Legal Credit Repair
How often have you heard this tale? A couple stashes away every space cent for years, then decide to plunk down a large chunk of cash and purchase their first new home. They spend weeks looking at available homes, touring with their real estate agent every day.
When they finally make their decision and select their new home, they are shocked to find out they have been rejected by the bank for their home loan. Their real estate deal falls apart and they cannot purchase the home. Embarrassed and confused, they don't know where to turn. Why did this happen? Unbeknownst to them, their credit report lists a couple of erroneous negative items. Negative credit items equals bad credit risk, said the bank, and rejected their loan application.They were in need of legal credit repair and didn't know it.
The above scenario happens more often than you realize. Many people know they pay their bills on time, so they don't worry about what's on their credit report, and then discover that a credit agency has attached erroneous information. However, sometimes people do pay their bills late, often by only a day or two, and that's all it takes for a creditor to send their credit score plummeting.
How long does a negative item affect your credit report? Seven years! You can even pay your past due payments and the late fees they generate, but the late payments won't be expunged from your credit report for seven years unless there is an error.
Transunion, Experian, and Equifax are recognized as the three largest credit bureaus. From the credit reports provided by the "big three", an estimated seven hundred data brokers deal in brokering the American consumers' personal credit information. Over one billion credit reports are issued each year, making credit reporting a billion dollar business!
The credit bureaus usually obtain their data from lending institutions, public records (such as at the courthouse), and you.
Every time you apply for a loan or a credit card, the potential lender is added to your credit report as an inquiry when your credit report is requested. When a creditor inquires (requests a copy) of your credit report, it doesn't affect your credit negatively. Complete numerous applications with different lenders at the same time, however, and like waving a red flag, you will alert other lenders, and it will affect your credit rating.
Bad credit can hurt you in many ways. You can be denied a home loan if you have a low credit score, like the family mentioned at the beginning of this article. If your credit is only marginally negative, you might still quality for the home loan but at a higher interest rate. However, your monthly payment could be significantly higher with just a 1% increase in interest rate on a home loan.
Employers can access your credit report if you give your permission first. Your credit report provides your employer with ammunition to hire, fire, or promote you. If negative credit information is used to not promote you or give you a job, federal law requires the employer to furnish you a copy of your credit report. They also have to furnish you with the credit bureau's phone number and inform you of how your credit report can have inaccurate information expunged from it.
The American public's habits of spending money, how we use our credit cards, and how we pay on them, is the basis of our economy. Inaccurate negative information in your credit history can right now be affecting your lifestyle. Considering how important your credit report is, when was the last time you checked it?
When they finally make their decision and select their new home, they are shocked to find out they have been rejected by the bank for their home loan. Their real estate deal falls apart and they cannot purchase the home. Embarrassed and confused, they don't know where to turn. Why did this happen? Unbeknownst to them, their credit report lists a couple of erroneous negative items. Negative credit items equals bad credit risk, said the bank, and rejected their loan application.They were in need of legal credit repair and didn't know it.
The above scenario happens more often than you realize. Many people know they pay their bills on time, so they don't worry about what's on their credit report, and then discover that a credit agency has attached erroneous information. However, sometimes people do pay their bills late, often by only a day or two, and that's all it takes for a creditor to send their credit score plummeting.
How long does a negative item affect your credit report? Seven years! You can even pay your past due payments and the late fees they generate, but the late payments won't be expunged from your credit report for seven years unless there is an error.
Transunion, Experian, and Equifax are recognized as the three largest credit bureaus. From the credit reports provided by the "big three", an estimated seven hundred data brokers deal in brokering the American consumers' personal credit information. Over one billion credit reports are issued each year, making credit reporting a billion dollar business!
The credit bureaus usually obtain their data from lending institutions, public records (such as at the courthouse), and you.
Every time you apply for a loan or a credit card, the potential lender is added to your credit report as an inquiry when your credit report is requested. When a creditor inquires (requests a copy) of your credit report, it doesn't affect your credit negatively. Complete numerous applications with different lenders at the same time, however, and like waving a red flag, you will alert other lenders, and it will affect your credit rating.
Bad credit can hurt you in many ways. You can be denied a home loan if you have a low credit score, like the family mentioned at the beginning of this article. If your credit is only marginally negative, you might still quality for the home loan but at a higher interest rate. However, your monthly payment could be significantly higher with just a 1% increase in interest rate on a home loan.
Employers can access your credit report if you give your permission first. Your credit report provides your employer with ammunition to hire, fire, or promote you. If negative credit information is used to not promote you or give you a job, federal law requires the employer to furnish you a copy of your credit report. They also have to furnish you with the credit bureau's phone number and inform you of how your credit report can have inaccurate information expunged from it.
The American public's habits of spending money, how we use our credit cards, and how we pay on them, is the basis of our economy. Inaccurate negative information in your credit history can right now be affecting your lifestyle. Considering how important your credit report is, when was the last time you checked it?