I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit Report

Posts Tagged ‘Equifax’

I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit Report

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Q: I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit or Will It Be After My 30 Days to Respond is Up? Also, is It Better to Pay the Creditor or Agency Directly?

A: If you are already more than 30 days delinquent in paying a debt such as a credit card bill, chances are the account has already been reported to the three main credit bureaus: TransUnion, Experian and Equifax. But you don’t have to do any guesswork about this. Nor do you have to take the collection agency at its word — regardless of whether or not it’s saying the report has been reported or hasn’t been reported. There’s a sure-fire way to know what’s on your credit report. It’s simply by taking advantage of your rights to get a free copy of your credit files from each of the “Big 3″ credit bureaus I previously mentioned. Just go online and get your credit reports and see for yourself. Look particularly closely at any records for “collections” or “public accounts.”

To get your free credit files, just go to: http://www.AnnualCreditReport.com.

Regarding your other question, I think it’s usually faster, easier and sometimes less financially costly to deal directly with creditors — as opposed to collection agencies. Those bill collectors often tack on additional fees, penalties, and other charges – expenses your creditors may be willing to waive.

Key Differences Between Equifax, Experian and TransUnion Credit Reports (askthemoneycoach.com)

Is it Wise to Consolidate Through a Debt Management Agency?

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Author: The Money Coach

Q: I Have Three Credit Cards and My Combined Monthly Payments are About $700. Is it Wise to Consolidate Through a Debt Management Agency? Will This Affect My Credit Score?

A: If you’re having trouble paying your bills on your own, yes, a debt management company can help. And contrary to popular opinion, simply enrolling in a debt management plan does not impact your credit score. Read this article on the differences between debt management and debt settlement companies, and learn why I strongly recommend debt management firms.

Fact Versus Fiction About Credit Scores (askamoneyexpert.com)

Posted in Credit Scores, Debt Settlement, Financial Planning, Resources, Saving Money, Taxes |

Tags: Budgeting and Money-Management, credit, Credit and Debt, credit card debt, credit cards, credit reports, Credit Scores, debt, debt collectors, debt management, debt management firm, Debt Management Program, Debt Settlement, Equifax, Experian, FICO score, Financial Planning, money management, National Foundation for Debt Management, negotiating, NFDM, Resources, Saving Money, Spending Money Wisely, Taxes, TransUnion |

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When Do I Say Enough is Enough and Stop Paying Certain Creditors to Pay Other Debts?

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Author: The Money Coach

Q: For the First Time in 22 Years I Can’t Make My Mortgage Payment. It Will Get Paid Via a Little Help From the Mortgage Company But I am Very Concerned. I Am Living in the Red by About $400 Each Month. When Do I Say Enough is Enough and Stop Paying Certain Creditors to Pay Other Debts? I Have Credit Scores From 730 to 760.

A: I’m sorry to hear that you are in a financial bind. But you’ve definitely taken the first step to turn things around financially, which is to recognize that you do indeed have a big problem. Maybe you were in denial in the past, or maybe your economic fortunes simply changed recently for some reason. Whatever the case, you seem to acknowledge that things can’t go on the way they have been. Not with you living $400 in the red each month.

If you’ve had a home for 22 years without missing any payments, I would hate to see you lose your house, so I hope you’re not talking about skipping payments on the home. Probably not. Since it sounds like you’ve reached out to your mortgage lender and received at least some support. I assume you are considering not paying other creditors, like credit card companies or perhaps your auto lender, that kind of thing.

I would suggest you take two steps. The first is to do an honest assessment and overhaul of your budget. Even if you get some relief from your creditors, it won’t do you any long term good if you are deficit spending. Go over your spending with a fine-tooth comb and see where you can cut back. Surely there are some areas/expenses you are willing to sacrifice or slash in order to keep your home, maintain your very good credit rating, and have financial peace of mind. Read this post about how to create a proper budget and this article on overhauling your budget too.

Additionally, before you simply stop paying creditors, contact each one directly and see what options, if any, might exist. Perhaps some of them are willing to put you on a deferred payment plan. You suggested in your email that a six-month reprieve from certain payments would give you some breathing room. Tell that to your creditors. If you make small token payments, that may show a “good faith” effort on your part, and it may keep bill collectors and creditors from hounding you. But those partial payments won’t necessarily stop creditors from reporting you to the credit bureaus. Anytime a debt is not paid as originally agreed, the creditor has the legal right to report that information to the major credit reporting agencies: Equifax, Experian and TransUnion.

