Score Credit Reports

Archive for April, 2010

Not too many people realize the damaging effects of having a bad credit until they’re stuck in the actual situation. For instance, renting an apartment can be a big challenge for those with bad credit. If you think your credit report would not be questioned by a landlord, you’re mistaken. Apartment owners often check on an individual’s credit report before accepting him as tenant.

Does bad credit mean you can’t rent an apartment? Fortunately not! If you need a place to rent, there are still many options available to you. Here are few tips on how to get the apartment that you want regardless of bad credit.

Look for apartments that do not have strict policies on credit. Use the internet to search for apartments that do not have a credit check policy. You may also look at the classified ads of your local newspaper to find home rentals, condos or apartments that are more lenient in accepting tenants. If you know some real estate agents, they might also know some properties for rent who do not necessarily check on a person’s credit.

Get recommendations from reputable people. You may get recommendations from your bank, lawyer, employer, or former landlords as a proof of your credibility. The letter should state why your credit history has been tainted. If you’ve been through a difficult situation, you can try to appeal with the landlord’s consideration.

Seek a co-signer.

If you have a friend or a relative with excellent credit, you can seek their help to vouch for your credibility. Remember, having a co-signer means your co-signer will be held accountable to pay for your debts in case you default on your lease. If you’re going get a co-signer, make sure that he understands this condition before signing the agreement. In addition, respect your co-signer’s good will and make sure that you do not cause any problems for your co-signer’s credit.

Offer a bigger security deposit.

Expect that you need to put down a bigger upfront payment to make up for the absence of your credit. A higher deposit would give your landlord more security if he’s worried about the possibility of defaults. Some landlords have asked for up to 6 months in advance from renters that not only have bad credit, but have a history of being evicted from prior lodgings. If your landlord ask for such a hefty deposit, try to work out a payment program, Its not unheard that they will take 3 months down and allow you to pay the additional security over a certain agreed upon time period. Make sure you can make these payments, defaulting on these side agreements can mean immediate eviction.

Clearly, not having good credit to back you up does have its consequences. If you know that you have a bad credit problem, the best thing to do is try to improve your credit even before you start looking for a new place.

If you have unpaid debts with a creditor, pay it in full and request that a letter from your creditor stating that you have already settled the accounts reflected in your credit report. Better yet, if you know that you’ll be moving out soon, do all the necessary steps to settle your debts and make sure that your payments are properly reported to the credit bureaus. Do your best to boost your credit rating as early as possible so you can have more freedom in choosing the apartment you want.

Let’s be honest, the economy is a nightmare. No one’s job is safe, people are losing their homes, and relying on their credit cards to make ends meet. Credit card companies are feeling the pinch too, and are responding by settling delinquent accounts for a fraction of what is owed.

Why would they do this? Simple: collection activities cost credit card company’s money. They have to pay the person calling you to nag about payments, they have to pay for all the letters and notices. And they may never recover all the money you owe. So, when a customer offers a lump sum payment to settle the entire debt, many companies are jumping at the chance. Moreover, whatever balance is not covered by the lump sum, the credit card company just forgives. Which is great for consumers… in the short-term.

Aside from the damage to your credit (though the delinquent payments certainly are not any better), there is a problem laying in wait for you next tax season. If your credit card company forgave your debt, the IRS calls that taxable income, reported to the IRS on a 1099-C. Oh yes, if you settle your $25,000 Visa bill for only $5,000, the “forgiven” twenty grand is now considered income. So, if you are taxed at 15%, your tax bill will increase by $3,000. The increased “income” can even bump you up into a higher tax bracket!

(It is important to note that if your debt is mortgage-related and is forgiven, this may NOT qualify as taxable income, thanks to the Mortgage Debt Forgiveness Act of 2007.)

You get your credit card debt handled, only to find a brand new tax debt waiting for you. What a trade off, eh? Of course there are some ways to get around this. A title 11 bankruptcy can relieve you of the tax debt. Or you can claim insolvency (i.e. your total debts are higher than the fair market value of your assets). Neither option sounds very appealing.

One would hope that the government would see this problem as a major issue, given the large numbers of people currently dealing with overwhelming credit card debts. However, to date, no legislation on par with the Mortgage Debt Forgiveness Act of 2007 has been introduced. And with the inherent inefficiency of Congress, any new legislation would likely be too late to help the millions of struggling Americans with debt today.

ever asked yourself’How accurate are my credit check reports?’ if you are new to this process, you are not alone. Everybody has been in an identical scenario one way or another. Finding the company who will supply a correct and verifiable credit check should not set a problem. Your first stop is the internet. Do an easy research and get to grips with the agencies that provide credit check reports.

Get Credit Score and Report

There are three credit firms that offers credit history reports – Equifax, Experian and Trans Union. After you have decided which bureau to make your request, log-in to their website and complete the requisite application on the internet. Make sure that you provide accurate information. Blunders on your side will give you erroneous reports too.

sometimes, it takes about 30 days to process your request. When you received your report, go over it carefully. Review all the info stated in the report. If there are discrepancies, contact the agency and make them aware of the blunders. Inaccurate reports affects your credit score that’s the reason why you must pay attention to the details.

Another item to think about in the credit check reports is that not all creditors report to all 3 agencies. So, there’s a chance that your credit history from Experian will be different from that of Trans Union. There is no way to know the variance in credit score unless you order the reports from all 3 agencies. The process may look tedious but it’s far better to take the long route and ensure that you have your credit report done right.

in a few cases, folk get a rejection from the credit agencies. Most likely, this situation arises from unsound information. And one this occurs, you have to go through the method all over again. It is important to get all info done properly the first time to avoid all these inconvenience.

next time you ask yourself,’How do I obtain my credit check?’ consider the steps discussed in this piece. In summary, you’ve got to educate yourself about the credit companies and you also need to make sure that the data you submit to the agencies are factual and updated. Remember mistakes in credit reports when left deserted has repercussions in your capability to qualify for a loan and will also hurt your overall fiscal standing. It’s also vital to note that employers do take a look at credit reports. You do not need to be passed on a job opportunity because of an erroneous report, don’t you?

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