Financial Education Services - The Six Worst Items To Appear On Your Credit Report

It's easy to make mistakes or experience hardship when it comes to paying your bills. Some mistakes are so detrimental; want to avoid them at all cost. Since future creditors and lenders use your credit report to make decisions about you, it's important to understand how each of these impact your credit file.

1. Charge-offs

Missing your payments for 6 months or more could cause your creditors to deem your account as uncollectible. When this happens, the creditors write that debt off as a loss against their income taxes. Charged-off accounts are allowed to be reported on your credit report for seven years. Just because a debt is charged off (or written off) does not mean the debt is forgiven. The money is still owed. The creditor will usually sell or assign the debt to a collection agency or a lawyer to effect collection.

Some companies continue to charge interest, but most don't. If they do decide to keep charging interest, they have to continue to report it as income. Most companies would rather just write it off and be done with it.

Having charge offs on your credit report usually results in the consumer being denied credit by other lenders. Even worse, it can also affect the interest rate that other lenders charge on current debts even if those lenders were not impacted by the charge off themselves.

If you find yourself late on your payments, you should always try to contact the lender and let them know you are having problems meeting your financial obligations. Ignoring the situation and letting it get to charge off status always makes it worse. You can usually avoid your account being charged off by at least letting them know you intend to pay and by at least making small payments as often as you can.

It's much easier to get a paid charge off removed from your credit report than it is an unpaid charge off. When you dispute the charge off with the credit bureaus, they have 30 days to verify the account with the creditor. If the account is paid, many times the creditor will just ignore the verification request. They really only report charge off so that they can damage your credit hoping that it will turn make you want to pay them off.

2. Collections

Not only will creditors charge-off your account after a period of non-payment, they may also hire a third-party debt collector to attempt to collect payment from you. Your credit report may or may not be updated to reflect a collection status. Sometimes the debt collector places an entry on your credit report or the original creditor places a note on your report indicating the account is in collection status.

3. Bankruptcy

Filing bankruptcy allows you to legally remove liability for some or all of your debts, depending on the type of bankruptcy you file. Your credit report will reflect each of the accounts you included in your bankruptcy. Even though the bankruptcy information can legally remain on your credit report for seven to 10 years, you can begin rebuilding your credit soon after your debts have been discharged.

4. Foreclosure

If you default on your mortgage loan, your lender will repossess your home and auction it off to recover the amount of the mortgage. This process is known as foreclosure. When your home is foreclosed it can severely damage your credit, limiting your ability to obtain new credit in the future. A foreclosure can remain on your credit report for seven years.

5. Tax liens

When you don't pay property taxes on your home or another piece of property, the government can seize the property and auction it off for the unpaid taxes. Even if your home is foreclosed because of a tax lien, you are still responsible for the mortgage loan. Non-payment of the mortgage will also hurt your credit. Unpaid tax liens can remain on your credit report for 15 years, while paid tax liens remain for 10 years.

6. Lawsuits or judgments

Some creditors may take you to court and sue you for a debt, if other collections fail. If the lawsuit is accurate and a judgment is entered against you, it can remain on your credit report for 7 years from the date of filing, even after you satisfy the judgment.

For information on how you can solve these issues as well as potentially remove them from your credit report please visit United Credit Education Services

Also be sure to review our complete FES Protection Plan

Credit Reporting 101

Let's take on the fundamentals of the credit reporting system. From the big three credit bureaus, TransUnion, Equifax and Experian, to your rights under the Fair Credit Reporting Act, this article will help you navigate the credit report maze.

The credit reporting agencies - TransUnion, Equifax and Experian (formerly TRW) are the three national credit reporting agencies that keep records on consumers. The reporting agencies work with lenders, creditors, insurers and employers to update and distribute your information to the appropriate institutions. Here's an example of how the system works:

1. When you apply for a new credit card the creditor requests a copy of your financial history from the reporting agencies. This causes a "hard inquiry" to be recorded on your credit report.

2. The creditor uses your credit reports and scores along with income and debt information to determine what rates to offer.

3. You start to use the new credit card and the creditor reports your activities to the credit reporting agencies about every 30 days.

