Insufficient Credit References

Companies want to see how responsibly you use credit before they extend new credit lines to you. This policy makes opening accounts difficult if you do not already have some credit references. An insufficient credit history is problematic, but you can use certain account types to build up some references and increase your access to loans and major credit cards. Importance Sufficient credit references are important because of the way in which...

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How Does a Credit Arrangement Affect Your Credit?

Credit arrangements, such as debt restructuring and debt arrangements, are plans your creditor may offer you if you are having issues meeting your financial obligations. The creditor is not obligated to create an arrangement for you, but in many cases the creditor prefers to work with you instead of losing the account to default entirely. Another credit arrangement, a debt management plan, is administered through a third-party company which works with your creditors directly to make a debt payment plan you can keep up with. Credit effects from...

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Legal Steps to Garnish Wages

Creditors often use wage garnishment as a final means to collect on an unpaid debt. The legal steps for creditor debt garnishments differ from those of federal and state agency debt. The exact procedures a creditor has to take before garnishing an individual's wages can vary by state laws. Filing Suit A creditor has to file a lawsuit against an individual before a wage garnishment can begin. The creditor often hires a lawyer in the individual's state to carry out the lawsuit. The lawyer will file a Request and Writ for Garnishment at a...

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Christian Principles for Getting Out of Debt

Getting into debt is something that can happen to anyone, Christian, or non-Christian. For Christians in particular, owing money, or being without is not a state that's encouraged by biblical principles. Debt is a trial, very much like other trials encountered in our walk with God. Gaining the right perspective on what it is, and how to handle it is an important aspect of our faith. Identification Living as a Christian is a lifestyle, built...

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How to Repair Your Credit in 30 Days

Maybe you have more medical bills than you can handle, or you have been laid off. Whatever the reason, you may have been late with your payments and that has damaged your credit score. That may have hurt your chance to new credit because it is a major factor that most lenders use to make credit available. However, there are several ways to repair your credit in only 30 days so you'll have a higher credit score, which will probably enable you to borrow...

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What Does a Credit Report Tell You?

Your credit score is one of the most important numbers to your personal finances regardless of whether you know your score or not. Individuals can order one credit report for free each year from each of the three major credit reporting agencies, Experian, Equifax and TransUnion. A credit report is a record of your credit activities. Personal Information Credit reports contain personal identifying information such as your name, previous names, address and previous addresses. The personal information included in a credit report is compiled...

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Short Sale Exit Strategy

A short sale is one way out of a home you no longer wish to own. It can be an effective exit strategy, but does present some risks. You could end up owing your bank or mortgage company tens of thousands of dollars for the balance remaining after the short sale, and your credit score could drop if you missed payments waiting for the short sale to be approved. Despite that, many people consider a short sale preferable to foreclosure, and it should be considered if you must leave your home and have no other exit strategy available. Definition...

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Debt Servicing Ratio

The debt service ratio, also known as debt service coverage ratio, is a figure used by investors and lenders to ascertain a company's ability to handle debt. An analyst reviews the company's balance sheet and income statement and uses the information to calculate the ratio. If the ratio is unfavorable, the company is a higher financial risk. The Formula Calculate the ratio by dividing income by expenses. The income portion includes the sum of net profit, interest expense, depreciation and amortization. The expenses portion includes the...

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Is a Student Loan Debt Consolidation Loan Right for You?

Student loan consolidation is a way to combine more than one existing student loan into a single loan that is handled by one lender and carries one interest rate. This provides convenience for the borrower and might also lower the monthly payment amount, which can prove helpful for budgeting purposes. Whether or not student loan debt consolidation depends on a combination of whether or not you meet the criteria to receive such a loan and if the new terms of the consolidation will fit within your financial plans. Time Period If you are currently...

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Am I Liable for My Mother's Debt?

As a general rule, children are not liable for the debts their parents incur. Thus, in most cases, creditors cannot legally pursue you for payment of accounts your mother defaulted on--even if she cannot afford to pay. If you and your mother share accounts and financial obligations, however, creditors can sometimes hold you responsible for paying off your mother's debts. Co-signed Debts If you co-signed a loan for your mother and your mother stops making payments on the account, the lender will come to you demanding payment. Individuals...

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How to Make Money from your Debit Card

Almost everyone has credit cards however most people do not make money using them. I will give you tips to make money using your debit card. Instructions 1 Debit cards are as much a part of life as credit cards, most people do not use cash anymore. You might as well take advantage of your debit card usage and make some money from it. 2 Many debit cards will pay you a percentage cash back when used in stores to buy items. Most pay between...

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Debt Solutions to Reduce Debt

With a volatile credit market it is hard to know when exactly you may run into debt problems. It can happen to almost anyone, no matter how large an individual'income may be. There are several ways to recover from bad debt or to make monthly payments more manageable. CCC Consumer credit counseling (CCC) is a form of debt counseling that helps educate consumers on how to avoid debts that can no be repaid. Having CCC guidance can help you lower your monthly payment as well as lower your interest rates and remove late fees from your account....

