  • Evaluation of your credit score.
  • Handling any financial disputes which may have caused you to have a negative credit
  • Coming up with counteractive strategies which will propel you towards a positive credit score. For example, paying off any lingering debts, developing sensible spending habits which will ensure that your credit card balance is never on the negative side as well as avoiding late payments.

Late Payments? What Does That Mean?

Late payments serve as one of the major causes for having a negative credit. This payment can come in form of the amount imposed on you by your credit card provider whenever you fail to have the minimum amount in your card on a monthly basis.

A late payment can also be defined as an amount of money paid after the due date or payment period elapses for any service. It is considered a late payment not only because it is past due but also due to the fact that it has been paid after a specific grace period. Normally, service providers may extend payments for some time, for example 30 days after the actual payment due date.

However, some people may fail to pay within the extended time. This is what is considered to be a late payment. In the credit world, failing to pay after the grace period elapses earns you a spot in the negative credit list. You will be blacklisted. On top of that, prepare to pay an additional late payment fee.

The good thing is that all is not lost. The secret to avoiding being blacklisted is to acknowledge that you are in a crisis. Inform your creditors in advance once you foresee that such a scenario is likely to happen. Never run away from your creditors. Why should you run away now, yet they were there for you when you needed that quick loan?

Communication is crucial. In addition to that, present a formal letter to your creditors explaining why you have a late payment. Have supporting documents to verify your story. Credit companies operate on policies which protect both the company and you, the client.

As such, they should not deny you your freedom of expression. Once you do that, your late payments are unlikely to be included in your credit report.

Late payments give a negative impression regarding your financial image. A service provider may perceive you to be irresponsible once you become notorious for making late payments.

Causes Of A Late Payment

You may try to justify your late payments for various reasons. Maybe you had not anticipated that you would be in a financial crisis which caused you to have late payments in the first place. It is understandable. So, what are the common causes of late payments? Read below to find out.

Loss of Livelihood

No one can foresee what will happen in future. An unexpected termination of work can create an adverse financial crisis, especially if you used to service your loans from your monthly salary. Suddenly, you are unable to cater for those monthly credit payments or car loan and you end up in a fix with your creditors.

Physical And Mental Incapacitation Due To Injuries or Ailments.

People find themselves in unfortunate circumstances such as having a terminal illness or permanent body injuries from an accident. If you had taken loans or had a credit card, this can result to late payments. At this point, a caregiver can assist by enlisting you for legal expertise on your financial predicament.

Fraudsters

We live in a world of variety. Not all that glitters is gold. Not everyone in this world has good intentions in life. Some people just purpose to make it in life through the path of least resistance. They devise cunning methods which they use to acquire assets by stealing from others. Con artists and fraudsters can live off loans and credit cards which they fail to pay for, resulting in late payments.

Withholding Of Payments Due To Poor Service.

Sometimes, you may order for certain services only to be disappointed by the outcome. If you had not paid upfront, you can choose to withhold the payment as you seek solutions from the service provider. This can drag for some time, making you susceptible for a late payment.

Bureaucracy

In some cases, a late payment can arise due to certain protocols that have to be observed before payments are made. For instance, some clients may fail to pay on time as a result of waiting for authorization from a signatory. Funds cannot be released or a deposit slip cannot be banked without such authorization. Such bureaucracies create late payments.

Invoice Disputes

Disagreements may arise on payments thus causing a delay. The parties involved may revoke the invoiced amount claiming that it is an overcharge or the terms and conditions of the service are not at par with the charges. Such disputes have to be resolved and can lead to late payments.

Sometimes, the fault lies with the creditors. There are instances where you may be charged with late payments yet you had paid on time. This can happen when your creditor fails to update the system which indicates your monthly contributions. In this case, it is up to them to rectify that mistake and clear your name.

As you can see, not all late payments are caused by defrauders. Some have genuine causes which require solutions. Unless you have sinister motives, you should always feel free to discuss with your creditor why you are late on payments.