4. The credit reporting agencies update your credit report as they receive new information from creditors or lenders.

5. Your credit profile changes based on your financial activity. The next time you apply for a credit card or loan, the process repeats.

Your credit report - Your credit report is divided into six main sections: consumer information (address, birthday and employment), consumer statement, account histories, public records, inquiries and creditor contacts. When you open a new account, miss a payment or move, these sections are updated with new information. Old negative records will stay on your credit report for 7-10 years. Positive records can remain on your credit report longer. Not all creditors report to all three agencies and the agencies obtain their data independently so your reports from TransUnion, Equifax and Experian could be substantially different from each other. That's why it's important to check your three credit reports every 6-12 months to ensure that the information is accurate and up-to-date.

Correcting inaccuracies - Under the Fair Credit Reporting Act, consumers are protected from having inaccurate information on their credit reports. If you find an inaccurate record on your report, try contacting the creditor or lender associated with the mark first. These companies can usually correct the mistake and send an update to the credit reporting agencies. If you can't make progress this way, you can also dispute the inaccuracy directly with the credit reporting agencies.

Working the system - Managing your credit and maintaing a good credit history can lead to better rates on major purchases. We recommend that you check your credit reports every 6-12 months or at least 3 months before a major purchase in order to guard against damaging inaccuracies and identity theft. Routine check-ups along with paying your bills on time, keeping your credit card balances below 35% of their limits and correcting any negative inaccuracies will help you maintain a healthy credit profile.

Financial Education Services (FES) and FES Protection Plan

Financial Education Services - FES Protection Plan

Protect your Credit File with Positive Credit Builder! p>

Your Credit Score is the most important number in your financial life. Your Positive Credit Builder credit analysis document will provide the necessary tools to understand the credit scoring system and how it impacts your financial health and freedom.

Protect your identity with LifeLock!

As the leader in proactive identity theft protection, LifeLock takes proven steps to help prevent thieves from destroying your credit and good name – even if they get your information.

Protect Your Loved Ones Future with FES Will and Trust Plan!

Planning for life's uncertainties brings you and your family peace of mind. But a will alone is not enough. You also need a living trust, medical power of attorney, and financial power of attorney.

Protect your finances with FES DebtZero!

SAVE THOUSANDS with the most effective, most efficient debt pay off system available. Get out of debt easier than ever with a clear precise plan that is customized for you.

What is FES DebtZero?

FES DebtZero is a web-based debt acceleration program that provides individuals with personalized direction they need to accelerate the pay off time of all their debts and mortgage. FES DebtZero guarantees that if you follow your personalized instructions you will be 100% out of debt and mortgage free in less than half the time it takes the average person, making regular payments, while saving or gaining thousands of dollars in the process.

Can anybody qualify or use FES DebtZero? Is FES DebtZero right for me?

If you have a checking account, make more money than you spend and have debt that you want to pay off quickly then FES DebtZero will work for you.

How Does FES DebtZero Work?

1. Deposit Income

Deposit your income, as you normally would, into your standard checking account. It doesn't matter if you direct deposit or hand it to a teller. FES DebtZero is a web-based program that is used as a management tool like a navigation system for your finances. Provide the secure FES DebtZero system your financial overview and the system will offer step-by-step direction so you can properly apply optimal payments toward your debt. FES DebtZero directs you on the best quickly pay off your debt that is also conducive to wealth accumulation. The less money that you have to pay on interest, the more money you'll have growing in your account.

2. Follow Prompts

The program looks at your deposited funds, expected expenses, dates they are due, and safely reserves funds for any unexpected expenses. FES DebtZero then analyzes this information and generates monthly prompts that will provide precise directions for paying off 100% of your debt, without any alteration to your existing lifestyle. In other words, you will still be able to enjoy yourself while paying down your debt!

3. Pay Expenses

Continue to use your checking account to make payments to your monthly bills, as they become due. If you currently pay your bills using online bill pay you can continue to do so. You will also use your checking account for daily budgeted spending (i.e. gas, groceries, entertainment etc). Any money that you have not spent is left in your account to accumulate and then used to pay off your debts or mortgage.