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Letters to Fix Your Credit

Damage to your credit report from negative trade lines, missed payments and other derogatory information can haunt you for years -- leaving you subject to application denials and high interest rates. Fortunately, you can mitigate the credit damage you suffer and improve your credit score by working to rid your report of the information causing the damage. Dispute Letter The Fair Credit Reporting Act notes that consumers who disagree with the information within their credit reports can dispute that information with the creditor that originally...

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How to Handle Being Sued for Old Credit Card Debt

America's total consumer debt is more than $2.44 trillion, according to creditcards.com, which adds that the credit card default rate as of May 2010 stood at more than 11 percent. Individuals who default on credit agreements run the risk of poor credit ratings and eventually lawsuits. If you are being sued for old credit card debt, there are steps you can take to protect yourself and achieve the best possible outcome. Instructions 1 Check...

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How to Stop Consumer Credit Card Offers

Information gathered from the three national credit reporting bureaus (Equifax, Experian and Transunion) results in credit card offers being sent to you in the mail. If you want to stop it, you will need to notify the national credit reporting bureaus that you no longer wish to receive such offers. The FTC has provided authoritative information on how you can do this, but you should be aware that it may take as many as 60 days before you stop receiving these credit card offers. Instructions 1 Call the Opt Out Prescreen Hotline at 1-888-5-OPTOUT....

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What Is Consumer Collections?

Consumer loans consist of auto, boat, credit cards and signature loans. If you have loans of these type, and they fall past due, they could go to the consumer collection department, which is responsible for the collection of overdue consumer loans. Function Consumer collections can consist of a department within the original lender's facility. This would be an in-house collection department, which will send letters and make phone calls when you are behind on your consumer loans. Significance When an in-house collection department...

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How to Better Your Bad Credit

Like a rain cloud over your head, bad credit can follow you everywhere. It can affect your ability to find employment or buy a home, and may even lead to wage garnishment. However, you can climb out of the debt trap with firm determination and strong willpower. You must stop spending on frivolous items, but if you can stay firm, you could soon find yourself living a life free of debt stress, maybe even in the home of your dreams. Instructions Know What You Owe 1 Remove your credit cards from your wallet and place them in a plastic container....

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How to Read a Credit Report in Canada

Having a credit report is one thing, but interpreting it correctly is another. Everyone should be aware of the current state of their financial affairs, and much of that information is contained in the reports from the three bureaus in Canada that receive a gigantic amount of information about you: Equifax Canada, Trans Union Canada and Experian Canada. To get a complete picture of your finances, you must look at your reports from all three bureaus. These reports divide your information into four parts: identification, history of your credit, information...

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Can a Joint Bank Account Be Garnished in Texas?

Bank garnishment is an aggressive method a creditor can use to recover unpaid debts that you owe. It involves contacting your bank to demand that the account be temporarily frozen, which means that you can deposit money into the account but cannot withdraw funds. The bank then forwards any nonexempt funds to the court to pay your creditor. Although Texas law prohibits the garnishment of your wages unless you agree in writing, a creditor can garnish your bank account in Texas without your consent. In some cases, it can even garnish funds held in...

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South Carolina Default Judgment Laws

Judgments are granted when creditors or individuals you owe request monetary relief if you have not paid your debt to them. Judgments are sometimes handled in civil court and can even be granted if you do not answer the creditor's complaint to the court. Term of Judgment In South Carolina, judgments are effective for 10 years. Once a judgment is filed, the judgment attaches to your property and name and must be paid to purchase or refinance...

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What to Do When an Unauthorized Debit Is on an Account?

Most Americans know that monitoring their credit reports is important for financial health. However, the same can be said for your own personal accounts. Whether you complete online banking or receive statements each month, it's critically important to be cognizant of all transactions and debits on your savings and checking accounts. If you do find an unauthorized debit, you must know the process for rectifying that charge. Catch It Early ...

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How to Compare Secured vs Prepaid Credit Cards

People who are unable to get it a traditional credit card look to either a secured or prepaid credit card as an alternative. Although some people use them interchangeably, consumers must be aware that there are differences between a secured credit card and a prepaid credit card. Here are a few things to consider when comparing secured and prepaid credit cards. Instructions 1 Compare the funding mechanisms. A prepaid credit card is also known...

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What Happens During a Credit Check?

A credit check can be an intimidating experience even for those with excellent credit. No matter what your credit score may be, it's natural to worry if you have some negative mark that can keep you from getting the house or car you want. Understanding the importance and the process of a credit check can help you to understand what you need to do in order to pass credit checks. Importance of Credit Checks Your credit history is one of the most important pieces of your adult life. With a solid history, you can access the best offers from...

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What Happens If I Use a Credit Card While Enrolled in a Debt Management Program?

