Debt Consolidation Blog

Posts Tagged ‘credit report’

Credit report is history that shows your payments habits. If you default on payments, the creditors will report to credit reporting agencies that maintain payments history. If you found a creditor listing on your credit report, then there are chances that you owe money to that creditor or any of its business entities for with the creditor underwrites.

When you find creditor listing on your creditor report, do not overlook as that may hurt your credit score. If you found a creditor listing on your credit report then here are the things that can likely to happen:

Creditor listing appears when you owe money to it or its business entity, pay off: it is likely to list on your credit report when you miss monthly payments. In that case, contact you creditor and speak to them and explain your hardship. Draft an appealing hardship letter requesting to lower the interest rates and monthly payments that can be affordable to pay off the bills. If you are in serious trouble and can not afford to pay on monthly basis, try to negotiate with them and settle you account by paying the amount affordable by you. With debt settlement, you can clear the debt much lower, almost 50 percent of the amount you owe and get out of debt legally.

If you are not sure of the entry listed on the credit report, then verify it whether you owe the dues. Send the debt verification letter to creditor requesting to prove the debt with them. This is important because negative entries on your credit report may harm your credit score and penalty for which you do not responsible is disgusting. If they provide proof of debt then work out with them for repayment plan or debt settlement to clear the debt faster.

If you found the creditor listing for which you are not responsible then dispute the listing with your creditor. Contact creditor and request them to co-ordinate with credit reporting agencies in a process of updating the account correctly.  While sending a dispute letter to creditor attach documents which proves your stance and make sure to send them through certified mail with acknowledgment which let you know that creditor has received your letter and when.

If you owe money to creditor and it is for a long period of time then check for statue of limitations before making payments as you can avoid making payments if the account exceeds certain period of time and still the creditor seeks payment. You can use statue of limitation as a defence and make sure to check the statue of limitations of the state you are residing currently.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.