What information is included in my credit report?
Your personal credit report contains:
Federal district bankruptcy records and state and county court records of tax liens and monetary judgments. This information comes from public records.
Specific information about each account, such as the date opened, credit limit or loan amount, balance, monthly payment and payment pattern during the past several years. This information comes from companies that do business with you.
The names of those who have obtained a copy of your credit report.
Your name, current and previous addresses, phone number, Social Security number, date of birth and current and previous employers. Your spouse’s name may appear on your version of the credit report, but it will not appear on the version that is provided to others. This information comes in part from your credit applications, so its accuracy depends on your filling out the forms clearly, completely and consistently each time you apply for credit.
Statements of dispute, which allow both consumers and creditors to report the factual history of an account. Statements of dispute are added after a consumer officially disputes the status of an account, the account has been reinvestigated, and the consumer and creditor cannot agree about the account status. Both the consumer’s and creditor’s statements of the account status will appear on the credit report. Enlisting credit repair companies like community credit repair will help you understand more.
How often should I check my credit report?
Your credit history plays a major role when you apply for any type of credit or loan, such as a credit card, auto loan, mortgage, employment screening, utilities deposits and insurance. It is a good idea to know what is included in your credit history before applying for credit or a loan. Creditors and lenders use your credit history to determine if you are a credit risk. The most important thing you can do to demonstrate you are a good credit risk is to pay your bills on time. There are many monitoring sites that are free now such as www.creditkarma.com.
Why aren’t my spouse’s accounts displayed on my credit report?
The credit reporting agencies maintain individual credit files for each U.S. resident. They do not maintain combined files for spouses. Therefore, your credit report is separate and different from your spouse’s. Joint credit accounts you have with your spouse will appear on both credit reports.
What information is not in a credit report?
Your credit report does not contain – and does not collect – data about race, religious preference, medical history, personal lifestyle, political preference, friends, criminal record or any other information unrelated to credit.
What should I do if I find an error in my credit report?
First, get a copy of your report and review it carefully. If you find an error, you may dispute it. You can also call the telephone number on your credit report for assistance if you feel any information is inaccurate or incomplete. Enlisting credit repair companies like community credit repair will help you understand more.
How long does it take before I get results from a dispute?
Please be specific by including the account number of an item you feel is in error and explain exactly why you feel it is inaccurate. Simply saying an item is wrong does not give enough detail to help resolve the issue. Investigations of disputed items can take up to 30 days, or up to 45 days for items disputed on your credit report.
How does a credit bureau help me?
If you’re like most consumers in the United States, your ability to own a home, purchase a car, fund a college education, travel and make routine purchases hinges on your responsible use of credit. Because an automated credit reporting system run by national consumer credit reporting agencies works quietly in the background, you have unlimited options in your financial life. For example, you can:
Purchase a home in one area of the country based on the good credit record you established while living in another part of the country.
Shop for and be offered financial services from institutions in other regions of the country.
Negotiate a deal for a new car and drive it off the lot within a few hours.
Credit reporting also helps foster intense competitive marketing battles among financial services providers. This competition provides you with:
Lower interest rates.
Reduced annual fees
Special toll-free customer service phone numbers
Customer recognition programs
Purchase protection plans, and many other benefits.
Enlisting credit repair companies like community credit repair will help you understand more.
How long does information remain on the credit report?
Accounts paid as agreed remain for up to 10 years.
Accounts not paid as agreed remain for 7 years.
Remain for 7 years.
The time periods listed above are measured from the date in your Credit Report shown in the DATE OF LAST ACTIVITY field accompanying the particular credit or collection account.
Courthouse Records Remain for 7 years from date filed except:
Bankruptcy-Chapters 7 & 11 remain 10 years from DATE FILED.
Bankruptcy-Chapter 13 non-dismissed or open remain 10 years from DATE FILED.
Unpaid Tax Liens remain INDEFINITELY.
Paid Tax Liens remain up to 7 years from the DATE RELEASED.
California State Residents Only: Unpaid Tax Liens remain 10 years from DATE FILED
Experian stores information regarding unpaid tax liens, which remain for up to 15 years.
Active positive information may remain on the report indefinitely.
Inquiries requests for your credit history remain on the credit report for up to two years.
Why can’t information be deleted from the credit report?
Credit bureaus store information from credit grantors and public records in compliance with the Fair Credit Reporting Act. When you use credit, a record of your payment history is reported to credit reporting agencies. If you believe the information in the credit report is inaccurate, you may dispute it and the credit bureaus will investigate and correct or remove any inaccurate information or information that cannot be verified. Enlisting credit repair companies like community credit repair will help you understand more.
Do credit bureaus approve or deny credit?
