Archive for category Bad Credit FAQ's
Erase Bad Credit: Frequently Asked Questions
Posted by Owen in Bad Credit FAQ's, Credit Repair on December 13, 2009
If you want to erase bad credit, you can either erase bad credif for free or find a company who will do it for you. Before you consider either possibility however, it’s good to know a little about the process. The following FAQs should answer some of your questions in this regard.
How long do negative items have to stay on your credit report before they can be removed?
Negative items such as late payments, non-pays, or charge-offs typically do not fall off your credit report for seven years. However, it is possible to remove these items before seven years’ time.
With regards to erasing bad credit, can credit repair companies even erase such negative items as bankruptcy?
Yes, even bankruptcies can be removed along with delinquencies and judgments.
Can you resolve a dispute with a creditor yourself and have a negative item removed from your report?
Yes. You can erase bad credit legally by contacting creditors yourself and having the negative information removed from your report. Better yet, if you do resolve a dispute with a creditor, you can have them contact the Credit Bureau and have an item erased.
With a credit repair company, can you erase bad credit fast?
Situations vary but normally it takes from a minimum of thirty days to sixty days for you to see progress along these lines even when you use a credit repair company. Typically, if you do it yourself, it may take a longer amount of time.
On your credit report, what is an inquiry?
An inquiry listed on a credit report refers to any potential lender or creditor who looks at your credit report information in order to to consider you for a loan or credit. Too many inquiries can drive down your credit score. So it’s a good idea to keep this type of activity to minimum when it comes to your credit score.
On your credit report, what does it mean to have a credit account reinstated?
It means that a previously closed account is now available for use again.
When placing a dispute, how many days does a creditor have in order to respond to a credit bureau’s inquiries with regards to your allegations?
The creditor has 14 business days in which to respond. If no response is made in that window of time, then the disputed report must be expunged and an updated file will be mailed to you for your confirmation.
On a credit report, what is the definition of a charge-off?
A charge-off on a credit report is a credit amount that could not be collected by a creditor.
What are the two acts that protect your rights with respect to erasing bad credit information from your file?
The two acts instituted to protect your rights in this regard are the Fair Credit Reporting Act (FCRA) and the Fair Debts Collection Practices Act (FDCPA).
What does the Fair Credit Reporting Act say with regards to the information on your credit report?
The Fair Credit Reporting Act (FCRA) stipulates that the information on your credit report must be accurate, timely and verifiable in order for such information to stay on your report.
What is the key area that affects your credit score on a credit report?
Your payment history is the primary factor that affects your score. Also the amount of your debt has a significant influence.
The FAQs above should assist you if you’re wondering how to erase bad credit from your report. There are a number of credit repair companies as well who can help with erasing bad credit. Research the Internet and you can find answers to your questions and receive further help in this area for you and your family.
Applying for an Auto Bad Credit Loan: FAQs
Posted by Owen in Bad Credit Auto Loans, Bad Credit FAQ's on November 1, 2009
If you want to secure funding for an automobile but feel you may be denied in this regard, don’t necessarily give up hope. You can still obtain the cash you need to purchase a vehicle, even with bad credit, by applying for a bad credit auto loan. The following frequently asked questions (FAQs) can further answer your questions in this regard.
(1) What is an auto bad credit loan?
An auto bad credit loan is designed for people with bad credit, typically those individuals who have a credit score below 680 so they can obtain reliable transportation.
(2) Can you still qualify for an auto loan for bad credit if you’re self-employed?
Yes. You can still qualify for bad credit auto loan financing if you’re self-employed although your income is harder to prove. Therefore, when being considered for this type of loan, make sure you provide tax returns for the past two years that have been completed by a tax professional.
(3) What documentation do you need when you apply for an auto loan for people with bad credit?
For income verification, you will need a pay stub from your employer. Other documentation includes a telephone or utility bill to verify your address and phone number and your most recent bank and credit card statements from the last 30 days. In addition, about four references are required and, if you don’t own a home, a phone number for your landlord to verify that you’re up-to-date on your rent.
(4) I’ve heard that obtaining a loan through a “buy here, pay here” dealer is an option for people with bad credit. Is this a good way to secure an auto loan with bad credit?
A “buy here, pay here” dealer type of loan is where the sub-prime borrower obtains his loan through the same dealership he purchases his car. No credit history is required which may lead you to believe this is a good loan to obtain if you have a damaged credit score. However, attaining a bad credit auto loan refinance over the Internet is, in most instances, a better choice . Your payments for a dealer financed loan are not recorded on your credit report where payments are documented if you don’t obtain dealer financing. Therefore, a bad credit auto refinancing loan not obtained through a dealer gives you the opportunity to prove, by making your monthly payments, that you can qualify for a lower-interest loan at a later date.
(5) How are my monthly payments determined for an auto loan for bad credit?
Your monthly payments are based on your credit profile and the sales amount of the automobile you choose to purchase.
(6) How can I qualify for extended terms if I want to lower the amount I spend each month even more?
Usually, if you purchase a newer, lower-mileage vehicle, you’ll be able to qualify for an extended term on your bad credit auto loan financing amount.
(7) If a down payment is required, how much should you put down in order to assure you’ll be approved for an auto loan for people with bad credit?
If you can put down 20% of the sales price, you’re pretty much guaranteed that you’ll secure an auto loan with bad credit.
(8) What are some steps you can take in order to get a better APR on a bad credit auto loan refinance?
If you can repair your credit before applying for the loan, this can be most helpful. Paying off some large debt credit cards can raise your credit score by as much as 200 points. Therefore, lowering your debt and making timely payments six months before applying to obtain a car loan can assist you in getting a better deal. Also, know your credit score before making application. Be well-prepared to handle any questions a lender may have about the negative items on your report. If you can lower your score, maintain a habit of paying on time and reduce some of your debt load, you’ll have the leverage to succeed in obtaining a bad credit auto refinancing loan.
(9) What type of auto is the preferred type of vehicle to finance when it comes to a bad credit auto loan?
Typically, if you select a newer model car (1 or 2 years old) with less than 50,000 miles, you will have a vehilce that most bad credit auto lenders prefer to finance.
There’s a lot of opportunity on the Internet to finance your vehicle even if you now suffer from a low credit score. Check out your options. There’s a lender out there who is willing to work with you.
photo credit: dno1967