If I’m going bankrupt anyway, can I max out all my credit cards first?
Even if buying things that you never intended to pay for really worked, you’d have to wonder about the ethics of the idea. You don’t need to wrestle with your conscience, however, because bankruptcy courts are wise to such a plan. They decide which debts to discharge, and you’ll still have to pay for last-minute spending sprees.
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What exactly is bad credit?
There are numerous types of credit report problems that would cause a lender to reject your application for a loan. Such problems include: missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years, or not paying your taxes. Other black marks on a credit report include a judgment filed against you (perhaps for non-payment of spousat or child support) or any collection activity.
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What can I do if I am denied credit?
If your application for a credit card or loan Is rejected, the federal Equal Credit Opportunity Act requires that the company that rejected your application provide a written letter that explains why credit was denied. The company must also tell you which credit bureau provided your credit report. Send a written letter to the bureau within 30 days of your denial and request a copy of your report. They must provide it free of charge if you request it within 30 days of being denied credit.
If the credit report contains errors, the bureau can explain how to have the mistakes corrected.
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Can bad credit keep me from getting a home?
Credit problems such as a missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years, or not paying your taxes can make it difficult to get a home loan. If you build a clean record for six months to a year, however, you may be able to show that you have come through difficult times but are now a good credit risk.
If you can’t get a conventional home loan, you may want to look into other options, such as a lease-option, or a seller-financed loan.
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How bad is a previous foreclosure on credit?
A property foreclosure is one of the most damaging events in a borrower’s credit history. In terms of the effect on credit history, a deed in lieu of foreclosure or a short sale is not as adverse an event as is a forced foreclosure.
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How long does bankruptcy stay on my credit record?
It depends on the type of bankruptcy you file for. A Chapter 13 bankruptcy usually stays on your credit record for seven years. A Chapter 7 bankruptcy can stay on your credit record for 7-to-lO years.
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If I’m in financial trouble, can I renegotiate my debt with my creditors?
Renegotiating with your creditors can help you buy more time or settle your debts when you can’t keep up with your bills. Be honest and explain your situation to your creditors, and they may allow you more time to pay, drop late fees, or even settle for less than the full amount owed. Creditors would rather settle than spend money trying to collect -- and possibly get nothing.
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What can I do if my creditor won’t work with me to settle a debt?
If you make a proposal to a creditor to settle your debt but the creditor rejects it, you may want to find someone to help. A Consumer Cedit Counselling Services (CCCS) counselor can intervene on your behalf. Or, if you are in serious debt trouble, consider hiring a lawyer. The fact that you have a lawyer may get the creditor’s attention. They would rather settle with you than have you declare bankruptcy, leaving them with little or nothing.
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Why do thieves steal other people’s identities?
Thieves steal personal identities so they can buy things, commit crimes, and sometimes even get married without having to pay the consequences. See the Federal Trade Commission Web site for more information about identity theft.
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How can someone steal my identity?
It can be ridiculously easy. All an identity thief has to do is get some personal information about you. Some thieves get started by being friendly and asking the victims and the victims’ family innocent-sounding questions, such as “Where were you born7’ Others may steal your wallet, go through your trash for old discarded financial records, legally read official court records of your divorce proceeding or steal your mail. Still others may craft official-looking e-mails and trick you to answer them. Dishonest employees have access to credit bureau records. A friend, a relative or a roommate could steal your identity by getting information about you in your own home.
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What’s the first clue that someone may be trying to steal my identity?
Your first clue may be a letter or call from a collection agency or store, wanting payment for goods you’ve never heard of. To prevent that scenario, keep an eye on your credit history You can do this with a monitoring service, such as Privacy Guard They can notify you whenever someone applies for credit in your name or checks your credit history, so you can see if the activity is legitimate.
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Do I have to pay bills that identity thieves run up in my name?
Thanks to federal credit fraud law, you don’t have to pay more than $50 in direct damage from identity thieves. Credit card and other companies that wrongly extend credit in your name must make thief pay up, or take their losses, minus $50 they could ask from you. (Many creditors never ask for that $50.) Identity theft will cost you enough indirectly, from credit damage and embarrassment to the time and money you’ll have to spend fixing your credit record and convincing creditors that you have been wronged.
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How can I stop an identity thief and get my good credit back?
• First, report the identity theft to local law enforcement authorities, including the police, postal inspectors, and the Secret
Service. Identity theft is a federal crime.
• Next~ send a copy of the police report or other documentation to all banks and companies where your name has been used
fraudulently.
• Contact the fraud departments of the three major credit bureaus to get copies of your credit report and to have fraud flags
and statements added to your reports. The reports are usually issued for free if you have been the victim of credit fraud.
The three bureaus are:
• Equifax, (800) 685-1111.
• Fxperian, (888) 397-3742.
• Transunion (800) 916-8800.
Request that each bureau have fraud flags and statements added to your reports saying that all potential creditors should contact you to verify applications for new credit. Ask the bureaus to clear the fraudulent accounts off your record. If all else fails, contact a lawyer. He may be able to get credit agencies or stores to pay more attention to your case.
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How can I keep thieves from stealing my identity?
An identity thief can’t steal your identity without first getting information. Guard your personal information carefully:
• Don’t carry unneeded credit cards, your Social Security card, your birth certificate or other personal documents in your purse or wallet.
• Keep track of your ATM, credit and debit cards. Store the receipts in a safe place or shred them.
• Shred unneeded personal documents and mail with identifying information before throwing it out.
• Cancel unused credit card accounts.
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