Darren L Perks asked:




A credit rating is a strange thing? It has the ability to help or hinder our lives in so many ways.

With a good credit rating it can open the flood gates to borrowing. With a bad credit rating your choices are very limited. The question is “How can an electronic record hold so much power? The answer is it’s all about risk.

Your credit score is used by any business that wishes to provide you with a service or credit. From the utility supplier looking to see if you can pay on time to a multi national bank offering you a mortgage. Your rating is the way a business assesses your risk, and your risk sets the price.

Any business offering you a service or credit is in business to make money. The business has to way up how much money they will make against the risk of you defaulting. This is why your credit score is so important. It helps them decide who is good, who is charged more and who is untouchable.

When you are in debt the debt can have a dramatic effect on your rating. The curious thing is as long as you can meet all the payments. Even if these are just minimum payments then your rating will be good. This will allow you to borrow more! A note of caution if you can’t repay your existing debt then borrowing more money is not a smart move. Seeking help is.

If you are struggling to repay your normal household bills and your debt, your rating is at a turning point. As soon as you start missing any regular payments your rating will fall. The more you miss the more it falls. By this stage it becomes so poor that the only way to improve it is by dealing with the debt.

For most people there a 3 main ways of resolving a debt problem (England & Wales only). These are Debt Management, Individual Voluntary Arrangement and Bankruptcy. Each of these solutions has different consequences so please take advice before entering any solution.

Let’s look at how each of the solutions affects your rating.

Debt Management is an informal arrangement between the Debt Management Company and the creditors. You a pay an agreed amount per month and the money is split between the creditors. As each creditor receives less than there normal monthly repayment. Your rating will continue to be affected until all of the debts have been paid in full.

Once the debts have been paid in full, your debts are classed as satisfied it will start to improve. Example: let assume debts of £25,000 with a repayment of £200 per month. Note the any debt management company charges an administration fee; let’s say £40 per month.

Without interest and charges it will take 13 years to repay the debt. However it is unlikely that the interest will be frozen and the repayment period can be much longer. In this instance your credit rating will start to improve after 13 years.

IVA (Individual Voluntary Arrangement) is a legally binding contract between yourselves and your creditors. An agreed monthly payment is paid into the IVA each month. Once the IVA is complete (usually 5 to 7 years) any surplus debt is written off.

A common misunderstanding is that your rating is treated differently in an IVA to someone in a bankruptcy. It is not. If you cannot repay all of your debts in full you are insolvent. While you are in an IVA your rating is classed as bankrupt- “Bankruptcy Status”. Your credit rating will only start improving once the IVA is complete (after 5 to 7 years). For many years after the completion of the IVA lenders will know that your previous debts were not paid in full. This will affect your ability to access credit

Bankruptcy is where you recognise that you cannot afford to repay the debts, and an application is made in the county court to be declared bankrupt. A bankruptcy lasts for 1 year but you may have to repay an agreed payment for 3 years. Once the year is over all your debts are written off.

Once you are declared bankrupt you will have a mark against your credit rating for 6 years. During this time all lenders will know that the debts were not repaid in full. However once the bankruptcy (1 year) is over your credit rating can start improving.

An IVA and bankruptcy are legally binding therefore you should seek advice before entering into any arrangement.

If you are in debt, improving your credit rating boils down to 2 factors.

1. The debt must be dealt with. How this is achieved is dependent on personal circumstance.
2. Time. The time it takes to improve your credit rating after the debt has gone.

By dealing with the debt you not only improve your credit rating but you set yourself on a path to security and financial freedom.

Duane

Jason Rodriguez asked:




Internet search engines constantly reveal that consumers search out information using the phrase 3 credit on score. However, something you should know is that such a phrase is inaccurate since there is not really a 3 credit on score.

There are three separate scores maintained by each of the three credit reporting agencies. These scores are separate from credit reports and consumers will usually have to pay to receive their credit scores. When people speak of a credit score in the singular, what they have reference to is the average of their three credit scores.

Suppose Trans Union gives you a score of 650, Equifax 680, and Experian 640. To get your credit on score, add 650+680+640=1970 then divide this total by 3 and you get the average of 657 which is your credit on score. Most likely, potential creditors will consider your credit on score to be 657 which is less than the national average which Experian says is 693. However, at least you know where you are and you can contact potential creditors to ask what their specific requirements are.

