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Bankruptcy Types Explained

In the last post, we talked about how bankruptcy works, in general terms. In this post, we’re going to talk about who can file, why you would want to file, and what types of bankruptcy (chapters) are available.Technically, anyone can file for bankruptcy, but most people who file have far more debt than they can possibly pay. Filing for bankruptcy is not free, and if bankruptcy is not granted by the court, those fees essentially become wasted money. You may be able to find free consultations with bankruptcy lawyers in your area—make use of this service to see if a lawyer thinks you actually have a chance of success in bankruptcy court.

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10 Credit Myths

10 Credit Myths

As they say, ‘Knowledge is power.’ Many times people either act on false information or fail to act because they didn’t know what could be done to their benefit. This is the case in many areas of life, but on the top of that list is money. And in the money category, you will find lots of misinformation about Credit.
There is so much to talk about on the topic of credit myths that an entire book could be dedicated to it.

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After bankruptcy you can’t avoid credit forever

Bankruptcy isn’t the final nail in the credit coffin.It is nearly impossible to live without credit or at least an established credit history. Whether you like it or not it, credit will be needed in the future for one thing or another. Those who have filed either a chapter 7 or 13 bankruptcy are faced with the difficult task of reestablishing credit after the discharge of their old debt which is certainly more difficult than establishing credit the first time. Both types of bankruptcy will remain on the individual’s credit report for up to ten years and will serve as a huge impairment on anyone’s credit. Before new credit is established out of bankruptcy, people face suspicions by new lenders that they are permanently unable to effectively manage debt and therefore shouldn’t be able to acquire new lines of credit.Of course this is absolutely untrue.

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Additional Protection for Soldiers on Active Duty

 

Congress passed the Fair Credit Reporting Act several years ago in an attempt to smooth out some problems in the Credit reporting industry. The best known provision of this Act is one that permits Americans to receive a free copy of their credit reports from each of the three main credit bureaus once per year. So far, this provision of the Act has been a success. A lesser-known provision of the legislation is one that is intended to protect active duty military personnel from being victimized by identity theft while they are out of the country.

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5 Ways Poor Credit Scores Costs You Extra Money

Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don’t know about your credit could be costing you money. Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.

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5 steps to bankruptcy recovery

In recent posts, we’ve talked about what bankruptcy is, who can file, what kinds of bankruptcy exist, and how one gets started. Now let’s talk about what happens after a bankruptcy. First, the order of the court is executed, whether that involves withholding of pay, liquidation of assets, or some other action. Next, your credit score is impacted.

This impact is likely to be very severe. People who successfully file for bankruptcy will find that a number of things that used to be easy are well beyond their reach: applying for home and car loans, some employment opportunities, and lines of credit with low interest rates or no fees. This can make getting back on your feet something of a challenge. Here are some tips:

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5 Most Common Ways to Hurt your Credit Score

 

Whether a consumer has an abysmal credit score or a fantastic one, the reduction of overall credit availability over the past few years has raised the standards across the board for credit score requirements. What was once considered a great score now doesn’t seem too great as lenders are requiring even stronger credit histories and in most cases a greater minimum score up about 20-40 points. Not only have minimum scores risen but also the method in which the Equifax, TransUnion, and Experian formulate their FICO scores has changed and continues to change.

 

 

There are five ways consumers consistently kill their scores, a few of them most people are unaware are making such a significant impact on their scores.

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10 Vital Questions Before Applying for a Secured Credit Card

 

Secured credit cards are a great way to establish new credit as well as building new credit after a bad run crushed your credit score.Especially after bankruptcy your reestablishment of credit is extremely important to show future lenders you have learned from your mistakes.

 

 

1.What exactly is a Secured Credit Card?

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10 Simple steps to creating and sticking to a budget

 

      1. Understanding the Necessity of a Budget

 

Even the most savvy of spenders need a budget. Keeping on top of your bank account to avoid overdraft fees does not count as a “budget”. Even if you are able to spend your money wisely and keep all of your bills in check, a budget is the necessary first step to establishing a long-term savings plan for those rainy days of even more importantly, retirement.