Is Credit Repair Effective For Removing Late Payments From A Credit Report?

This question is regularly asked by credit defaulters as they seek to clear their names from negative credit listings. Late payments can be removed from your credit report as you go through the process of credit repair.

This is achieved by establishing the real cause of the late payments. We have already looked at the causes above. At this point, both you and your creditor should then seek to resolve the matter by looking at all possible solutions for eradicating the late payments.

There are several ways you can employ to remove the late payment listings from your credit report. Let us delve into them.

How To Remove Late Payments Through Credit Repair

In case of an accurate late payment, the best way to get rid of it is to inform your creditor in person. Make contacts with them and explain your situation. This simple step can earn you the freedom from being blacklisted.

Submit A Goodwill Letter

As earlier stated, there is an existing relationship between you and your creditor. Sometimes a simple request can go a long way. Make a request to the creditor to erase the late payment from your credit score. It could be that you may have gone through an unfortunate event which rendered you financially inept.

A goodwill letter is a way of seeking empathy from your creditor. As such, you should ensure that you use courtesy in your wordings. Use polite language as this shows that you have owned up to the late payment and you do not desire to repeat the mistake in future.

It is important to note that the outcome may be favorable or unfavorable. However, make sure that after submitting the letter, you allow the creditor to do their part. Do not push them to concur with your request. Keep following up on the progress.

Goodwill letters are favorable to those who have a positive history on payments. If you are prone to late payments, chances are that the goodwill letter may not do the trick for you.

It is also advisable to make copies for filing just in case setbacks arise. Some creditors may claim that you never submitted any letter.

Disputing With Your Creditor

There are instances where the listed late payment is due to an error. It is important to always go through your credit documents and reports carefully. This can highlight any errors made. Simple mistakes such as a name being misspelt or a wrong date of payment can create a late payment. Once you verify the error, you have a right to raise a dispute with your creditor who will then have to correct and erase you from the list. What matters is the validity of your dispute. It also pays to have evidence to support your dispute. Keep any document you use as a client with your creditor.

Sometimes, things may take a turn for the worse and you encounter denial from your creditor even after the goodwill and the dispute. At this point, you can attempt the following two methods which are guaranteed to push through.

Raise A Dispute At The Credit Bureau

In the United States, there are three major bodies responsible for credit reports. These are the TransUnion, Equifax and Experian. Any responsible citizen ought to be cognizant of the roles these bureaus play.

Anytime you want to look at your credit report, credit score and credit status, any of the three bureaus is mandated to provide you with the information.

In case you have an erroneous late payment and your creditor is not bulging, you have a right to raise a dispute with the bureau. The bureau should assist you by evaluating the validity of your dispute. They will communicate with your creditor so as to look for effective solutions.

In addition, the bureau will set a timeline where your creditor should rectify the record. Normally they are given 30 days. If there is no change, the bureau itself will amend your credit report.

Inform the Consumer Financial Protection Bureau

Another major body that can protect you as a consumer is the Consumer Financial Protection Bureau. This sovereign body was specifically formed to protect consumers from unfair treatment from financial or credit institutions across the country.

It is mandated to supervise these institutions to prevent consumers from being taken advantage of. Also, it is tasked with creating awareness and educating consumers on how such institutions operate by providing educative resources.

This gives consumers a chance to exercise their rights as well as equip them with knowledge that makes them responsible consumers. When worse comes to worst, this is where you ought to go to raise a complaint about the late payment listed on your credit report and seek for it to be erased.

This bureau ensures that a response is obtained in the shortest time possible, usually within two weeks. They have a step-by-step process that is used from the time a complaint is raised. The good thing with this bureau is that they keep you in close contact throughout the process. Any decision they make is communicated to you promptly. In case they feel your case can be successfully handled elsewhere, they will communicate to you in advance before handing the complaint over.

It is possible to remove your late payments through credit repair. A take away tip from me would be this. As you progress in life, make it your mission to avoid unnecessary financial debacles. Strive to live as financially savvy as possible by making wise choices.

