10 Credit Articles on Credit Repair

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  1. Re-establish Your Credit.

  2. How Judgments Affect Your Credit

  3. How Long Does it Take to Rebuild a Credit Score

  4. How to Avoid Defaulting on Student Loans

Re-establish Your Credit.
8 Steps to Establish or Re-establish Your Credit

There are many steps that can be taken to establish or re-establish your credit. However, some actions
that you take can have a greater affect, and can help you to establish good credit in a shorter period of time.
The eight steps listed below will enable you establish or re-establish your credit quickly.

Steps to Establish Credit

When following the steps listed below, be sure that the creditor reports to one or more of the credit bureaus. If they don't, having an account with them will do nothing to improve your credit.

1. Open a checking account. Assuming you keep your account correctly, you can use this account as a credit reference.

2. Check about getting a loan with your savings account used for security. Pay off this small note on a short (three month) term. Then repeat the process.

3. Apply for a credit line at a local retailer. This will be easier to get than a bank loan or travel card.

4. Apply for a department store or oil company credit card. These are the easiest to qualify for.

5. Get a secured credit card. This is a very important way to increase your credit score dramatically, especially if you don't have any credit cards now.

6. You might have good credit that you've forgotten about. Think back, and dig out past creditors that reflect good paying habits.

7. Go to an appliance or department store and make a large purchase. Pay 50 percent up front, and ask them to carry the balance for a specific amount of time.

8. If you are refused credit, find out why. It could be an easily corrected mistake. Fix it, and apply again.

If you utilize these eight simple steps, you can begin to establish or re-establish good credit within a matter of months. Once good credit is established, you will find it easier to get credit for things that you need, such as a home or car loan.
How Judgments Affect Your Credit
How Judgments Affect Your Credit

Sometimes you will find judgments in your file that you are not even aware of. A judgment can be filed against you by anyone who feels you owe them money. If, once filed, the court decides you are in default, then you must pay the full amount. Because of this, try to avoid a judgment on your record by solving the matter with whomever is suing you.

How Will A Judgment Appear on Your Credit Report

A judgment against you that has been paid will show on your credit report as a "judgment satisfied." Yet on numerous occasions, a judgment will show "judgment unsatisfied" long after it has been paid. Also, the amount of the judgment is often in error. Thus, you may have good reasons to dispute the judgments on your credit record, use the same steps in disputing a judgment as you would for disputing any other derogatory item.

Steps to Take When a Judgment is on Your Report

1. If you have never been served with the lawsuit, have your attorney file a motion to vacate judgment with the court. After the court grants you the motion, send a court-certified copy of the court decision to all the credit bureaus that have recorded the judgment immediately.

2. If you have already received a judgment and you have been served, but perhaps improperly, you can still negotiate your way out of the judgment. You can either Call the creditor and inform them that you have been served improperly with the lawsuit, but you are willing to settle, or you can have your attorney file the motion to vacate judgment for you

3. Another alternative is to pay the judgment and make sure the bureau records the judgment as "Satisfied" on your report. You can then dispute the judgment for a legitimate reason.

Judgments do have a negative affect on your credit, but there are various steps that can be taken to either remove them from your credit report, or have them shown in a more favorable light. If you take the necessary steps, a judgment could have little or no long term negative repercusions on your credit score.
How Long Does it Take to Rebuild a Credit Score
How Long Does It Take To Rebuild a Credit Score?

It doesn't take much to damage a credit score, and it can happen overnight. On the other hand, it can take months or even years to repair those negative effects. The amount of time it takes to repair your credit score can vary, depending on what it was that caused it to decrease. However, understanding the most common reasons for a dip in your credit score can give you an idea of how long it will take you to rebuild it.

Delinquencies and Inquiries

Most decreases in scores are due to the addition of a new element to your credit report such as a delinquency or an inquiry. These new factors will continue to affect your score until they reach a certain age, unless removed from your report by your efforts.

Delinquencies (late payments) remain on your credit report for seven years. Most public record items remain on your credit report for seven years, although some bankruptcies may remain for 10 years, and unpaid tax liens remain for 15. Inquiries can drop your credit score a point or two each time they are done, and remain on your credit report for two years.

Having Items Removed

Once you take care of a delinquent debt, you can often arrange to have it removed from your credit report, which will cause your credit score to rise. Obviously, the faster you do this, the sooner you can begin to rebuild your credit score.

Of course, just because something is supposed to come off your credit report after a certain period of time doesn't mean that it will. The system is desperately flawed and you may have to take action to remove items that should have already been removed automatically.

Although various factors play into how long it will take to rebuild your credit, one small mistake such as a late payment, can affect your credit score for years. Few people can afford to wait seven years or more to rebuild their credit, so there are legal methods you can use to improve your credit score in a matter of weeks or months instead of years.
How to Avoid Defaulting on Student Loans
How to Avoid Defaulting on Student Loans

When trying to avoid defaulting on a student loan, preventive medicine is always best. By exercising early initiative, you can choose from a variety of options that may avoid any negative notations ever being placed on your credit report. Currently, there are a many various programs that can allow you to avoid default.

Deferment: A deferment puts your payments on hold and may be granted for graduate school, half-time study, unemployment, economic hardship or a variety of other reasons.

Forbearance: Forbearance is another option that is available for those who do not qualify for a deferment and allows you to either reduce your monthly payment or put your loan on hold.

Graduated Repayment: As the name implies, this enables a borrower to make smaller payments early in the repayment process when disposable income is typically not as available, and larger payments at a later date when earnings are probably greater.

Income-Based Repayment: Both FFELP and direct lending (FDLP) offer repayment plans that allow borrowers to pay back their loans as a small percentage of their income.

Consolidation Loan: This loan is designed to help borrowers consolidate several types of federal student loans with different repayment schedules into one loan with one monthly payment.

Discharged: A loan may be canceled due to death, permanent and total disability, bankruptcy (in some cases), or inability to complete a program of study due to school closure or false certification by the school.

Under FDLP, if none of the existing repayment options meet your needs, you can seek out a special arrangement by contacting the Secretary of Education, Borrower Service www. ed. gov

Defaulting on student loans should be avoided at all costs, because a default will cause your tax refund to be confiscated, and will prevent you from becoming approved for any other government funded loans. There are several options available that can help you avoid defaulting on the student loans you have, no matter what your financial position is.
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