Closing Accounts and Your Credit Score

Your credit score is at the center of your financial universe. Creditors use your score to determine your level of risk as a borrower. If you have a poor credit score or inadequate credit history, you may only have access to the highest interest rates and terms on credit accounts. Once you've establish credit, the best way to keep your credit score up is to avoid closing your accounts. Credit Utilization Your credit utilization ratio is the amount of debt you have versus your total available credit. Generally, a 30 percent credit utilization...

Read More

What if a Debt Collector Won't Negotiate?

A debt collector who will not negotiate is playing hardball while insisting on full payment of the debt. Debtors who refuse to be intimidated can often force debt collectors to settle for less than the full amount of the debt. Debt collectors usually earn money on commission, and the more they collect, the more they make. However, that also works to the debtor's advantage, because the debt collector will earn nothing if the debtor continues to refuse to pay. That's why holding out for a settlement is an excellent tactic when the debt collector...

Read More

Things That Need to Be Done in Court After a Death

When a person dies, there are normally a number of specific things that must happen to close out the estate. In some parts of the United States, a probate court process is required only if the decedent's assets were at or above a specific dollar value; in others, no court process is needed if the decedent did not own any physical property. When court processes are needed, however, they generally follow similar steps. Probate Case A probate case is opened with the local court that handles probate in your state or county. The probate court...

Read More

How Long Can a Credit Card Debt Be Collected in the State of Maryland?

In the state of Maryland, the statute of limitations for credit card debt expires three years after it is written off by the original creditor. While it is likely your account could be sold many times over and attempts to collect made after the statute of limitations expires, you can assert your right of protection under Maryland state law and any lawsuit arising from a collection agency tossed out of court. Statute of Limitations At three...

Read More

Bankruptcy vs. Consumer Credit Counseling

Consumers who are over their heads in debt have several options for reducing or eliminating that debt. Two effective choices are bankruptcy and consumer credit counseling. Another option is debt settlement, in which a consumer negotiates a lower balance with his creditors and pays that full amount in one lump sum. Identification There are distinct differences between bankruptcy and consumer credit counseling. When a consumer takes part in a credit counseling program, the agency will try to make debt payments more affordable by negotiating...

Read More

How to Defend a Judgment With a Credit Card Company

You have few options for defending yourself after a credit card company wins a judgment against you. You can buy time with some legal maneuvers, but eventually you must pay the credit card company or risk garnishment of your bank account or wages. Illinois Legal Aid reports there is simply no way to avoid the debt if it is legally yours, making a settlement your best option for defending yourself and resolving the issue. Instructions 1 Consult with an attorney to determine if you have legal grounds for an appeal. Filing a "Notice of Appeal,"...

Read More

How Much Does Paying Off a Car Raise Credit Scores?

Since your credit score reflects how likely you are to pay back your loans, it's logical to assume that paying off your car loan entirely will raise your score. Paying off loans always helps your score somewhat; however, keeping up with your current bills is more important than paying off one bill. Make all your car payments on time and watch your credit score rise both before and after you pay off your car altogether. Debt-to-Credit-Limit Ratio Your debt-to-credit-limit ratio -- that is, how much total debt you owe compared to how much...

Read More

Steps to Take When Being Harassed by a Debt Collection Agency

You don't have to sit back helplessly while a debt collection agency harasses and threatens you. Some collection agencies do whatever it takes to collect a debt, which can include constant phone calls at your home or office. However, laws are in place to help you deal with collectors and stop harassment. Show Evidence of Debt Some debt collection agencies buy debts once an original creditor charges off the debt. Collection agencies attempt to recover these old debts, and they typically earn a percentage or commission on recovered debts....

Read More

Student Loans Legal Advice

Student loans are a huge problem for an inordinate number of American citizens. The payments overwhelm modest budgets, and often recent graduates are forced into taking certain professional positions out of necessity--not out of desire. If you are struggling to pay student loans, you do have some options when it comes to repayment. Cancellation Getting student loans canceled is quite difficult. Student loans are one of the only types of debt that are not forgiven or canceled as a result of a bankruptcy. Total cancellation can be available...

Read More

How Soon After Paying Off a Mortgage Should Your Credit Score Increase?

For many people, a home mortgage is the single-largest debt on their credit report. It seems logical, then, that paying off your mortgage in full will improve your credit score. However, your credit score derives from a complex algorithm that takes many factors into account. Paying off your mortgage has no direct effect on your score but can affect some things that make it easier to get approved for other financing. How Your Credit Score Works The three major credit reporting bureaus calculate your credit score based on an amalgam of details...

Read More

What Does a High Risk Credit Score Mean?

Fair, Isaac and Company are the architects behind your FICO Credit Score, which is used by lenders to determine your creditworthiness. Your score can range from 300 to 850 and depends on many factors, such as your payment history, the amount of debt you owe and the length of your credit history. Scores of 760 or higher indicate a high degree of creditworthiness, while lenders classify those with scores of 620 or below as high risk. Negative...