Credit Repair Lawyer Free Consultation

When you need legal help to repair your credit, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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What is Credit Repair?

What Is Credit Repair

Credit repair is a process that entails improving the credit report od an individual or organization by eliminating wrong credit details, therefore, lowering the accumulated debt at a fast rate over a given time. Having a poor credit score can be a great hindrance to obtaining certain products and services. For instance, with a low credit score, banks will not approve loans, and rental owners will not allow you to rent their property.

Clients who have an adverse credit history require expert assistance from a  professional who will help repair their credit. There are usually several factors to be considered when fixing your credit score. Planning is an important aspect when negotiating with a creditor for a particular transaction or business engagement.

Causes of low credit score

Late payments that are 30 days past the due date

If you delay in paying your loans and credit card deductions, then your credit score drops. Late payments of bills and other payments play a significant roll in maintaining your creditworthiness. Being unable to clear debts on the agreed time means that you cannot be trusted to take up a loan or rent an apartment.

Large purchases on products and services

The utilization ratio on your credit card could be a determining factor on your score. If you continuously acquire expensive items on your credit card, then you affect your credit performance. This could happen even if you manage to clear your debt on the agreed time. The credit card issuing agencies frequently generate account balance reports upon completion of the billing cycle. The balance appearing on your credit card statement is the one used to create your credit report.

New credit applications

Every time you apply for credit services, an inquiry is usually listed on your report. 10 percent of your overall score is based on queries; hence, new applications can reflect negatively on your statement. Inquiries typically reflect on your credit score for 12 months after which further requests will be affected within that given time frame.

Bankruptcy

When you declare bankruptcy, then it means that you are unable to pay off your debts. Being bankrupt poorly affects your credit performance as lenders will be unable to receive their payments.

Selecting an unsuitable type of credit card

Staying on top of your payments will require that you choose a credit card that has limits, friendly fees, and interest rates. Going for a credit card with high limits can be very difficult to maintain payments on time, especially if the limits are too high for your income.

Identity theft

When your bank details and confidential information fall into the wrong hands, then the effects can be damaging. The culprit might accumulate huge bills on your account which may overwhelm your account. And eventually your credit score.

Charge off status

This situation usually happens when a particular creditor assumes that you are not in a position to pay off your debts. When your credit account is listed as charge off, then your score is significantly lowered.

What does credit repair entail?

Regardless of whether you are personally repairing your credit performance or through the help of experienced attorneys, building good credit usually requires patience and time. What most people seem to overlook is that improving a credit score does not happen overnight as it is an ongoing process.

The following steps are usually taken into consideration when conducting credit repair.

  • Analyzing your scores and reports

The credit repair agency will first go through your credit reports which are typically made available to you annually from the top credit bureaus. The credit score is usually checked by obtaining your FICO score on their website. This first process is vital as it helps the repair organization to gather the scope of what they will be dealing with in terms of your score performance. It is, therefore, essential to provide as much details as possible.

  • Submitting disputes

If there are any errors exhibited in your report, then the best thing to do is to dispute the errors with the credit bureau. The sooner you file for disputes then, the easier it will be for you in the repair process. The information provided by the bureau should be accurate and be up to date. Removal of such mistakes can go a long way in improving your credit score.

  • Prompt payment of bills

You will be advised by your attorney to start clearing your bills before the due date. Payment history is a critical factor in your credit report and accommodates up to 35 percent of the FICO score. You can come up with a payment schedule that allows you to tackle one bill at a time to avoid feeling overwhelmed as the payment deadline approaches.

  • Take note of your credit card balance

Always strive to maintain a balance that is below an average of 30 percent. You should avoid debt accumulation as much as possible. Clear outstanding balances on time to increase your score performance.

What do credit repair organizations do?

