Foreclosures Can Do Great Harm to Credit Scores
February 5th, 2009
Foreclosures are not just about being evicted but it can do great harm to credit scores – something that has a very long time effect. A good credit is the equivalent of having a good name.
Without a good credit record one cannot purchase a home, car or even an insurance policy. A tiny slip in credit matters can return to haunt the individual.
The present credit freeze and paucity has led to affect other types of borrowing. Banks have been enforced to waive off a record number of credit card debts. This means they are setting high standards for the next lot of potential applicants. One year ago a score of 720 would have been sufficient to help one start off business with a loan. Today one might get a loan but the interest will be much higher. It will not enable the borrower to qualify for the lowest rates.
Thus in the middle of the foreclosure crisis, it is time to be level headed and start looking at one’s credit score. It is possible to do so on the Internet and from the proper sites no fees are required. It is possible to buy credit score for $6 to $8 from some of the bonafide websites dealing with credit scores.
When the report is at hand one should comb through it in minute details. Any dispute should be filed immediately with each of the bureaus that have noted an error. The process is not fast and one may have to wait for as long as 30 to 45 days for a response. Persistence is the buzzword. One is to keep on at it till the problem is solved. Serious mistakes like matters relating to foreclosures and home mortgage may cost the borrower as much as 100 points. The dates of the wrong information have to be meticulously noted. Negative issues like collection account may be reported for seven years from the date of mistake. There are however two exceptions – bankruptcies that can be reported for ten years and tax liens that can be indefinitely reported.
Other common errors are the creeping in of another’s account in one’s file. This can happen due to misspelling of name or erroneous noting of address.
A prudent approach would be to stay below 30% of the limitation of each card so as to sleep well. The foreclosure crisis has led to a lot of rethinking so that the new generation turns more to cash rather than credit card usage.
- Michigan struggles with foreclosures and waiting for the magic touch of Obama
- Foreclosure Numbers Are Increasing Leading to More Homelessness
- Activist Shifts Those Without Shelter Into Foreclosed Houses
- There Were Early Signs of Foreclosure Crisis Brewing in Florida
- Collier County Persuading Banks To Maintain Foreclosed Houses
- The Horrific Reality of Abandoned Foreclosed Houses
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