The most common creditor calls typically come from credit card companies and third-party collection agencies, especially when payments are late or accounts have gone into default. These collectors often call multiple times a day, seeking payment in full or a negotiated settlement. Medical debt is another major source of collection calls, particularly after hospital visits […]
Bankruptcy can have a serious impact on your credit, but it doesn’t necessarily “destroy” it for 10 years. Here’s a breakdown: How long does bankruptcy stay on your credit report? Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. Chapter 13 bankruptcy stays on for 7 years from the […]
Ensure Your Credit Report is Accurate After bankruptcy, some creditors might fail to update your accounts properly. That can hurt your credit score even more than necessary. You want to make sure: All debts discharged in bankruptcy show a $0 balance They’re labeled “included in bankruptcy” (not just left as “delinquent” or “charged off”) No […]
Rebuilding your credit score to 720 or higher after filing for Chapter 7 or Chapter 13 bankruptcy takes time, strategy, and disciplined financial habits. Here’s how you can start the process effectively: 1. Review Your Credit Reports Get free copies of your credit reports from AnnualCreditReport.com. Check for errors, such as discharged debts still marked […]
Carrying a high credit card balance after bankruptcy happens for a few key reasons, most of which come down to misunderstanding credit utilization, financial struggles, or bad habits. Here’s how it happens: 1. Misunderstanding How Credit Works Many people believe that using a high percentage of their credit limit helps build their credit faster. In […]
One late payment can drop your credit score by 40-100 points, even after rebuilding. Your payment history makes up 35% of your score, the biggest factor. Even if it’s just one day late, credit card companies and lenders may report it. A single late payment can stay on your report for 7 years. The best […]
Yes, vehicle repossession debt can lead to bankruptcy if it creates an overwhelming financial burden. Here’s how: Deficiency Balance – If your car is repossessed and sold at auction for less than what you owe on the loan, the lender can pursue you for the remaining balance (deficiency balance). This can be a significant debt, […]
Cash advance loans aren’t necessarily scams, but they can be risky due to high fees and interest rates. Here’s what you should watch out for: Legitimate Cash Advance Loans Bank or Credit Card Cash Advances: Many banks and credit card companies offer cash advances, but they often come with high fees and interest rates. Employer-Based […]
Credit counseling is a service that helps individuals manage their finances, particularly when dealing with debt. It is typically provided by nonprofit organizations or financial experts who assess your financial situation, provide budgeting advice, and offer strategies to improve your credit health. What Credit Counseling Includes: Budgeting Assistance: Helps you create a realistic budget to […]
Credit counseling is a useful tool for many people struggling with debt, but it is not always the best solution. It may not help if your debt is too large to be repaid within a reasonable time, your income is insufficient to cover even reduced payments, or your financial hardship is long-term and unlikely to […]
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