Credit repair organizations will request for your credit report file from the main credit bureaus. They will then analyze the reports for identification of derogatory marks. Such information includes;

Charge offs

Charge-offs occur when you delay paying several debts to a point where the creditor prevents you from accumulating more costs. Such obligations include huge balances from mortgage or the credit card company. Even though an account is charged off, it usually means that you are still liable for the debt. The credit repair organization or your attorney will review the information regarding your charge-off details to ensure that everything is in order.

Important information that the credit repair agency will look out for

i) Since your account might go through several collection agencies over a given period, it is vital to ensure that all the sold accounts are appropriately recorded and contain a balance of zero. The current accounts are the only ones that should include an open listing.

ii) Noting the outstanding balance to determine if it is exaggerated or within the absolute limits. Your attorney will be able to consult the creditor for explanations of the extra costs and corrections after that.

ii) Verification of the date that the charge-off was made. The original account should contain accurate information as well as the subsequent statements. The charge off period should be the same across all accounts and should match the original account.

Clearing charged off debts

One might sometimes be tempted not to pay the outstanding debts since the creditor has ceased collection from the given account. You are however legally obliged to take responsibility of the debt until the debt is settled, paid for or dismissed through a bankruptcy declaration.

Clearing charged off account

  • Working with the original creditor. This option is most suitable in cases where the debt has not yet been transferred to a collection organization. Working directly with the lender to clear outstanding balances will have a positive effect on your account.
  • Settling the outstanding balance. This option allows you to agree with the collections agency or original creditor. The amount to be cleared might be less compared to the original balance.
  • Paying the collection organization. The credit repair agency or attorney should be able to contact the collection firm to confirm ownership of the account before making payments. The ‘paid collection’ status on your report will be better placed to improve your credit performance.

Tax Liens

This refers to the legal claim that the government has on your property as a result of failing to pay your tax fees. A tax lien does require you to sell off your property to clear your tax charges. However, when you make a sale on your property, the government receives a portion of your proceeds to cater for the amount owed.

Your property can be affected by a tax lien including vehicle, financial assets, home and even real estate. The tax lien does not usually proclaim the type of asset to be affected, but rather all your property is liable even the ones which you plan to obtain in the future.

Credit report agencies usually include tax liens on the generated reports which could lower your credit scores. A tax lien can be limiting as it can affect your ability to make transactions in regards to selling the property and managing your business. It is usually challenging to dismiss a tax lien by declaring bankruptcy, making it quite hard to avoid.

Clearing your tax lien involves;

  • Clearing your tax bills immediately. The IRS will then be able to dismiss the tax lien within 30 days after receiving your full balance. It is important to note that a cleared tax lien can be reflected on your credit report for about 7 years after repayment.
  •  You can request for the tax lien to be exempted from a specific property. The IRS usually accepts such requests under exceptional situations. For instance, you are not allowed to sell your home if a tax lien is placed on it. However, the IRS might allow you to sell it if you lack other alternatives for clearing your debt.
  • It is important to note that even though a tax lien has been withdrawn from a given property, you are still required to clear the amount owed.

Declaring bankruptcy

Declaring bankruptcy in a court of law is another way of doing away with bad debt. If you are in no position to clear your debts due to your financial situation, then bankruptcy can relieve you of the burden. Bankruptcy becomes public record that is listed on your credit report hence lowering your credit performance. Working to rebuild your credit score after filing for bankruptcy takes time and plenty of effort.

Bankruptcy will be reflected on your report for a period of up to 10 years hence limiting your ability to receive loans and higher credit limits. You can work to improve your situation by lessening the effects on your credit through prompt payments of debts and living within your means.

What is the cost of credit repair?

The total fees charged by credit repair organizations depend on the type of organization. An agency with a long term experience in the industry will charge higher costs compared to junior firms not well established.

An important rule that legitimate credit repair companies adhere to is not requesting payments from their clients until they produce the agreed upon results. You might be required to pay a one- time fee or instalments depending on each derogatory mark that the organization handles from your credit report. This type of billing ultimately depends on the given repair agency.

