July 12th, 2009 Written By: Kerri Randall
When you know that you have negative information due to appear on your credit report, like a late payment or loan default, you may wonder how quickly it will actually be placed there.
Some people insist that creditors are required to report to the credit bureaus once a month. But it’s also possible that if you have no significant activity, positive or negative, the information on your credit report may not change during that time. So in some cases, the frequency depends upon your creditor and your level of activity.
Other creditors may update the bureaus daily, regardless of activity. For this reason, it’s possible for your credit report and even your score to alter slightly during a loan application process. You should constantly monitor and be in control of your activity at all times. If a lender, particularly a mortgage lender, rechecks your credit right before final approval or closing (which is highly likely in the current economy) and your score has changed due to newly-reported information, you could suddenly be denied.
Some creditors may wait until the last possible minute to report positive information, such as resolving a debt, but they’ll be quick to report anything negative. The lower your score is pushed, the more they’ll be justified in charging you for interest.
There is some information you can’t prevent from hitting your credit report, like a bankruptcy or being sent to collections. But if it’s a simple item like a late payment, some lenders will grant you leeway your first time. If it’s good information you want reported, simply call and ask. Your creditor is not required to report to all of the bureaus or even agree to your request, but sometimes they can be persuaded. There may be a fee involved, but if adding the information could significantly raise your score, it might be worth it. It’s your credit report; you just need to take control.
Categories: Credit Score Information
Tags: credit report information, negative information
July 8th, 2009 Written By: Kerri Randall
It may not come as a surprise to you that potential employers might check your credit report—it seems like everyone’s interested in your credit rating these days. So it seems fair to wonder if your boss checks your report after you’ve been hired. Depending on your line of work, the answer is probably yes.
If you hold a position that deals with money, valuables, sensitive information, and the like, your boss may periodically check your credit report. If your score is low or you continue to add negative history like late payments or defaulting on a loan, it may represent to your boss that you are not dependable. Right or not, you may appear more likely to steal cash or valuables in an attempt to catch up on debt, and if you are in a security or government position, your boss may not want to trust you with sensitive information.
No matter the reason, your boss does need your permission to run a credit check. If you are fired as a result of what is on your report, your boss is required to tell you so and provide you with a copy, an explanation, and the name of the bureau the supplied the report. You then have the right to file a dispute, particularly if the information used to justify letting you go was an error or otherwise incorrect.
The unfortunate fact is that by time the dispute is resolved, your old position may be filled. You might not find it to be a completely fair practice; hopefully your boss would consider outside forces and/or give you time to improve your score. Let this stand as one more reason to maintain a high credit score and check your credit report often: don’t let your boss blindside you.
Categories: Credit Score Information
Tags: employment credit score, job credi t score, low credit score
July 7th, 2009 Written By: Kerri Randall
If you’ve had to file for bankruptcy, you know the detrimental effect it has had on your credit score. Even if it is a recent development for you, you’re probably already wondering how you can have it removed from your credit report.
Bankruptcy Can Be Reported for 10 Years
You should know that most negative activity can remain on your report for 7 years, but bankruptcy can be reported for 10 years. Don’t fall for potential scams that insist they can have it removed earlier. These credit agencies are likely going the route of disputing the bankruptcy, claiming that the credit bureau needs to prove it. Well, if you really did file bankruptcy, that’s all the proof that is needed. It’s true that you can dispute information on your credit report, and that if the dispute is not responded to within 30 days, the bureau must remove it. But if the information is true, no matter how negative, it will not be removed until the necessary time has passed.
Bankruptcy is Removed Automatically
There’s nothing you need to do in order to remove bankruptcy from your credit report. It is automatically programmed to disappear after 10 years. However, if you reach that point and notice that it is still being reported, then you can contact the bureau and file a dispute to have it removed, and you’ll be likely to win at this point.
Close Accounts Related to Your Bankruptcy
Some of the accounts that were related to your bankruptcy may still be reported, and you can (and should) file a dispute to remove them if you know they have been closed or otherwise resolved. Especially once the bankruptcy has run its course, you want to remove any and all other evidence of it. Your credit score depends upon a positive history, and as long as you’ve improved your financial habits since filing bankruptcy, your score can go back up again. But letting those old accounts remain on your credit report is only pulling you down, so be sure to get rid of them.
Bankruptcy is an extremely negative option for resolving debt, but unfortunately, sometimes it becomes the only way out. It will take time, but remember that it is possible to come out of this event on the positive side. Make sure you pay your bills on time and, when possible, in full. Don’t push the edge of your credit limits (especially since you’re probably paying very high interest rates for the time being). Make a conscious effort to fix your habits, and you’ll fix your credit score, slowly but surely.
Categories: Establish and Rebuild Credit
Tags: recovering from bankruptcy