If your creditors won’t offer any relief, and there’s nothing else in your budget to cut, yet you find yourself still in the red, then yes, it’s time to “cry Uncle.” At that point, I would make strategic decisions about what bills get paid first and which are second and third-tier obligations. See this TV interview in which I explain how to prioritize bills when you can’t afford to pay everything. Good luck!

Posted in Financial Planning, Homeownership, Real Estate, Saving Money |

Tags: budgeting, Budgeting and Money-Management, Credit and Debt, credit bureaus, credit cards, debt, Equifax, Experian, Financial Planning, homeowner, Homeownership, money management, Mortgage Loans, negotiating, Real Estate, Saving Money, Spending Money Wisely, strategic defaults |

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How to quickly boost your credit score

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Author: The Money Coach

Q: I Have a Credit Score of 625 and Am Trying to Refinance a Loan. The Bank Says My Credit Score Must Be a 700 to Get a Loan With Them. I Have an Existing Loan and When I Got it 4 Years Ago, My Score Was About a 710. I Need to Fix My Credit Soon Because My Loan is a Balloon Loan (That Comes Due) In About a Year. How Can I Clean Up My Credit Quickly?

A: The two absolute fastest ways to significantly boost your credit scores both involve getting negative information deleted from your credit files. If you have anything negative on your Equifax, Experian or TransUnion reports that is outdated, inaccurate or that can’t be verified, try contesting that information directly with the credit bureaus. Use their online credit dispute services for the fastest possible results. I’ve disputed information online and had erroneous information removed in just a day or two. Here are the direct websites for the credit bureaus to initiate an online dispute:

http://www.investigate.equifax.com
http://www.Experian.com/disputes
http://www.Transunion.com/investigate

Additionally, since you are trying to get a mortgage, you can utilize a service known as “rapid re-scoring” also known as “credit re-scoring.” Read this post about rapid re-scoring to learn how to get errors removed from your credit report in just 48 hours.

There’s no guarantee that either of these methods will boost your credit score by the 75 points you are seeking, but it’s certainly worth a shot. And if there is negative information that gets removed, you will likely experience some boost to your FICO scores.

However, if there are no mistakes to dispute, trying paying off some or all of your credit card debt. That will usually improve your credit scores. Even though it may be a hardship to come up with the money to pay off credit card bills, it’s helpful to become debt-free. Not to mention the short-and long-term savings it will net you from snagging that better loan when you are able to refinance.

For more tips on how to improve your credit score, pick up a copy of Perfect Credit: 7 Steps To A Great Credit Rating

How Long Does An Item Stay on Your Credit Report?

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Author: The Money Coach

Q: How Long Does An Item Stay on Your Credit Report? Which Date Do You Use for a Credit Card Opened in December 1984 that was Defaulted on (90 Days Late) In November 1986. It Went to Collection in January 1987. Which One of These Dates Applies When It Comes to the Statute of Limitations? When Will the Debt Come Off a Credit Report?

A: This debt should have long since fallen off your credit report. Under the Fair Credit Reporting Act, negative information such as the 90-day late payment you mentioned can only legally remain on your credit file for 7 years from the time of your delinquency. In your case, that would be seven years from the time you missed a payment or defaulted (i.e. November 1986). Because your debt is nearly 25 years old, it should definitely no longer appear on your Equifax, TransUnion or Experian credit files. If it does, simply initiate an online dispute with the credit bureuas and request that the credit account be removed on the grounds that this is outdated information. There is also a separate “Statute of Limitations” that doesn’t apply to your credit, but to the length of time after which a debt is no longer legally enforceable. After a debt, such as a credit card bill has run its statute, or expired, a creditor can no longer legally sue you in court, get a judgment against you, or do anything to pay you pay an old debt. In most states in America, the statute of limitations on old debts runs between 3 and 10 years. So again, from this standpoint too, that old debt should not cost you any money — or any worries.

Ask The Money Coach

Posts Tagged ‘Equifax’