 

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10 Credit Myths

As they say, ‘Knowledge is power.’ Many times people either act on false information or fail to act because they didn’t know what could be done to their benefit. This is the case in many areas of life, but on the top of that list is money. And in the money category, you will find lots of misinformation about Credit.

There is so much to talk about on the topic of credit myths that an entire book could be dedicated to it.

Myth #1: I’m a complete financial loser for getting myself into this mess.


Fact: It may be true that you’re responsible for getting into debt, but that doesn’t make you a loser. In fact, it may not be your fault at all. As long as you start working on becoming more knowledgeable when it comes to finances, you will ultimately find success in controlling your debt.

Myth #2: Credit is what got me into this mess.


Fact: Spending is what got you into this mess (debt). Credit was the means to spend. If your problem is spending, then you very well may have spent all your cash. However, credit cards may make it easier to spend.

Myth #3: There’s nothing I can do about it now. My credit is destroyed forever!


Fact: As long as you work, starting today, to rebuild your credit, you’ll eventually get it under control. Rebuilding your credit means: (1) Paying on time; (2) Looking for better credit options; and (3) Learning more about money and credit.

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10 Best Tips You Can Use Right Now

We've all heard horror stories about fraud that's committed by someone stealing a name, address, Social  number or . Here are 10 suggestions you can take to help protect yourself.

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What Is Considered Identity Theft?

Plainly put, Identity Theft is when anyone uses your name, social security number, credit card information or any personally identifying information as their own to commit a crime; including fraud. Identity theft takes many forms in the day and age of technology. It can range anywhere from someone simply verbally pretending to be you all the way to a complete theft of an identity including your social security number and credit history.

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What is the Credit Repair Organizations Act?

The Credit Repair Organizations Act is a relatively new piece of legislature that is intended to protect consumers from predatory practices of companies masquerading as advocates for those struggling with debt.I wouldn’t go as far to officially call these guys con artists, but they absolutely have put an ugly black eye on the credit consulting industry.The prevalence of these detestable organizations called for the Federal Trade Commission to thankfully put into effect the Credit Repair Organizations Act.

 

 

What are the rules of the Credit Repair Organizations Act?

 

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What repossession means for your credit

Car repossession is a real nightmare. No really, it might be worse than you think. It can lead to paranoia, loss of job and sleepless nights. Sounds like one of those bad prescription drug commercials doesn’t it? If you’ve been through repossession you’re probably shaking your head in agreement as you read this right now.

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What you need to know about the Fair Credit Reporting Act

In a perfect world we would all have enough cash on hand to pay for everything we need up front. Obviously this is not reality and in one-way or another we all need credit. Whether it comes to financing a new car, buying a home or even simply having the basic necessities like water and power in your home, businesses will want to pull your credit to evaluated and be sure that you would make for a reliable customer. In the past, a consumer had very little control over how businesses would perceive them based upon their credit scores. Thanks to the Fair Credit Reporting Act we now have the power to understand, monitor, correct and control our credit information.

What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act was passed to even the playing field between creditors and consumers. When consumers accept credit from a business, that consumer is essentially giving the business the power to make or break their credit history and affect all financial avenues of their life. We all make mistakes, and the Fair Credit Reporting Act allows us to manage and contain these mistakes. There are several different aspects of the Act but most importantly it gives consumers the power to control their financial past and future.

How do I know what information is being reported about me?
As of 2005 you have the ability to pull your credit information once a year at no cost and at no penalty to your credit score. To do this simply visit annualcreditscore.com and answer a few questions to have all of your current credit information displayed. Additionally any time that you apply for new credit or have any company, landlord or anyone else pull your credit report, you have the right to receive a copy of that report at no charge. As of currently a credit history is required to be shared, not a credit score; this you will typically have to pay for.

