Credit Score For Dummies

Just know this up front. Every creditor is going to tell you they can’t change your credit history. Just let them know that you know better. Occasionally, this situation will require that you demonstrate some knowledge of how this is done by suggesting possible methods to execute the change, In other words, don’t allow them to play dumb. Don’t allow anyone to con you into thinking that “we can’t do that.” They may tell you that they can’t change credit history. And occasionally, even the person with whom you’re talking won’t even know every method at their disposal.

Although the FTC distributes a great deal of good consumer information, they have slipped (or been misled) in this one area by buying into the credit bureaus false PR statements that “true and accurate” information cannot be removed. This is just not so.

Creditors typically write off or charge off a debt if there has been no payment on the account for more than 180 days (6 months). This does not, however, mean that the person no longer owes the debt. A charge-off is an accounting procedure for tax purposes used by the creditor where an uncollectible debt or charge-off is reported as a loss for the creditor.

If you have any charge-offs on your credit reports, your ability to obtain credit will be seriously impaired and you must actively work to restore your credit. Charge-offs stay on your credit report for 7 years from the date of the initial missed payment that led to the charge-off (the original delinquency date), even if payments are later made on the charged-off account.

Paying an old charge-off will not remove it from your credit reports.

Your ability (or lack of) to borrow money or have credit extended on your behalf is one of the most important assets you have. Your credit score can be considered to be a very important factor, not just by potential lenders, but by potential employers and even landlords. If your credit score is low, you will have trouble not only borrowing money, but will also find difficulty getting a job or renting a decent apartment or home. You can learn the steps to becoming a better borrower to improve your score and qualify yourself for better loans and credit cards.

Your FICO Score Determines Creditworthiness

The outlook for those of any credit type who are seeking loans is bleaker now than ever before due to the recent credit crunch and global financial crisis.