Remove Collections From Your Credit Report

By Justin Hutto

You must dispute a collection, to remove it from your credit report. This dispute needs to be filed with the credit bureaus.

You will have to create a dispute letter and send it to each credit bureau. In your letter you have to say what mark you are disputing and give a reason as to why that mark is inaccurate.

Then a copy of this letter must be sent to each credit bureau. When the bureaus receive your letter and deem it valid they will investigate the disputed mark.

Frequently investigations result in marks being removed from credit reports. Many lenders and collection agencies will not spend the man hours or money to verify disputed debts.

If the disputed item is verified then a credit repair service can be very helpful. This service will be able to use advanced dispute techniques such as; escalated dispute information requests, debt validation, and creditor direct intervention.

What is a collection?

A collection typically occurs after 6 months of delinquency. It is a last effort for lenders to collect payment for a debt.

Most lenders have some form of in house collection. However many also will use an outside collection agency and/or sell your account.

Collection agencies will either buy your debt for a fraction of the balance or they will collect on a commission basis. Meaning they will be paid a percentage of every dollar collected.

Be aware that if you just pay a collection it will remain on your credit report. It will change the status of the collection but paying it will not remove it from your report. Future lenders will still see the mark as a negative item even as a paid collection.

In sum you can remove collections from your credit report. You do not have to live with bad credit items for 7 years.

About the Author:

For a free sample dispute letter to remove bad credit items on your report or to learn how you can remove negative marks such as a charge off visit us.

What to Do if You're In Over Your Head In Debt

By William Blake

Some people find themselves with way to much credit card debt and not enough income to bring the balances down. What can be done? Here are some suggestions.

*It may be time search for additional employment. You need to increase your income. Try taking on a second job or maybe you can try to look for a higher paying job. Just be sure that the extra money you make is used to pay off the debt to you have accumulated. This can really lighten the strain on your budget.

* Attempt to negotiate with your creditors. If you talk to your creditors, some of them may be willing to give you more time to pay, drop late fees, or reduce your interest and your minimum payment. It's possible that they might even settle for a lower amount than you actually owe, although it's rare to achieve this without a lawyer.

*Debt consolidation can make debt more manageable. If you are a homeowner consider a home equity loan to turn your multiple payments into one payment with lower interest. Remember, though, that this is a serious decision to be thought out carefully because this loan will be secured by your home.

Also don't get too excited about that low interest rate for your debt consolidation. Remember this loan will have a longer term so you may end up paying more interest in the long run. Try paying more than the required amount to pay it out as quickly as possible.

If you do not want to put your home at risk you might try applying for a new credit card with a high limit and low rate. Then you can transfer the balances of your cards to this one card and reduce your monthly expenditures.

Once you have consolidated your debt you have to be careful not to begin charging things again and run the credit card balances back up. You will be in worse shape than you were in the beginning.

* File for Bankruptcy. This should be your last resort. Chapter 7 bankruptcy wipes all of your debts clean, but you may lose some of your property depending on your individual circumstances. Chapter 13, which is now more common because of changes in the law, sets up a court-ordered payment plan to pay off your debt. Either type will stay on your credit report for 7 years, and on public record permanently.

About the Author:

Are debt consolidation non profit companies the best way to consolidate your debt? Not always. Get the full story on the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com

Is There Such A Thing As Bad Credit Student Loans?

By Dave Davis

The first few years I was away from home, I ruined my credit. Spending money that I didn't have was my big vice and there were times when I couldn't make my credit card payments. This obviously made life quite difficult when I tried to get loans. Banks saw me as a huge risk and wouldn't loan me money.

Since my credit score was in the 450 range, getting loans was also really tough. I couldn't even get a cell phone without putting down a deposit of over $400. Since I had been denied for other types of loans, I honestly believed that getting student loans was outside the realm of possibility for me.

My undergraduate studies were honestly quite a challenge for me. Mostly this was the case because I didn't think I could get loans. I would work for a while and then go to school for a while. Doing school this way takes a really long time. Now I know that I could have taken out student loans even though my credit was terrible.

The federal government has created the Stafford loan program which allows you to take out student loans regardless of your credit history. They guarantee the loans which takes away the risk from the institution that provides you with the loan.

If you think about the economics behind this program, it actually makes a lot of sense. If the government can increase your ability to earn, you will pay more taxes later in life. They may take a hit on some defaults now but will make more in the future. This is why they're willing to basically sign with you on your student loan.

Getting Stafford loans is pretty easy if you're a citizen of the United States. All you need to do is go into the financial aid office at your school to fill out a FAFSA. You will then be judged based on your need. If the school determines that you have need, you should be approved quite easily.

Stafford loans are almost always available to people as long as they haven't defaulted on a student loan in the past. Once you have a default, you are required to repay your previous loan before you can take out another.

Student loans would have helped me immensely while I was in college. I wasted tons of times trying to pay for school and in the end, it cost me a few years. Getting loans could have really sped up my process.

About the Author:

Dave helps educate people about guaranteed online personal loans and guaranteed student loans bad credit.