For more information contact

Mark Bustamonte Regional Sales Director Financial Education Services 954-707-2932 Direct

Financial Education Services (FES) and FES Protection Plan

VR Tech announces name change to Financial Education Services

At the first annual National Convention in Atlanta, GA in February 2010, VR Tech Marketing Group announced the name change to Financial Education Services (FES) to better identify the mission of the company and related product line.

Coral Springs, Florida (PRWEB) March 5, 2010 -- VR Tech Marketing Group, in order to better identify it mission, products and services, announced a name change to Financial Education Services (FES).

VR Tech Marketing Group, now Financial Education Services (FES) has been in successful operation for over 7 years. FES has worked with consumers since 2003 to help educate consumers about the importance of credit as well as providing resources to help consumers improve and maintain there credit rating.

Financial Education Services over the years has continued to build it's product line by adding products that enhance the credit restoration process. FES recognizes that the key to helping someone that has credit issues requires more then just deleting derogatory items from the credit report.

Some on the enhancements include the VR Tech Prepaid MasterCard as well as the UltraScore program. The prepaid MC offers an unsecured minimum line of credit that is acquired by applying a direct deposit from an employer to the consumers card. This ensures the repayment of the unsecured line as well as building good payment history.

UltraScore provides a comprehensive credit analysis for the consumer as well as an "Action Plan" to help the consumer understand all the components of there credit profile and what they need to do in order to maximize there credit in the most efficient manner.

Another major announcement that was made a the National Convention was the creation of the YFLF (Youth Financial Literacy Foundation) and the YFL (Youth Financial League) designed to help teach youth the importance of being financially literate. This program is geared toward youth ages between 8 to 18. This program will provide interactive web based teaching modules. Youth that complete the financial curriculum will be eligible for educational scholarships.

As well introduced was the launch of the FES Protection Plan. The FES Protection Plan is holistic approach to help consumers protect all areas of their finances and includes: Positive Credit Builder, Identity Theft Protection, Estate Planning, FES Debtzero.

FES Debtzero is a web based application that helps consumers to establish a clear and precise method of eliminating personal debt, secured or unsecured, in the most effective way. This tool will show the consumer how to repay there debt while creating discretionary income for savings.

Financial Education Services (FES) with it's long history of success as a company and very high valued products is positioning it self to be a major player in the revitalization of the economy by address the issue of financial illiteracy in communities all across the country.

For additional information about how you can on Financial Education Services (FES) please contact Mark Bustamonte at 954-707-2932 or visit https://www.myfinancialeducationservices.com.

About Financial Education Services (FES):

Financial Education Services, Inc. ("FES") is primarily engaged in providing financial education services and products for the benefit of a federal credit union, its members, the members of other credit unions contracting with FES, and to prospective credit union members.

For more information contact:

Mark Bustamonte, Sales Director Financial Education Services 954-707-2932

Financial Education Services and Prime Financial Credit Services Financial Empowerment Network Team

What is the definition of accurate information?

This is the $64 question. The Yale University School of Law put together an excellent publication that states, "Consumer reporting agencies must correct or delete inaccurate, incomplete or unverifiable information..."

http://www.yale.edu/hronline/careers/screening/documents/FairCreditReportingAct.pdf This is the first key to understanding what information can be placed on your credit report and which party bears the burden of proof. There are volumes of case law on this subject, but don't expect to see the credit bureaus placed in a negative light when looking for this definition on their websites. This would be like the IRS providing you with a guide on how to fool the tax auditor.

Consumers don't really know what should and should not be on their credit reports and hence, don't have the basis to challenge the information it contains. Look at the class action law suit filed at www.bankruptcydischargesettlement.com. This law suit alleges that bankruptcy debts in particular were manipulated to bring down credit scores more than they would be from the bankruptcy itself. There is a clear advantage to banks and insurance companies who profit from charging higher rates and fees to this class of consumer.

The process of identifying "inaccurate, incomplete, and unverifiable" information is best accomplished by someone who knows exactly what information is being reported. Many times, there can be something as simple as the opening date of the account that is wrong. Be definition, this is inaccurate. If the last activity date is unknown, this is incomplete. If the current balance on a loan cannot be verified, then that information is unverifiable. There are numerous other pieces of data that all fall under this same category.