Read More

Rules on Wage Garnishment for the Head of a Household in the State of Georgia

If you are a Georgia resident who has fallen behind on debt payments, and you have made no attempt to resolve your debt delinquency with your creditor, you may face consequences more severe than collection calls and credit damage. Under certain circumstances, Georgia law permits creditors to garnish a portion of your wages to satisfy debts. Unlike other states such as Florida, Georgia does not apply separate garnishment rules if you are the head of household. Garnishment Authorization A private creditor cannot automatically garnish your...

Read More

What Is the Percentage of Debt You Should Be Below Your Credit Limit?

Credit cards allow you to buy items when you don't have the available cash, and paying back credit cards in full helps build a good credit score. Minimal use of credit cards helps keep balances under control. Some consumers charge excessively, and, as a result, they may have a lower credit score. Improving a score involves paying down debt and keeping debt below a certain percentage of your credit limit. Importance of Low Balances You should not underestimate the benefit of keeping credit card balances low. Various factors determine credit...

Read More

Self Help For Debt Reduction

Dealing with debt can be overwhelming, especially if you haven't really looked to see how much you owe. Finding out the truth can bowl you over. But if you're ready to adjust your ideas about money, get your finances organized into income, expenses and debt payment, and commit to a plan, you can get yourself out of debt. Get Debt Payoff Calculator A debt payoff calculator lets you list all your debts, amounts owed and interest rates. Some...

Read More

How to Stop Garnishment of Defaulted Student Loans

The U.S. Department of Education, which guarantees federal student loans, can garnish up to 15 percent of your disposable income without filing a lawsuit. The agency must, however, provide you notice of the garnishment and give you an opportunity to be heard if you request it. Stopping wage garnishment for defaulted student loans is difficult, but not impossible. The best protection against wage garnishment is to prevent a default. Instructions...

Read More

Will Applying for a Credit Card Lower my Credit Score?

Most credit card companies will check your credit reports when you apply for a card. The credit check is recorded as an inquiry on your reports--allowing other creditors to see that you have been shopping around for new credit. A large number of inquiries over a short time could cause your credit scores to drop, making it tougher for you to be approved for another credit card or loan. Hard Inquiry When a potential creditor pulls your credit...

Read More

What Can Be Done if a Parent Won't Pay Child Support in California?

All parents have the responsibility to provide care and support for their offspring. The parent with primary custodial care of a child must, however, obtain a court order to force the other parent to pay child support, otherwise the second parent has no legal obligation to do so. If a parent is not supporting a child in California, the custodial parent has several courses of action to take. Contact Local Child Support Agency California's...

Read More

When Sharing a Credit Card With Your Spouse Counts on Both Credit Reports

When couples get married, they face a range of choices about their finances. Choosing to get a shared credit card is a common decision but couples have options when it comes to sharing credit. The choices they make will determine what kind of impact sharing a card has on each spouse's credit. Credit Your ability to get credit is based on your credit report, a record of all your activity as a credit user. The report contains information such as your history with paying your bills on time, how long you've had your accounts and how much debt...

Read More

What Does Quarterly Billing Mean?

Quarterly billing means that you must pay for a product or service four times within a year, every three months. Therefore, it is easy to distinguish this type of billing from monthly installments or one-off payments. Despite the fact that it is not as widespread a method of payment as monthly billing, quarterly installments have advantages and drawbacks. Help with Unstable Cash Flow If you own a business whose income is not a steady flow,...

Read More

How to Collect a Judgment From the Self-Employed

Winning a judgment against a debtor is only half of the battle. The court will not automatically enforce the judgment for you; you must make arrangements to collect the money you are owed. Often, a judgment creditor can use wage garnishment to collect a debt. Since your judgment debtor is self-employed, explore other options. In some cases, the judgment debtor may voluntarily make payments. Otherwise, you must work with the courts and the sheriff's office to either enforce payments or seize assets to satisfy the debt. An attorney can help you navigate...

Read More

How Can I Track Down My Previous Address?

Previous address information is often required on a variety of applications. If you've forgotten this information, you can track down your previous addresses by viewing your credit report. In the United States, three major credit bureaus, Experian, Equifax and TransUnion, maintain and report credit information. You can request a credit report from any of these credit bureaus to view your previous address history. Instructions 1 Request a copy of your credit report from any of the major credit bureaus. You can request your credit report online...

Read More

How to Legally Discharge Your Unsecured Debt & Restore Your Credit Rating

Discharging unsecured debt and restoring your credit rating can either be relatively simple or a long and arduous process. It all depends on the methods that you use. The simplest method to discharge debt is to pay back the principal along with any interest or penalties. Other methods of discharge include bankruptcy, debt settlement, debt consolidation and waiting for the statute of limitations on your debt to expire. Instructions 1 Pay all debt balances in full along with any interest and penalties to discharge your debts. This is the most...

Read More

How to Get Loans Forgiven

Loan forgiveness is not offered to most borrowers. When you sign a loan contract, you are legally bound to repay your lender for the amount specified in the loan. Even a bankruptcy judge does not have the authority to completely cancel a debt. However, loans may be forgiven at a lender's discretion. The lender must agree to the terms of forgiveness and approve any actions taken by the borrower or court to dismiss responsibility to repay the debt. Instructions Loan Forgiveness Programs 1 Determine if your qualify for a loan forgiveness program....

