Bankruptcy and Credit

Macon GA Bankruptcy Attorney

All you wanted to know about bankruptcy and credit

 

Credit

 

Credit is your ability to borrow money. Unless you have a good credit, creditors will be reluctant to give you money.

 

Credit Score

 

A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A person’s credit score can be obtained from his credit report. When you apply for credit, the lender will ask for your credit report. A credit reports are prepared by credit reporting companies like Equifax, Experian and Transunion. Your lenders will send to the credit reporting agencies specific and factual information about their financial relationship with you on regular basis. This information includes when you opened up your account, whether you make your payments on time, whether you missed one or more payments, etc. The higher your credit score, the lower your monthly payments.

 

Information on Credit Report

 

Credit Report contains the following information:

• Personal Identification - Includes key identification information, such as your name, address, date of birth and Social Security Number
• Credit Information - Provides details of your credit accounts and transactions and shows if payments are being made on time
• Banking Information - Includes information on your bank account
• Public Record Information - Contains information about secured loans, bankruptcies and/or judgments
• Third-Party Collections - Contains information about any involvement with a collection agency trying to collect on a debt
• Inquiries - Includes all organizations or individuals that have requested a copy of your credit report in the past three years

Who uses my credit report?

 

All lenders will request the credit reporting agencies for your credit report whenever you apply for a loan or credit. Your credit report helps them determine the risk factor involved in providing credit to you.

 

Other factors that can affect your credit application

 

Besides your credit report, the lender will consider the following:

• Your debt to income ratio - The amount of money you owe compared to how much you make.
• Length of your credit history – If you have a long credit history, the lender will consider your application favorably.
• Payment history – Your payment history will let the lender know if you are regular in making your payments.
• Other credit applications – If you have applied to many lenders at the same time, you may be reducing your chances of getting approved.
• Stability – the length of time you have been at a job, the length of time you have been staying at the same address.
• Education – Your level of education also plays an important role. Lenders consider school drop outs more risky than a college graduate.

Getting your credit report

 

You can obtain your credit report by contacting any of the credit reporting agencies:
Equifax 1-800-685-1111
Experian 1-888-397-3742
Trans Union 1-800-916-8800

You are entitled to one free credit report every 12 months upon request from each nationwide credit reporting agency. Otherwise they can charge you a nominal fee which is generally $11.

Error on your credit report

You have the right to dispute any error on your credit report. If you identify information in your credit report that is incomplete or inaccurate, you must report it to the credit reporting agency. The agency must investigate your report. Credit reporting agencies must correct or delete inaccurate, incomplete or unverifiable information within 30 days. However, a credit reporting agency may continue to report information it has verified as accurate. The credit reporting agency must give you a written report of the investigation and a copy of your credit report if the investigation results in any change.  If the investigation does not resolve the dispute, you may add a brief statement to your file.  The credit reporting agency must normally include a summary of your statement in future reports.  If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received your report be notified of the change.

 

Identity theft

 

If you are a victim of identity theft, you must alert the credit reporting agencies. The credit reporting agencies will issue a fraud alert and potential lenders will be informed about your identity theft. Make sure you inform the police.

 

Credit Repair

 

Credit repair is not magic. It’s not an overnight process. It takes time. It requires efforts on your part. Credit repair is legal and permitted by law. Credit repair does not mean that your credit will be restored to perfect status. In almost all cases, you can get some improvement in your credit score. Patience is key to credit repair. If you are successful at credit repair, you will be able to get a credit card, home loan, auto loan, refinance, etc., at better interest rates.

 

If you are located in Macon, Roberta, Warner Robins, Forsyth, Byron-Centerville, Culloden, Fort Valley, Haddock, Jeffersonville, Lizella, Perry, Gray, Irwinton, Milledgeville and Vienna including Bibb County, Monroe County, Jones County, Crawford County, Peach County, Twiggs County, Baldwin County, Dooly County and Houston County contact us. We can help you file for bankruptcy.