Credit Repair 911

Statute of Limitations on Debts varies from state to state

2011-03-11T10:04:00.000-08:00

Statute of Limitations on Debts

Below are the State Statutes of Limitations for various kinds of agreements.

Oral Contract: You agree to pay money loaned to you by someone, but this contract or agreement is verbal (i.e., no written contract, "handshake agreement"). Remember a verbal contract is legal, if tougher to prove in court.

Written Contract: You agree to pay on a loan under the terms written in a document, which you and your debtor have signed.

Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The big difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note.

Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act

Each state has its own statute of limitations on debt - the amount of time the court will force you to pay a debt. The statute of limitations varies depending on the type of debt you have - credit card or loan - and is usually between three and six years, but is as high as 10 or 15 years in some states. Before you respond to a debt collection find out the debt statute of limitations for your state.

The Road to Good Credit

2011-03-11T10:03:00.000-08:00

So you know your credit score, now what? Brag to you friends? Compare it with your co-workers? Before you go announcing it to the world, get a better understanding of what it actually means. Remember, to effectively evaluate your credit score you’ll need a range as well. Just as you would if you were taking a test in school, without a range, a score is meaningless.

Like all other scoring models, credit scores have a range. The “credit score range” for the standard consumer fico score is 300 to 850, though other credit scores, such as the vantage score, range from 501 to as high as 990. Additionally, some versions of the Fico score, such as those used for auto loans/leases, range from as low as 250 to as high as 900.

Let’s start at the top of the credit score range and work our way down.

***Note that we’re using the Fico score range, which is much more relied upon than the VantageScore at the moment.

800-850+ Credit Score

A credit score of 800-900 is basically flawless credit. Though I’ve never seen a 900 credit score (readers have told me they have 900+ scores), scores of 800-850 are fairly common. An important thing to note here is that some consumers may have 800 credit scores the minute their credit profile is established, but without supporting credit history, the score will mean very little to banks and lenders. On the other hand, a credit score of 800-900 accompanied with years of solid history indicates that the borrower will be granted the lowest rate on everything from credit cards to auto insurance and mortgages. Scores in this bracket represent about 13% of the population.

720-799 Credit Score

A credit score of 720-799 is considered great credit, and will typically result in interest rates and approval rates that a credit score in the range of 800-850+ would yield. The only difference might be a few more pricing incentives at the 800-850+ range, and a more thorough credit check. But all in all, credit scores in this bucket are considered excellent and you really don’t need to worry if you scores fall in this category. In fact, roughly 27% of the population has a credit score of 750-799 alone.

680-719 Credit Score

A score in this bracket is considered good credit. Although it’s not perfect, you should still be able to qualify for most loans and auto or rental leases, although interest rates may be a little higher than those offered to borrowers with excellent credit. There will be situations where a credit score in this range will prevent you from getting certain types of financing, such as an A-paper mortgage loan or the lowest auto insurance premium, but it’s certainly not bad credit.

620-679 Credit Score

Credit scores from 620-679 are still considered “good” or “ok” by many creditors, though you may see further restrictions and fewer approvals when attempting to get a loan, lease, or a mortgage. Scores at this level are fairly common, and no reason for alarm. But it would be wise to evaluate your score and work to improve it. In this range, it is quite probable that you aren’t securing the lowest interest rates, and subsequently losing money as a result.

580-619 Credit Score

This is where “ok” and “good” turn to “bad”. Credit scores in this range are clearly below average, and you will have a difficult time securing a loan, or applying for a credit card. If you are able to secure financing, you’ll find higher interest rates for low credit scores. If your credit score falls in this range, you definitely need to evaluate your credit report and take measures to raise your credit score.Many consumers with credit scores in this bracket are considered “subprime” and may have to work with bad credit banks and lenders to secure financing.

500-579 Credit Score

Credit scores in this range are just flat out ugly. If you’ve got a credit score in this bracket, there’s a good chance you have a major derogatory mark on your credit report such as a collection, charge-off, mortgage late, a foreclosure, or a bankruptcy. There is no question that your credit is in need of serious credit repair. At this level, you must evaluate your credit and act immediately to turn things around. You’re clearly paying higher interest rates and making credit mistakes that will impact your life for years to come.

Below 500 Credit Score

Credit scores below 500 are the worst of the worst. To fall into this range, your credit report will definitely contain major derogatory marks, with very little positive data whatsoever. If your credit score is at this level, you may want to order a Repair kit from Creditrepair911.net. There’s a good chance you’ve got serious financial problems if your credit score is in this range. Start educating yourself immediately to alleviate your problems. So now you should have a good idea as to where you stand credit score-wise and what you need to do to improve things, repair things, or simply maintain your healthy financial lifestyle. You can do it yourself with our repair kit.

An Overview of Consumer Credit Counseling

2011-03-07T14:46:00.000-08:00

How Credit Counseling Works

The credit counselor analyzes your credit situation including number of accounts, balance, minimum payment, balance due, and any past due account. The counselor then considers your monthly income and bills. Using this information, the counselor puts together a debt management plan (DMP) for paying off your debts. The proposed plan is sent to each of your creditors for approval.

Once your creditors agree to the DMP proposed by your counselor, you begin making payments to the credit counseling agency. The credit counselor disburses payment to each of your creditors in accordance with the DMP. In most cases, your credit accounts are closed to future charges as long as you are on the DMP.

COSTS

A lot of credit counseling agencies claim to be non-profit. Even if the credit counseling agency says it’s non-profit, that doesn’t mean the services provided to you are free. In many cases there’s some kind of fee involved. Some agencies use your first payment to cover their fees, while others deduct a flat amount from your monthly payment.

You should never pay a fee just to obtain information about the company and services offered.

Do You Need It?

A consumer credit counseling agency doesn’t have any rights or privileges that you don’t also have. Anything a credit counselor can do for you, you can do for yourself. Even so, there are many people who enjoy the convenience of the services provided by credit counselors.

Consumer credit counseling can help if you aren’t sure how to negotiate a payment plan with your creditors. Some credit counselors have experience in working with creditors, they are sometimes able to negotiate better payment terms than you could on your own.

If you don’t think you will be disciplined enough to distribute payment to your creditors each month, it’s usually better to work with a credit counselor. That way, you are responsible for making one monthly payment to cover your credit card bills. The credit counselor does the rest.

What Next?

Should you decide to pursue consumer credit counseling as a solution for your debts, it’s important to choose a reputable credit counselor that will help you get out of debt. Stay away from companies that aren’t clear about their services and fees.

LaToya Irby, About.com Guide

For more information on how to repair your credit yourself, without paying enormous fees, please see us at CreditRepair911.