Debt management plans are effective ways for consumers to get back on track financially. Although card accounts that are included in a DMP are closed upon enrollment (and rejected when presented for payment), a borrower may still need to use credit. Usually, all debts must be included in a plan, but exceptions can be made. How Debt Management Plans Work In exchange for reduced interest and fees, borrowers who participate in a DMP must agree...

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Tips on How to Reduce Debt Quickly

Many people find getting into debt easy, but getting out exceptionally difficult. While paying off your debt may seem like an uphill battle, with careful planning and goal-oriented saving, you can reduce your debt rapidly and achieve this enviable debt-free financial status more quickly. While paying off your debt will never be an easy process, it is something that you can accomplish. Cut Housing Costs For many, housing costs represent the bulk of their monthly bill obligation. If much of your monthly earnings are already tied up in paying...

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Can a Debt Collector Buy a Debt That Has Been Charged off?

A charge-off is an internal accounting term that lenders use to describe loan accounts they consider noncollectable. Credit card companies usually take the action after accounts are about six months behind, but other lenders may act earlier. After charge-off, lenders may agree to sell charge-offs to debt collectors. Some debt collectors purchase charge-offs in a bundle for cents on the dollar. After purchasing a charge-off, the debt collector can seek payment in full from the debtor. Considerations Original creditors will not negotiate...

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Credit Report Interpretation

Knowing you should monitor your credit report and actually doing it are sometimes two different things. This is especially true if you are looking at your credit report for the first time and it seems to make little sense. However confusing your report may look, it is essential that you take the time to learn the fine art of credit report interpretation, both to ensure the accuracy of the information it contains, as well as protect yourself from...

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The Effects of Credit Card Debt Counseling or Consolidation

Credit counseling and debt consolidation are two methods a consumer may use to develop strategies to get out and stay out of debt. Each has different effects on the consumer's life. Credit consolidation streamlines his finances by creating a single monthly payment to his creditors and credit counseling teaches him ways to budget and manage debt on his own. Credit Score Impact According to debt management company Consumer Credit Counseling Services, a popular misconception about debt consolidation is that it hurts your credit score. Consolidation...

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How To Pay a Civil Judgment?

Because a civil judgment can reduce your credit score and remain on your credit report for up to seven years, paying the judgment is likely a top concern. Ignoring a judgment doesn't remove the problem. Rather, this negative remark can make it harder for you to acquire different types of financing. Fortunately, there are several ways to pay a judgment and restore your credit rating. Instructions 1 Write a check for the full amount. If you...

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Can Debit Cards Establish Credit?

Perhaps you are considering using a debit card. Many people use debit cards to make all sorts of purchases every day. Debit cards are quite popular because you can use them to buy clothes, food and other essential items. Read on to learn more about debit cards and to find out whether debit cards can affect your credit history. Significance Many people today use debit cards to make purchases, pay bills and to access money from an ATM (Automated Teller Machine). However, it is important to realize that debit cards do not operate in the same...

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How to Follow Up a Dispute Letter

If it has been thirty days since you disputed a debt and you still have not received a response from the creditor, then you should follow-up with that creditor as soon as possible. It is common for creditors to become overwhelmed with disputes, and sometimes dispute letters get overlooked. However, sometimes creditors simply ignore dispute letters because they do not want to spend time trying to validate a debt. Learn the proper way to follow-up...

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I Need Help for Me to Payoff My Debt

Debt is problematic financially because it reduces the amount of disposable income you have for necessities, saving for the future and emergencies. Typically, individuals and organizations won't pay your debt off for you, but it's possible to get financial assistance in other areas like utilities so that you can put more of your own money into debt payments. Debt counseling and negotiation also helps restore your financial footing. Negotiation...

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Grants for People in Debt

Grants are available for a variety of purposes, from government agencies, to nonprofit and for-profit businesses. The general intention of a grant is to pay for work that's used to improve the common good. Although it's tempting to believe that there are grants available for the purpose of repaying personal debts, unfortunately, it's not the case. Don't despair; there is help available for those in need. Risky Business Borrowers should not...

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How to Negotiate a Debt Lump Sum

Lenders view delinquent debt --- especially debt that's over 120 days late --- as bad debt and charge it off for tax purposes. This debt is then sold to a collection agency that tries to collect the debt. Unpaid debt and charge-offs leave a stain on your credit report that lasts for seven years. However, settling the debt for a percentage of the amount owed --- before or after a charge-off --- can soften the blow to your credit report and eliminate the harassing collection calls and letters. Instructions 1 Order a copy of your credit report...

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List of Credit Report Companies

Creditors make regular reports about their customers to the credit report agencies. These reports include everything from timely payments to missed payments and charge-off accounts. The credit bureaus compile this information into a single report about an individual and use it to determine a credit score. Other lenders looking to extend credit, employers and landlords request this score from the credit reporting company to determine a person's credit...

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