The charges might range from $35 per derogatory removal to $750 and above. Other organizations request payments every month from $50 up to $130 and above. You should also include set up fees for obtaining your credit reports.

How long does it take to complete a credit repair process?

When you submit your credit report disputes to the credit bureau, they will have about 30 days to investigate verification of the disputes. The credit bureau will first contact the agency that provided the balance information to identify any disparities. You will be able to receive the results of the investigation within 5 working days after completion of the verification process.

Relevant laws regarding credit repair

When you seek the professional guidance of a credit repair lawyer, then one of the main topics that you will talk about is your consumer rights under the FCRA, meaning the Fair Credit Reporting Act. This Act is responsible for regulating the information acquired by credit bureaus. The Act ensures that you have the rights to dispute incorrect information that is damaging to your credit report. Different states may also provide their protection laws that put into consideration the welfare of the consumer.

Conduct extensive research online to identify good credit repair agencies so as not to fall to scams. You can seek the help of an experienced credit repair attorney who will ensure that all your rights are protected and that your credit repair process is fair and successful.

Credit Repair Free Consultation

When you need help to fix your credit, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Can Credit Repair Help With a Student Loan?

Can Credit Repair Help With a Student Loan?

Credit repair is the process by which a person or a business can improve their ability to take loans by rectifying their wrong debt information in the credit report. Surviving with a lousy credit history nowadays is very critical. Most of the credit companies use your credit history information to rate you up. It can be done by paying your borrowed money as soon as possible and on time. I know you have been taking loans and sometimes you are unable to pay back on time. Save your reputation, it is better to pay loans on time, and in advance, for a time you will be in a fix. It is the way to get yourself into a good credit score record. When it comes to credit repair, you should follow these tips and tricks to help you along the way. When you need help with student loan credit repair, be sure to call Ascent Law for your free consultation.

Bad credit lowers your chances of borrowing

Typically what happens when you have bad credit report it increases your interest rates of borrowing. In addition to that, your credit score goes down, so it means more charges imposed on your credit cards arrears. To get back on track, you need to repair all your credits to get a more competitive interest rate. Helps you to cut off the money allotted for your interests.

Get higher credit limits

In most cases, your ability to pay loans on time earns you a better chance to stand for a more upper credit limit. With poor credit, the score is hard for your creditor to trust your ability to pay, and so they lower your loan limit. For your credits to increase, you need to demonstrate very high discipline on payment.

Evade the debt collector stigmatization

When it comes to repaying your debt, it means paying off those debt collection accounts. If you fail to harken on the payment, you might enter into stigmatization every time you see a reminder. Phone calls, letters, short send message is not what you would prefer daily. It can instill fear until you are relentless. My advice is you pay, and clear debt before the matter gets out of hand. The threats of a portion of your assets being taken to pay off debts are hazardous and stigmatizing.

To be in a position to get credit cards

Without the credit it means, you will use cash into paying everything. Generally, if you have a low credit score, it will be hard for you to get a credit card from any financial institution. It might not hit you as a problem until you need a very crucial thing in life that needs the help of a credit card. To save yourself from trouble clear your debts and try in as much as you can to maximize your credit limit rate.

To avoid paying a very high-security deposit

Financial service providers and other electronics company will reconsider your credit cards before permitting you to establish a service with them. Offsetting the risk of negligence, utility service providers impose you a deposit. If you make payments on time, you can be allowed to get your deposit back. When you do this your credit score raises and you are saved from being penalized in the form of deposits. Here are some ways to reconstitute your bad credit report

Pay your loans on time

To maximize your borrowing rate, you need to pay off your loans on time. Usually, if you pay your loans on time, the financial services company are lenient to maximize your credit borrowing late. They can build trust in you and your ability to pay on time. Reduced payment habit chance will deny you an opportunity to be trusted. You might think you are lucky your credit card is not listed, but in one way or another they will catch up with you if there is a late payment. Avoid any misconducts on any account, even small ones like library fines, school lunch, and medical bills. Paying on time portrays you are responsible, accountable an eventually trustworthy by your creditors.

