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Credit Score/Credit Reports Credit Report Articles Negative Entries on your Credit Reports
Credit Score/Credit Reports Credit Report Articles Negative Entries on your Credit Reports
| Negative Entries on your Credit Reports |
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| Written by Administrator | |||
| Saturday, 19 July 2008 09:22 | |||
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Here how to identify all of the negative entries on the report. Bankruptcies (BK) If you have had a bankruptcy, the credit report will list the date you filed your BK and the date it was closed. It also can list the amount of debt that was discharged in your BK. Foreclosures/Repossessions A foreclosure and a repossession are essentially the same thing: your creditor takes back property you used to secure a loan because you didn’t pay on time. A foreclosure describes only loans secured by real estate. All other types of seized property due to the defaulting of secured loans are called repossessions. Tax Liens If you owe state or federal taxes, these governmental agencies can put a lien on your home for the amount owed. Tax liens are public records, and they usually will find their way onto a credit report. Judgments If you’ve ever had a judgment filed against you, it means that you have been sued in court and a monetary award was given to the person or entity that sued you. Judgments are public records and easily find their way into your credit files. Profit and Loss Charge-offs Profit and loss charge-offs are generally used only by credit card companies and usually are debts that a creditor considers uncollectable and does not bother to spend time or lawyer’s fees to collect. However, even if these companies aren’t actively trying to collect from you, these debts are still owed by you to the company. If you refinance your house or apply for a loan, most mortgage companies will make you pay off these debts. The reason is that these debts can be turned into a lien against your property. Liens matter to a mortgage company for a couple of reasons: • When you sell your home, the monies owed against a lien (plus interest) must be paid off to clear your title. • Liens are in a higher position than a mortgage, meaning they get paid off before the mortgage company gets its money. If the mortgage company has to foreclose and you have lots of liens on your home plus a mortgage, the mortgage company potentially could lose thousands of dollars. • Just because these debts are charged off doesn’t mean that the creditor won’t come after you later. Creditors have the right to sue you and win a judgment in court until the statute of limitations runs out. Collections If you have defaulted on a debt, your creditor most likely is first going to try collecting the money from you by using pressure tactics. After they give up on this approach, they hire professional hit, er ah, bill collectors—the collection agencies. Once your bill gets turned over to these oh-so-not-friendly people, your account is considered a collection account. Mortgage companies will also make you pay these items before the close of a loan. As with an original creditor and a charged-off account, collection agencies have the right to sue you over a collection account and win a judgment in court until the statute of limitations runs out, however unlikely they are to do so. Late Pays You will be reported as “late” to the credit bureaus for being more than 30 days late on a payment. If you are 0 - 30 days late on a loan or credit payment, you are not considered late paying a bill. Inquiries Whenever you, or anyone else, request a copy of your credit report, the request is noted as an “inquiry” on your credit history. If you apply for lots of credit cards in a short time, this lower your credit score. The credit scoring models assume that many of recent inquiries means you’ve applied for lots of credit, making you a greater credit risk. Child Support If you are delinquent in making your child support payments, it becomes public record and can show up on your credit report.
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| Last Updated ( Saturday, 19 July 2008 09:27 ) |