Credit bureaus do not grant or deny credit. Each credit grantor makes that decision based on its own guidelines. Credit bureaus only store information from credit grantors and public records and supplies this information to other creditors.
How does a collection account appear on the credit report?
While you make payments on your collection account, the status will remain “collection account.” Once you pay the account in full, then it will show “paid collection.” A paid collection account will remain on the credit report for seven years from the initial missed payment that led to the collection.
Why does student loan information appear more than once on the credit report?
Student loans are reported individually by enrollment periods, therefore, the loans can not be combined.
Can I get a free copy of my credit report if I’ve been turned down for a loan?
Under the Fair Credit Reporting Act (FCRA), you may be entitled to receive a free copy of your personal credit report if you have received notice within the past 60 days that you have been declined credit, employment or housing, or if adverse action has been taken against you based on information from your credit file. Enlisting credit repair companies like community credit repair will help you understand more.
How do I contact or order a copy of my personal credit report?
You may call or go to their website.
All consumers are also eligible to obtain one free annual credit file disclosure from each of the national credit reporting companies every twelve months. You may request your disclosures at www.AnnualCreditReport.com or by calling 877 FACTACT. If you prefer to write, a request form is available at www.annualcreditreport.com
What’s the difference between a consumer disclosure and a credit report?
A consumer disclosure contains a comprehensive history of your credit information, including all inquiries. A credit report contains the same type of credit information and inquiries that a lender or creditor will see when they check your credit. The key difference is the consumer disclosure includes some inquiries, such as account monitoring and those resulting in pre-approved offers and some address and demographic information that is not displayed on the credit report viewed by lenders. Enlisting credit repair companies like community credit repair will help you understand more.
Debt Consolidation FAQs
What is the difference between a Debt Consolidation Loan and a Debt Management Program?
These types have two main differences. When enrolling in a debt management program, no loan is needed. The client agrees to pay the debt management company (or credit counseling agency) one payment that will be passed along to all accounts enrolled in the program. In contrast, a consolidation loan is offered through a company that specializes in this form of debt management. The client’s multiple accounts will be paid with this one loan and the client will then make a monthly payment to the company to repay the loan.
They also differ in that a debt management program is typically done through a nonprofit credit counseling agency and includes financial education to ensure the client is empowered to make healthier decisions for financial stability long after they finish repaying their debt. Enlisting credit repair companies like community credit repair will help you understand more.
What is unsecured debt?
Unsecured debt refers to debt that is not backed or attached to any form of collateral including credit card and medical debt, bills in collection, etc. On the other hand, secured debt includes mortgage and car loans in which case, should a borrower be found incapable of repayment, assets can be repossessed or ceased.
Is Debt Consolidation bad formy credit score?
Participating in a debt management program in order to consolidate your debt does not directly affect your credit score. A temporary note may be made on your credit report by your current creditors. This simply informs other creditors of your attempt to repay your debt and discourages them from issuing you any new accounts, lines of credit, or loans that may detract from your efforts. Once you have completed the DMP, this notation is required to be removed. In certain circumstances, when a client enrolls in the DMP and either they or their creditors’ close credit accounts, the client may see a short-term drop in credit score partly due to a change in the ratio of current balance to available credit limit. However, this dip is quickly recovered because of on-time payments which lower debt owed. Enlisting credit repair companies like community credit repair will help you understand more.
Does Consolidation work on a limited income?
Because qualifying for a loan is typically based in part on income, acquiring a consolidation loan could be difficult on a limited income.
However, consolidating debt through a debt management program requires no minimum income. Aside from a complete inability to pay, credit counseling agencies are willing to work with most incomes to create affordable payments and program participation.
Which plan is right for me?
Both consolidation loans and debt management programs negotiate down the total debt repaid by fighting for lowered interest and eliminated fees or charges. Both methods also promise a repayment plan that lasts 5 years or less. If you feel comfortable applying for a loan and can qualify, then a loan is not beyond consideration. If however, you feel your income is inadequate, your debt is too large for a loan, or you feel access to financial education would be uniquely beneficial, then a debt management program may be the more favorable option. More information can be provided to assist with your decision by scheduling free consultations with the companies under consideration. Enlisting credit repair companies like community credit repair will help you understand more.
Do lenders perceive Consolidation negatively?
While lenders may be temporarily deterred from lending to someone who has consolidated debt because of closed accounts or credit report notations, these marks will fade, never lasting longer the repayment program itself. Lenders then will be more willing to offer credit or loans due to increased credit scores. Many clients are even able to purchase homes shortly after completing their debt repayment. Enlisting credit repair companies like community credit repair will help you understand more.
How long does will it take?
Working with a loan or debt management program on average takes between three and five years to repay. Nonprofit credit counseling agencies are in fact required by various regulations to develop a plan for clients to be debt free in five years or under.