Analyze your credit report

Most of the credit bureaus give out copies of credit reports, so you need to take them to analyze every detail therein. Although it is hard to find a mistake on a credit card report, it is essential to be defined. You can do this once per year on a long term loan and maybe after three months on short terms loans.it will put you in a better position to monitor your payments, any outstanding credits and errors made. Note everything down for future referral if need be.

Develop better credit habits

If you want to know who a person who their characters judge them. Your behavior speaks louder and clear of a person you are. You need to develop a unique and remarkable characteristic of payment when it comes to credit borrowing. It is possible when you replace your credit damaging and spending habit so that you are accountable. Start paying your loans on time. If you are not able to make sure you communicate on time. If you give the promise to pay by a specific date, pay to avoid inconveniences and interfering with your creditor’s plan. Concede that bad habits can ruin your reputation with creditors.

Recover any outstanding balances

You need to borrow again. Pay off all due credit to get another loan. It will raise your credit score. You need to go on a bare- bone budget to save off some cash to pay down your balances.

Yes, you will suffer for a short time, but once you pay, you can rejoice and free yourself from credit collectors threats stigmatization.

If you fail to make the payment on time, you might enter into stigmatization every time you see a reminder. Phone calls, letters, short send message is not what you would prefer daily. Can instill fear until you are relentless. My advice is you pay, and clear debt before the matter gets out of hand. The threats of a portion of your assets being taken to pay off debts are hazardous and stigmatizing.

Decide to open another credit card account

The primary reason why you need to open another credit account card is to maximize you’re late of borrowing. As long as you have no pending balance on your current accounts, you stand a better position to increase your credit ratings. Again you can look for a creditor who is relatively cheap on interest to work with.get a card that does not charge an annual fee; credit cards granted without annual fee tends to charge a higher interest rate. I would like you to be smart. The reason for this account is not to get more cash for yourself but to improve your credit score.

Find a guarantor who you can trust

Sometimes things do not go as we desire. If you can find someone who can stand in the gap in case you are unable to pay credits on time, the better. If your spouse has a better credit history, you can talk to him/her if you can befit from their excellent credit history. If they agree, you can enjoy using their credit cards. If there is late payment on this card, remember it will also reflect in your credits as well. Here are some of the benefits of paying credits on time.

It helps you to keep within a budget

In most cases, your due loan date may not line up with the time you receive your salaries. It is an indication you will not be able to pay on time as expected. It is good to be conscious of any unnecessary spending while you are unable to pay your credits. You can put a budget where you can pay your loans early enough to avoid inconveniences. You will position yourself at a safer side when it comes to borrowing from your creditors.

Most people are unable to control their spending once the money is at hand, so putting up this budget will act as a reminder to their credit dues. You can also decide to change your credit card due date to fit your payment date so once you get your salaries you can pay off the pending balances. If you think it’ll help you budget better, try calling your credit card company and asking them to switch the date.

Paying on time means you will spend less

Ideally, creditors will always impose a penalty on top of the interest they should receive on late. Payment.if you can pay off your credit cards bills on time it will give you a less free cash to spend. Saves your self the trouble from being blocked away from borrowing if especially its persistence.

Help you to avoid incurring more deposit on your arrears.

Utility service providers and other electronics company will reconsider your credit cards before permitting you to establish a service with them. Offsetting the risk of negligence, utility service providers impose you a deposit. If you make payments on time, you can be allowed to get your deposit back. When you do this your credit score raises and you are saved from being penalized in the form of deposits. Instead of being charged more, it is better for your credit score to rise.

You can open more accounts

With good credit card report, you can open other considerations that are favorable to you. It is because you can outlook the ones you are having and compare with others, their rating availability of funds, their services, and essential information. Another thing is you can be different cover accounts with loans from another account which help you to avoid late payments.

However, opening too many accounts is not handled positively by creditors, so you need to be very careful about what you are doing.