Is there anything I can do to fix wrong information?
If you receive your credit report and discover inaccurate or fraudulent information, the Fair Credit Reporting Act gives you the right to dispute these items. The quickest and most effective way to go about this is to submit a dispute letter to the company reporting the item as well as a letter to each of the three credit bureaus. These days, Experian, Equifax and TransUnion are converting this process to an online system to speed up this process. According to these new laws, your concerns must be acknowledged and researched in a timely manner. Once the company in question acknowledges a mistake be sure to have an official letter on company letterhead sent to you for your records, and be sure to send copies to the three credit bureaus as well.

I made some credit mistakes in the past, will these stick with me forever?
Thankfully no! Every derogatory item has a maximum time it is allowed to appear on your credit report. The lifespan of a 30-day late payment is different from, say, a bankruptcy but they each do have a specific timeline they are able to affect your score. Be sure to check the laws in your state as the timelines differ depending upon where you live. As soon as these derogatory items expire, be sure to have them removed. It’s your right!

Can just anyone look up my information?
Absolutely not. Your information is yours and only you have the right to share it with others. Your credit report will tell you each and every inquiry made on your credit report as each inquiry has the capacity to hurt your score a few points at a time. If you see any suspicious items on there, be sure to inquire as well. The Fair Credit Reporting Act also has given you the right to “opt out” of those obnoxious “pre-approved” credit offers that clog your mailbox.

 

 Be sure to visit www.ftc.gov/credit for more information on how to protect your credit score and for more information about the timeline for derogatory items on your credit report. Call Praxis Credit Consulting for your free consult go over how this will effect you.

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Why Your Credit Report Matters

When you apply for a Credit Card or loan, the financial lender will automatically examine your Credit report. It will then formulate a credit score for you and either accept or decline your loan or credit card application based on that score. So what is a credit report and how do you find out what yours says?

Whenever you pay your bills or repay loans, the Credit bureau is essentially watching you. The credit you have on hand, the monthly debts you’ve accrued, and other miscellaneous financial information, is all collected by Credit Bureaus. Even your record for paying off your Sears credit card is on file! The bureaus sell this information to financial institutions, which use it to determine if you are a good candidate for a credit card or loan.

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DIY Credit Repair? Don't do it!

 

Some things should be left to the professionals; Credit Repair.

 

These days everyone from the mother of the kid you babysit, to the human resources guy at your interview, to your mortgage lender has you under his or her credit analysis microscope. Now more than ever it is important to have your credit in check to be sure that it represents you in the best possible light and to show you how you’d actually like to be seen. If you’re taking the time to worry about your credit you’re likely a responsible person with maybe a few mistakes in your past. Life is about learning from our mistakes and moving on, but unfortunately our credit isn’t quite as forgiving.

 

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For an FHA or VA loan, do credit scores matter or not?

 

Both FHA (Federal Housing Agency) and VA (Veterans Administration) are types of loans secured by the United States, that’s for sure. But in order to get one of these loans you have to be approved by a bank or mortgage company first. This essentially is what makes the home financing process so difficult! Let me see if I can break it down.

 

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How can I get out of my parents’ house?

 

Mom and Dad are great, but not necessarily the best roommates. Even if you have the best relationship imaginable with your family there are certainly disadvantages to still crashing in your childhood bedroom. It’s a little hard to bring over a special new friend on Friday nights and you can kiss any prospect of privacy goodbye.

 

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Considering a Store Card for the Holidays?

 

Though the Christmas and holiday decorations have been slowly creeping up on store shelves for the past couple of months, the tinsel and evergreen is now front and center in just about every store. The holiday season is upon us! Everyone’s budgets are a bit tight this year but we still have all those gifts to buy no matter what the economy has to say about it. You’ll probably be tempted the next time you come face to face with a cashier, “would you like to save 15% by applying for a –insert store name here – card today?” Normally you’d just brush off this sales pitch but today that 15% and a deferred payment is sounding pretty tempting. Don’t do anything rash, wait a minute!

 

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