Your credit rating is one of the most important tools in your personal arsenal, which may be used more often than you realize.
I recently read an online forum which said that a creditor charges off a debt once it’s turned over to collections. What’s more, I gathered that a person does not have to repay this debt and can write “cancelled” on any invoices received from a collection agency instead of paying the bill. Is this information correct?
Unfortunately, the Internet is often a source of misinformation. If you opt to write “cancelled” on a invoice for a debt you legitimately owe, you may find yourself being sued. If you’re already dealing with the fallout from past debts, getting sued will only further complicate your situation.
Your credit scores are prepared by FICO and other companies and are mainly based on your history of managing debts, such as whether you tend to make payments on time. Your scores play a significant role in your everyday life because the next time you apply for a loan or a credit card — or perhaps a new apartment or insurance —your scores could affect the final decision, including your costs.
Parents and family members may think they are simply lending a helping hand by co-signing a car loan or credit card application for a child. But they are, in effect, agreeing to pay back the debt themselves — and they often end up doing so.
The statute of limitations is a law that protects consumers when they are contacted by a collection agency about an old debt.
The statute varies from state to state. But once a debt passes beyond the number of years in your state’s statute of limitations, a debt collector no longer has the right to sue you for payment.
The credit card industry is undergoing a massive change as it switches to chip-based cards, and scammers are taking advantage.
Banks have been sending out new credit and debit cards that have an embedded microchip to meet an October 1 liability change deadline. But not everyone has received a new card yet: A September survey showed almost 60% of card users haven’t received a chip-enabled card.
While most major lenders and creditors report to at least one of the credit reporting agencies, there is no requirement to report, and not all companies do.
Attorneys general in 31 states have reached a $6 million settlement with the major credit reporting agencies Equifax, Experian and TransUnion to make changes in the way they address errors in consumer reports and how some negative information is added to credit reports.
There is already evidence that a new credit-scoring approach by Fair Isaac Corp. will provide a pathway to decent FICO scores for some consumers who currently don’t have traditional scores.
You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, email messages, and maybe even calls offering credit repair services. They all make the same claims: “Credit problems? No problem!”