Should you need to improve your score, then click on the link below and read our article, “How to Increase Credit Score.” Sometimes a creditor, this is especially true for FHA and other mortgage lenders, will afford you the opportunity to submit in writing a statement why certain items appear on your credit report which caused your score to be lower than expected. You should definitely take advantage of such an opportunity. After all, a credit on score is but a snapshot of your credit at a given moment in time. Your credit score is not the full story of who you are. Still, because of its importance, you should take steps to know your score from each of the credit reporting agencies.

Brandon

Ceren H asked:


Let me start this over I have been in the country for 3 years . I came here with my student visa and opened an account with bank of america in 2006.Since I was a foreign and didn’t have a social they opened an account in a different way .Then I got married 2 years ago to my husband whom is a Us citizen.After our marriage I went to bank of america to update my address and name ..etc. They did the update which took for ever because they had to find my account info from a list which has millions of people whom they are holding other countries residency.From that time on I have been getting my statements and bank updates regularly with my name( marriage name) on it.Then one day I was at retail store to open an account with them they of course swiped my card to verify address and my application hasn’t been approved due to a mismatch on the address with my driver’s licence and debit card .After I contacted bank of america they couldn’t see any reason for that since I am getting my statements and everything,this follow up didn’t solve anything without even knowing that it is unsolved.

5 days ago my husband and I were trying to open joint account for us and we actually did open it online. They sent us a verification e-mail stating that it has been approved and they will be mailing our paper work in the mail .Since we thought we have an account we transfered some funds to that so that it would be active.Very next day I log in our online banking and our brend new account showing -$888.888.88 on hold.I of course freaked out and called my husband for him to call the customer service.He did talk to someone and that person said that the account is “at high risk”.My husband ask them the meaning of it.He couldn’t get any further due to the fact of our agreement .THEY DO NOT HAVE TO GIVE YOU A REASON TO CLOSE AN ACCOUNT. This morning we went to the bank .The lady who tried to fix our problem started with my old account.She updated the info and tried to talk to someone to fix our new account problem but no point.They have already closed our account and since there was another existing acoount under the same name they closed that to.The lady helping us asked the same question why?.And the person on the line whom is above her(as rank) said the same thing they do not have to give a reason.Lady who was helping us encourage for us to get a free credit report just to see if someone has stolen my identity .Sure enough I came home couple hourse ago and checked my credit report and I do not even have a credit history to begin with ..

I ended up not being able to open any other Checking accounts with this certain bank seems like no reason other than my nationality ! I am really confident to say this ,I haven’t commited any crime neither here nor in my homeland ,other than one seat belt violation in United States when had my driver’s permit,I do not have any criminal backround.They have red flagged me for life .I NEED TO TAKE A LEGAL ACTION! Need your advise ,the ones who has a knowlage of my situation

Thank you.

Rodney

tarot_princess86 asked:


Alright, I had an account in collections for a really long time. When I started paying it down the collector told me that once it was all paid off that I should send copies of the paid in full letter to the 3 main credit bureaus (transunion, eqifax and experian). However, she did not provide me with the addresses I needed. So I have been circling the internet for hours and hours trying to find these addresses and phone numbers. I found addresses and phone numbers for all three, but these addresses and lines are for obtaining credit reports. My questions are:

Q: If I send my paid in full letters to the main addresses listed, then will someone there know what to do with it, or throw it away because I was supposed to send it to some other (super-secret) address

Q: is it even necessary to send the paid in full letters to the credit bureaus? Because one would think that a collections agency would send that info off in their special way as soon as a debt is settled. ALSO, if it were necessary, you would think that there would either be a designated 1-800 number with PEOPLE to answer questions, a designated PO box address listed somewhere on the internet used for people who need a little more service than a free credit report, or a straight answer about any of these issues somewhere.

Sorry, that last question kind of turned into a rant….

If anyone can help me that would fabulous, and worth 10 points!

Colleen

babies_happen asked:


I went to walmart today to cash a $80 payroll check and was declined. I normally just deposit in my checking account but i recently closed it because i am moving in a couple days. Any way, they wouldnt cash it. they gave me a piece of paper with blah about check transaction file, free credit reporting act, call this #, the usual runaround. So i called the number and could not get ANY useful information in the 2 hours i was on the phone with them. I know what certegy does but i am trying to find out why they wont allow me to cash the check. The people at certegy couldnt/woulndnt tell me what reason 3 is. Anyone here know?

Laurie

KitKat asked:


Ok. I’m easily pushed into things because I’m a quiet, good person.