Read More

Unsecured Credit Cards to Reestablish Your Credit

One way to improve a low credit score is to use what credit you do have responsibly. By obtaining an unsecured credit card, keeping your balance low and making your payments on time, you can significantly improve your credit score and improve your chances of getting more credit at better interest rates. Obtaining an unsecured credit card may be difficult if you have a low credit score, however. Unsecured Credit Cards An unsecured credit card is not backed by collateral, such as a savings account at the bank that issues the card. When you...

Read More

Definition of Debit Cancellation

The U.S. Internal Revenue Service (IRS) describes debt cancellation as the portion of a debt that is forgiven or cancelled by a creditor. The cancelled debt does not evaporate into the ether. Instead it becomes a part of what the IRS calls "taxable income"--a dirty word for most taxpayers. All items considered taxable income, including the amount of the debt cancellation, is taxed according to the IRS tax laws. However there are exceptions, as well as some information that you should be aware of. Types of Taxable but Cancelled Debt The...

Read More

How to Stop Payday Loan Harassment

If you owe a payday loan company money, youre probably receiving daily harassing calls. Cash loan companies provide a useful service. They offer easy approvals, and credit isnt a determining factor. Unfortunately, some people are unable to repay the money. This is when the harassing phone calls start. Instructions 1 Ask for an extended loan term. Short-term payday loans require repayment within two weeks. If you cant pay off the loan by the due date, the cash loan company may willingly extend your term. Youll pay additional finance fees,...

Read More

Credit Counseling Services Ratings

Consumer credit counseling services can help consumers enormously in sorting out debt and improving their credit; or they can be costly scams. Aside from the Better Business Bureau, the counseling services have no actual ratings but some are accredited and approved by outside agencies. According to MSN Money, inclusion in these accrediting organizations is conferred only when an agency has met criteria for certification as well as integrity and fair...

Read More

Does Unemployment Show Up on Background Checks for Employment?

Unemployment benefits help workers support themselves after losing a job through no fault of their own so that they have money coming in while they line up a new job. However, some workers worry that if they take unemployment benefits, their next employer will find out and refuse to hire them because of it. Unemployment benefits do not show up on credit checks or other background checks, although your new employer may be able to deduce that you received unemployment if he knows what to look for. Unlisted Wage Sources Credit checks do not...

Read More

Levels of Household Debt

Debt is a two-edged sword. While creditors may deny your credit applications due to insufficient credit history -- that is, too little debt -- they may also deny you because you have too much debt. They use specific equations to determine whether your current level of debt may make it difficult for you to make monthly payments. Average Household Debt Household debt includes debts such as personal credit cards, mortgage loans, auto loans and student loans of everyone in your household. It doesn't include expenses such as apartment rent or...

Read More

Oklahoma Garnishments While on Short-Term Disability Laws

If you fall behind on your income tax payments, alimony, credit card debt and other financial obligations, you may find that your paycheck, bank account and other financial accounts will be garnished in order to pay your creditors what you owe. In Oklahoma, however, certain income is protected from garnishment, including short-term disability income. Garnishment Basics Wage or financial garnishment is the legal process of seizing your bank...

Read More

Statute of Limitations on the Cancellation of Debt

Do not assume that a statute of limitations will ever "cancel" a debt that you owe. While your creditor may not be able to win a lawsuit against you, it can still ask you to pay the debt, and the debt can remain on your credit reports long after the statute of limitations on your debt runs out. Cancellation of Debt Creditors cancel debts for many reasons. Personal creditors, such as friends or family, may cancel a debt if they wish to make you a gift of their original loan, or because they do not want continued conflict over the debt. Credit...

Read More

Should I Use HELOC to Lower My Debt Payments?

Advantages of Debt Consolidation The interest rate offered on a HELOC, or home equity line of credit, is typically much lower than that on other forms of debt. In addition, you can consolidate all of your debt payments into one monthly payment and pay only interest during the "draw period," which is when you can borrow from the HELOC. Your Home as Collateral A home equity line of credit holds your home as collateral for the money lent to you. If you fall far behind on payments on your HELOC, the lender can foreclose on your home. In...

Read More

How do I Drastically Reduce Debt?

People who have found success in debt reduction have one thing in common, they simply stopped living beyond their means. Drastic reduction of debt requires drastic reduction of excessive spending. Those who are seriously determined to reduce debt find that consistency and simple common sense are the keys to financial freedom. Small daily spending choices as well as major purchases, add up to a cycle of lifestyle debt that can be extremely difficult...

Read More

How to Tell a Spouse About Hidden Debt

If you have hidden debt from your spouse, you may be afraid to tell him about it. Hidden debt can signal distrust and a lack of communication in your marriage. It is important to be open with your spouse about the debt you have. It can affect your credit score and ability to find a mortgage. It is better to come clean about the debt before your spouse finds out through other ways or you apply for a joint loan. Instructions 1 Gather all of...

Read More