When it comes to home improvements, there are few things that are requested more often than kitchen islands. Having a kitchen island can totally change the way that you work in your kitchen, and in
Derogatory Credit Information
Derogatory accounts are accounts that are negatively effecting your credit. Just one mistake can turn a positive account into a derogatory account. Derogatory accounts can report on your credit for 7 to 10 years! Derogatory accounts ruin credit scores and can be extremely difficult to remove.
Inquiries are created every time your credit score is pulled. A company will pull your credit score when applying for loans and new lines of credit. Inquiries will decrease your score by a few points when initially created. It is recommended to only pull your credit score once or twice a year to avoid flooding your report with inquiries. Inquiries generally will remain reporting on your credit report for up to 2 years.
Most derogatory accounts start off as just one late payment. Late payments occur when your account is 30 days late or more. If your account is close or you become current on your payments, late payments can still linger on your credit report for up to 7 years.
After several late payments on an account, the creditor assumes the consumer is not going to pay the debt and charges off the account. Once the account reaches charge off status, it opens up the possibility for the account to be sold to a collection company. Charge offs are considered to be one of the worst items on a credit report. Charge offs, like late payments, can report up to 7 years on your report, even if the account has been paid off.
Repossessions occur when a consumer fails to comply with the contractual agreement set forth by the creditor. The creditor may repossess the consumer goods that was agreed upon in the contract. Many consumers believe they are entitled to a “grace period”. Unless noted in the contract, creditors may proceed with repossessions after only a single late payment.
Foreclosure is a legal process in which the lender will attempt to recover the balance of a loan from the borrower who has stopped making his or her payments. The lender will take the control of the asset as collateral for the loan. Other options such as short sale, refinancing, or even bankruptcy can help homeowners avoid foreclosure.
Collections are attempts to collect a debt that is past due. Most creditors will try to collect the debt themselves for several months before passing the collection to a third-party agencies. Third-party agencies are separate companies contracted by the original creditor to secure the debt. Once a collection passes into a third-party, it will create a new derogatory on your credit report. The original derogatory account may also still remain on your report. After a collection is paid, it can remain on your report as a paid collection for up to 7 years.
Judgments are created when a consumer has neglected to pay a debt. A creditor can file a lawsuit against the consumer, thus bringing the account to court and creating a formal decision made by the court. A judgment can remain on your credit report until it is satisfied. If the consumer refuses to pay the judgment, his or her wages may be garnished in order to satisfy. Satisfied judgments can remain on credit reports for up to 10 years
A tax lien is a lien imposed by law upon a consumer who has failed to pay or is seriously delinquent on his/her taxes on a property, or failed to pay income taxes. Tax Liens may occur at the state, local, or federal level. Like judgments, tax liens may report on your credit report indefinitely until satisfied or released. Tax liens may report on your credit report for 7 years after payment.
Chapter 13 Bankruptcy
When a consumer files for Chapter 13 Bankruptcy, he/she will pay off their debts within a 3 to 5 year timespan. The account is looked over by the bankruptcy court and is required that all debt be paid off.
Chapter 7 Bankruptcy
When filing for Chapter 7 Bankruptcy, the consumer can no longer pay their bills. While much of their debt may be erased, their credit will be destroyed. Future loans may be extremely expensive or impossible to attain. Law requires 8 years must pass between chapter 7 discharges
My name is Manny Quiros, I’m a real estate professional in the “Disney Area”, I have lived in this area since 1999 and have called this area my home and place my wife and I to raise our three wo....