It helps you build your reputation

Lenders will rate you on your character of payment. If you pay your bills on time, they will increase your credit score so they can lend more to you. Building your reputation means creditors can trust you with their finances. If you reach a place where you cannot control the situation, talk it over with your lender, avoid being ignorant.

It helps you to deal with inaccurate data

In sporadic cases, you find erroneous information with the creditor, but it can happen. Go through your credit card report and see where there some errors made. It will help you reach out on time before it ruins your reputation. Any incorrect entry will reflect a negative image with creditors.

Helps you to avoid harassment from credit card repair agencies

Threats from creditors are very humiliating. When it comes to repaying your debt, it means paying off that debt on time before the creditors reinforce you to pay. If you fail to harken on the payment, you might enter into stigmatization every time you see a reminder, phone calls, letters, short send message (SMS) is not what you would prefer daily. You are relentless, and in fear, you get irritated, and you will not have peace of mind. Pay and clear debt before the matter gets out of hand. The dangers of a portion of your assets being taken to pay off debts are hazardous and a total disgrace.

Following the above information as a student, you need to understand everything about credit card repair clearly. Get equipped with information about where you can get help about loans and creditors. If you can win their trust, your education can have a future.

Many times you will want to start or advance your study, and you are short of funds you can reach your creditors for help. It can only happen if your credit cards report is intact. If this has not been your trend, then you need to develop well. Have a remarkable character. Be trustworthy with loans and payments. Having this in life will raise your credit score limit, and you will befit from it for a long time.

Credit Repair Attorney Free Consultation

When you need legal help to repair your credit, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Consumer Credit Law

Consumer Credit Law

Consumer credit law is a vast subject. There are several different state and federal laws apply to credit transactions with consumers. If your company extends credit to consumers, you must comply with these laws. If you are a consumer, the businesses you work with must abide by these laws. Check with our office regarding these laws prior to extending credit to consumers, and about any state laws that may apply, such as usury laws. Usury laws set limits on the rate of interest that you may be able to charge a consumer. Some also limit late charges and other fees.

The Credit Practices Rule – The Credit Practices Rule applies to consumer credit contracts offered by finance companies and retailers for any personal purpose except to buy real estate. It prohibits creditors from including certain provisions (such as wage assignments and waivers of exemption) in consumer credit contracts, and requires a written notice to consumers before they co-sign obligations for others.

The Equal Credit Opportunity Act – The Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, color, religion, national origin, age, sex, or marital status. A business considering whether to extend credit is free to consider the usual factors in granting credit, like the applicant’s financial status and credit record.

The Fair Credit Billing Act. The Fair Credit Billing Act generally applies only to billing errors related to “open-end” credit. Examples of billing errors are charges that list the wrong date or amount, charges for goods or services that were not delivered as agreed, math errors, failure to post payments, failure to send bills to a customer’s current address, and charges for which the customer has requested an explanation. The act requires a creditor to take certain actions when a customer claims that the creditor made a mistake in billing them.

The Fair Credit Reporting Act – The Fair Credit Reporting Act protects consumers by requiring that inaccurate or obsolete credit report information be removed from a credit report. It applies to credit reporting agencies, and to businesses that supply information to credit reporting agencies and those that use consumer reports. Business owners are responsible for correcting inaccurate or incomplete information in a credit report.

The Fair Debt Collection Practices Act – The Fair Debt Collection Practices Act protects consumers by prohibiting debt collectors from taking certain actions when collecting a debt. Personal, family, and household debts are covered under the act. Prohibited actions include using threats of violence or harm, using false statements, or contacting the consumer before 8:00 a. m. or after 9:00 p. m. The debt collector must also send the consumer a written notice containing the amount of the debt, the name of the creditor, and what the consumer can do if he or she believes he or she does not owe the money.