How do I sign up?
Start by calling for your free consultation at 888-580-2879
Debt Consolidation: The process of condensing multiple payments towards numerous accounts into one monthly payment to pay off debt.
Debt Consolidation Loan: One type of consolidation in which a loan is acquired to pay off existing debt and monthly payments are redirected to pay back the new loan.
Credit Counseling Agency: This most often refers to a nonprofit organization that strictly adheres to government standards in business practices as well as provides clients and local communities with free access to financial education and related resources.
Debt Management Program: A program often offered through a credit counseling agency in which clients pay a one-time enrollment fee and from then on make low monthly payments. These payments are disbursed to creditors in amounts agreed upon and also go toward covering the cost of account maintenance.
Unsecured Debt: Debt which has been extended without secured collateral. This usually includes credit card debt, medical debt, payday or personal loans, utility bills, and debt in collections.
Secured Debt: Debt which has been extended with secured collateral typically including mortgage or car loans, home equity lines of credit, or title loans. In this instance, if a debt goes unpaid, repossession or seizure of assets is contractually acceptable. Enlisting credit repair companies like community credit repair will help you understand more.
How to Prepare to Speak with a Debt Consolidator or Credit Counselor Whether you set up an appointment online or over the phone, there are usually a few things you can do ahead of time to have a more successful consultation. You’ll first want to gather a variety of financial documents. This includes your bank, credit card, and medical bill statements, account transaction histories, and loan contracts and current balances as well as any attempts on the part of companies or institutions to contact you regarding your debt. You will also want documentation on your income and have a solid understanding of your expenses and spending behaviors. Finally, consider your short and long term goals and be prepared to discuss these with your counselor. Knowing what you are trying to accomplish will help your counselor determine if consolidation is the right option for you.
What is Debt Consolidation? The definition of debt consolidation would be:
The act of consolidating several debts and financial obligations into one. The simplest explanation of debt consolidation would be to describe it as turning several monthly payments into one payment per month.
There are many reasons as to why a person may want to consolidate their debt. These reasons range from wanting to secure a lower cumulative interest rate, to avoiding bankruptcy. There are two distinct types of debt consolidation; With or Without a loan. Enlisting credit repair companies like community credit repair will help you understand more.
Debt Consolidation With a Loan A debt consolidation loan is an act of taking out one loan to pay several smaller loans, preferably at a reduced interest rate from the rates of the smaller loans, since many credit cards have interest rates in the teens to the high twenties in terms of percentage points. In some cases, due to the interest rates being lower, individuals may obtain a smaller monthly payment.
Debt Consolidation Without a Loan Usually accomplished through a debt consolidation plan, also known as a debt management plan (DMP), offered by credit counseling organizations. The primary focus of these plans are to obtain reduced interest rates on an individual’s credit cards and other unsecured debt. Another common goal of debt consolidation is to lower the overall monthly payment in order to provide immediate relief to the individual. Lower payments can typically be obtained due to the interest rate reductions that many creditors provide.
The types of debt credit counselors may work with include but are not limited to, credit cards, collection accounts, personal loans, payday loans and other unsecured debt.
A home loan or an automobile loan would be considered secured loans; therefore a credit counseling agency would not be able to obtain reduced interest rates or payments due to the loans being secured with collateral. Enlisting credit repair companies like community credit repair will help you understand more.
Alternatives to Debt Consolidation There are essentially three alternatives to debt consolidation. Each comes with differing benefits to the consumer and provides different risk versus reward scenarios.
Debt Settlement or Debt Negotiation In this scenario, you would stop paying your bills altogether. These may be the most prominent ads currently. The draw is that you can simply stop paying and save upwards of 60% or more on your debt. The reality is that by not paying your bills your credit rating becomes trashed. In some cases, a creditor can still sue for the unpaid amount. Another worrisome problem is that there have been unscrupulous debt settlement outfits that have defrauded their clientele.
Bankruptcy Your credit score may take a heavy hit, but if you can file for a chapter 7 bankruptcy, you may be able to get your unsecured debt cleared. This can help provide a fresh start and put you back on track to restoring your credit rating. In some instances, where an individual is truly unable to repay their debt, filing bankruptcy may be in an individual’s best interest. Enlisting credit repair companies like community credit repair will help you understand more.
Creating Your Own Payment Plan In many cases, by making personal sacrifices and budget adjustments, an individual may find themselves better off by developing their own payment plan. It is important to attempt to pay back more than the minimum monthly payments owed in order to get ahead. If the bills are already in arrears it may be difficult to overcome the late and over limit fees along with the higher interest rates. Creating your own payment plan works best when accounts are current.