It is very important to check your credit report for mistakes. It's important to your credit score.
When negative information on your report is true, the only way to get rid of it is for time to pass. Most accurate negative information can be reported by a consumer reporting company for seven years, and information about bankruptcy can be reported for 10 years. Information about an unpaid judgement against you can be reported for seven years or until the statute of limitations runs out, whichever comes first. There is no time limit on reporting information about criminal convictions, information reported in response to your application for a job that pays more than $75,000 a year, or information reported because you've applied for more than $150,000 worth of credit or life insurance. There is a standard way to figure out the reporting period of seven years. Most of the time, the time starts from the date that the event happened.
Your credit report might not show all of your credit accounts. Most of the credit cards you have at national department stores and all-purpose banks are in your file, but not all. Some travel, entertainment, gas, local stores, credit unions, and credit card companies are usually not included.
If you were told you couldn't get credit because you had "insufficient credit file" or "no credit file" and you have accounts with creditors that don't show up in your credit file, ask the consumer reporting companies to add this information to future reports. Many consumer reporting companies will add verifiable accounts for a fee, even though they are not required to do so. But if these creditors don't usually send information to the consumer reporting company, the new information won't be added to your file.
Paying your bills is hard for you? Getting notices of default from your creditors? Your bills are being sent to debt collectors, right? Worried that you might lose your house or your car?
You're not alone. A lot of people have trouble with money at some point in their lives. Whether the crisis is caused by illness in the family or oneself, the loss of a job, or just too much spending, it can feel like too much to handle. But most of the time, it can be solved. Your money situation doesn't have to get worse if you don't want it to.
If you or someone you know is having trouble with money, you could make a realistic budget, get credit counselling from a reputable organisation, consolidate your debt, or file for bankruptcy. How do you know which will help you the most? It depends on how much debt you have, how responsible you are, and what your plans are for the future.
The first step to getting your finances under control is to take an honest look at how much money you bring in and how much you spend. Start by writing down everything you earn. Then, make a list of your "fixed" expenses, like mortgage or rent payments, car payments, and insurance premiums. Next, make a list of the costs that change, like clothing, entertainment, and recreation. Writing down all of your expenses, even the ones that don't seem important, is a good way to keep track of your spending habits, figure out which ones are necessary, and put the rest in order of importance. The goal is to make sure that you have enough money for housing, food, health care, insurance, and schooling.
You can find information about budgeting and how to handle money at your local library or bookstore. Also, software programmes can help you make and stick to a budget, balance your chequebook, and come up with plans to save money and pay off your debt.
If you're having trouble making ends meet, you should talk to your creditors right away. Tell them why it's hard for you, and try to come up with a new plan that lowers your payments to something you can handle. Don't wait until a debt collector has been sent to get your money. Your creditors have given up on you at that point.
The federal Fair Debt Collection Practices Act says how and when a debt collector can get in touch with you. A debt collector can't call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't want the calls. Collectors can't bother you, lie to you, or treat you unfairly when they try to get you to pay back a debt. And they have to stop contacting you if you ask them in writing to stop.
Counseling for credit
If you can't make and stick to a budget, can't work out a payment plan with your creditors, or can't keep track of your bills as they pile up, you might want to talk to a credit counselling organisation. A lot of credit counselling services are free and can help you solve your money problems. But keep in mind that just because a group says it's "nonprofit" doesn't mean its services are free, cheap, or even real. In fact, some credit counselling services charge high fees that may be hidden or push people to make big "voluntary" payments that can add to their debt.
Most credit counsellors can help you in person, over the phone, or on the Internet. If you can, find a place that offers counselling in person. Credit counselling programmes are run for free by many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service. Your bank, your local consumer protection agency, and your friends and family may also be good places to get information and suggestions.
Credit counselling groups you can trust can give you advice on how to handle your money and debts, help you make a budget, and give you free educational materials and workshops. Their counsellors are certified and have been trained in budgeting, managing money and debt, and credit. Counselors talk to you about your whole financial situation and help you come up with a plan that fits your needs to solve your money problems. Most first counselling sessions last an hour, and follow-up sessions are often offered.