The Truth in Lending Act – The Truth in Lending Act deals with the disclosure of information regarding the credit transaction. It requires anyone who regularly extends credit to consumers for personal, family, or household purposes to make certain disclosures regarding those credit terms. The disclosures include such things as the monthly finance charge, the annual percentage rate, when payments are due, when late charges are due, and the total finance charges. The disclosure requirements are very specific, and vary depending whether the credit is “closed” credit (a single or one-time extension of credit) or “open” credit (where additional extensions of credit are anticipated).

Consumer Credit Lawyer Free Consultation

When you need legal help with a consumer credit matter, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Credit Repair

credit repair

How’s your credit doing?

Do you need to repair you credit history?

The credit repair lawyers at Ascent Law help people just like you fix credit problems. You’ll work directly with a licensed attorney. Our program is extremely effective and we can help you. Our goal is to improve your credit and also your scores for all 3 credit bureaus. With our help, you’ll learn every little thing there is to find out about your credit records and start the process of fixing your credit right away.

Quick, Effective, Credit History Record Repair Service is available to you today. Call us today and we’ll help you pull your credit report for free and help you remove any and all negative entries.

At Ascent Law, we supply you with industry-leading credit report repair solutions that are at the very cutting edge. Our credit rating repair solution is genuinely unrivaled in terms of effectiveness, rate, and also our effectiveness for you, our client.

Real World Credit Repair Steps that you can take right now

In order for you to effectively fix your debt, you require the appropriate details so you don’t battle more than required. This write-up will certainly offer you the info you definitely have to understand about repairing your credit report damage. As hard as this process can be, it is convenient.

Always pay your costs in a timely manner. Not paying your costs on time will certainly trigger unnecessary late charges. There’s no requirement losing loan on fees by just paying costs when they are due. Supervise of your funds, pay your expenses in a timely manner, as well as don’t throw your loan away on late charges.

When picking a credit card to utilize after having to fix your credit history, pick one with a terrific security system. Ask the credit card business what actions they have in location to earn sure that your card isn’t really stolen or utilized without your permission, as well as choose the business that offers one of the most for the lowest charge.

Credit scores repair work takes some time, there is no fast fix. If there are unfavorable marks, there is nothing you can do except await them to fall off. As time takes place, the negative marks will count less against your rating, yet they will not vanish. It additionally requires time to reveal you could pay your bills in a timely manner and can do the positive things it requires to reveal you are trustworthy.

To repair your credit report, begin making your repayments on time. Work on lowering credit card financial obligation and also try to maintain the balances below thirty percent of the total amount in the future. Paying your cards on time protects against extra late settlement costs as well as develops a positive background. The longer you could maintain a positive settlement background, the higher your rating will obtain.

Discover as high as you could regarding the credit history fixing service that you are considering making use of. With the most up to date trend of credit rating repair service solutions today, there have actually been quite a few frauds turn up as well as doing your research concerning the service that you are taking into consideration should secure you from tossing your money away on a solution that is just out to rip you off.

Don’t simply consider your credit score when examining a totally free debt report, reviewed it over really carefully. Credit repair suggests understanding exactly what credit rating remains in your name as well as how it’s being ranked, so you should recognize each product and after that make use of that expertise to repair your credit.

If you detect an error on your credit score record, you must contact each debt bureau to remedy the mistake. Calling one bureau does not ensure that the improvement will certainly be made at the various other bureaus. Making sure that each bureau understands about the mistake, compose a letter to each one explaining the problem.

Considering that you recognize the stress and anxiety of credit report repair service, it is time for you to find the tension relief of credit scores repair work. Take the information you have actually learned about credit score repair work in this short article, and also use it to your details circumstance. With this, you ought to currently be on the appropriate track to repair in no time at all.

Free Consultation with Credit Repair Lawyer

Remember, we remove questionable adverse reports for our clients including Repossessions, Bankruptcies, Liens, Judgments, Collections, Garnishments, Charge Offs, Lawsuits, and Late Paid Accounts. We have Rapid, Powerful, Credit Repair available to you right now.

Call us today and get your Free Credit Repair Consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.7 stars – based on 45 reviews


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