I recently went to Chase and opened a new checking account to get a $125 incentive for opening it. I felt extremely uncomfortable when she kept asking too personal stuff. Like how much exactly I make each paycheck and exactly how much I have in my other bank accounts. There is NO reason why they need to know how much is in my bank accounts. So I refused to tell her, but got tricked into saying my paychecks, which isn’t a huge deal. She said she just wanted to know because of my rates. But she should just have asked for my rates, not my specific amount. Then she insulted me with saying my credit card from my bank is, lowest, 13% interest. When it is actually 8.99% interest. I would have to be dumb to get a card with anything above 9% interest charges.

She was being really rude and insulting. Saying that since I’m 19 my parents must pay for everything and my cell phone. That is the most insulting thing anyone could ever say to me. They haven’t even paid for my school lunches since before high school. Ever since I started baby sitting at about 13, I have paid for everything myself. And she would just keep talking and lying about my life.

Then she goes and says that I need overdraft protection. I’m not irresponsible. I NEVER use money I don’t have. So I don’t need it. And if I was a stupid retard who overdrafts, then I deserve to pay the fee! But she said “I have people come in here all the time saying it would never happen to them, but then it does. So I’ll get you signed up for it.” I told her clearly that I did NOT want that. She said it was free on the account. I said I didn’t need it. She walked away and came back and said “Ok, you are approved and will be getting your card in the mail in a few days.” I’m like “What are you talking about?” She was like “The overdraft protection is a credit card and if you go over the balance it will draft it over in increments of $50 to help protect you from the fees.” And I was like “But I said I didn’t want it. It will show up on my credit report as another card and I told you I didn’t want it. And it will hurt my credit score.” And she’s like “Oh, you’ll need it. And it won’t show up on your credit report.”

So I did NOT give her permission to open this credit card. I specifically told her no! And then she insults me continuously! And someone told me that if you close a credit card within 6 months of getting it, it hurts your credit score. I am trying to buy a car right now. I have a good credit score. But not “excellent” in this economy. And this will be the 3rd credit card on my report! And if you have 3 or more cards it hurts your score (or it’s more than 3, idk). My ex’s overdraft protection was that if he withdrew too much out of his checking, the amount would roll over from his savings. So that is what I thought it was and the way she explained it. But I just opened a checking, no savings. And after I told the banker NO to the overdraft, she still went ahead and opened it without my permission!!!

A- Will it hurt my credit score to close it within 6 months of opening it?
B- What can I do to get this lady in trouble for this? Write a letter to the head of the bank? I bet she just did it because she gets bonuses for opening new cards. That’s why I said no, and she still went ahead and opened it. I’m furious.
She had me sign a paper saying that I opened the Checking account and she said it was for my signature for the checking account file. Do you think she used this as the credit card she opened without my permission???

Rosa

askwaltgomery asked:


i saw this website…i have a lot of friends who have done it, and it is a NO SCAM website, it is for real ( and i am serious )
it is freebiejeebies.com and what it is , is you have to refer a certian amont of friends for diffefernt prizes… and then sign up for either blockbuster online, netflix online, a weightloss program, 3 free credit reports, bidz.com , and a couple others… i signed up for netflix… but now for the gift i want ( a MacBook Air … i have to get 50 people to sign up for freebiejeebies.com by using this link ( i am serious this is not a joke, it really works, my best friend just got an iphone in the mail yesterday!
please sign up and help me achive the goal of 50 referrals with this link…(people with who sign up with more than one email adress will get points)…here is the link

http://gifts.freebiejeebies.co.uk/8849

Esther

Noah & Edwards Mommy asked:


I have been trying to fix my hubby’s credit I did the free credit report and only 3 show up. I have gotten calls all of the sudden the last month from 3 different debt collectors none of which are on the credit report.

How do I find who all he owes if they are not on his credit report?
I wrote down the info the people on phone gave and tried to verify on Credit Report to see if new person bought it but nothing matches, dates, type, amount…
This is frustrating!
All the people calling are medical bills. I have only had one person who can actually give me information that I could verify. The rest CLAIM they have no other information other than date, amount, and the place we owed. I have caled the hospital and they show no record of debt, but this could be because a collector has the account now….
stan c – I have all three, there are a total of 4 items on it that are neg. None of which are who is calling. That is a good idea asking for written proof…thank you. I asked for more information on the phone and 1st person claimed to not have any…they must have some more info on it to prove it is his debt.

Danielle