Which institutions are already using FICO ’08, and how much will the new version lower my score?

The "selling point" of FICO '08 is broad based. The Fair Isaac Company said, "The strongest improvements in risk prediction over current FICO scores are achieved in key consumer segments such as those opening new accounts or having prior derogatory information. In addition, this newest generation of FICO scores includes refinements to help lenders better evaluate consumers who are comparatively new to credit." Fine, but what does that mean?

A webinar put on by the company in September of 2009 allowed for some interesting interchange. We were told that people with very high scores would be unaffected, but those in the lower ranges could expect to see their scores drop by as much as 10 to 30 points. That statistic is NOT published anywhere, lest you go looking for it. The new version would also identify authorized user accounts that had been set up for the sole purpose of creating the appearance of a long-established trade line. We were told that collection accounts less than $100 would not affect the score, nor would an isolated late payment if the consumer had an otherwise stellar payment history.

Loan mods are unintended "score mods"

A 12/28/09 article in Money.Cnn.com showed that even if you are current on your house payment, a loan modification will sometimes be calamitous to your credit score. How does this happen? First off, most loan modifications have a trial period that you are expected to perform in. If you fail to make timely payments for the first 3 to 6 months, then the modification attempt is terminated and the bank will again pursue foreclosure.

During that trial period your Note has not been officially modified, so you are, by definition, on a partial payment plan. Whether it is a partial payment plan on a credit card or a mortgage, it makes no difference. When the lender enters that data to the credit bureaus it will show negatively on your credit. Next, let's suppose you complete the trial period successfully. Once your loan modification plan is accepted, you may still have a delinquent balance carrying forward. This delinquent balance will also serve as a negative mark against your credit even though you are "paying as agreed" based on the loan modification terms.

I don't think the banks are ignorant of the affect these policies have on consumers. Lower credit scores are the pathway to charging higher rates and fees and a loan modification is just one avenue that provides a bank with that opportunity. There is a lot of give and take throughout the loan mod process along with expressed and implied terms. If you think your score has been damaged by a loan modification - remember this, the burden of proof for reporting correctly is squarely on the shoulders of the credit bureaus. To find out how to "audit" the information on your credit reports please visit my affiliate link site.

George Andersen is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit Credit Educationfor more information on George Andersen.

Mistakes and Other Inaccurate Information

Mistakes and other inaccurate information on your credit report aren't your fault and in a perfect world, wouldn't affect you.

Our world is not perfect, however, and while you may not be responsible for some or all of the questionable items on your credit report, you are probably being held accountable for them.

The Fair Credit Reporting Act gives you the right to contact credit bureaus directly and dispute items on your credit reports. Just as in a court of law, you have the right to plead "not guilty" to questionable information on your credit reports, and leave the burden of proof to the credit bureaus.

You can dispute any and all items on your credit reports that you feel classify as inaccurate, unverifiable, or misleading. If the bureaus can not verify that the information on your reports is indeed correct, then those items must be deleted.

I am a member of Financial Empowerment Network Team and Prime Financial Credit Services

Your Credit Score Is Yours to Control

Are you confused by credit, and how to create a better credit score? Don't feel bad, many consumers and business people find it hard to understand why their credit score is low. They pay their bills. And when they are a little late on a payment, they pay extra fees to the Lenders to make up for that. The Lenders enjoy great profits, and yet, the Borrower gets penalized more. Is it fair? I say NO! Enough! It's time for us to take control of our credit scores, and get them to reflect accurately, what kind of people we really are. In fact, the United States government agrees. Toady, there are laws to protect us, and allow us to take back control of our credit histories and credit scores.

Use these laws to make sure you aren't forced to pay more for auto loans, credit cards, mortgages, insurance and utilities. Besides costing you more money in monthly bills, we've been hearing more about people who get job offers that are later taken back, because of a "bad" credit score, a result of having been out of work for a year or longer. They didn't use credit to support a luxurious lifestyle. Ironically, they are penalized by taking away the very thing that they need to get back on their feet and to get back to paying their bills. Is it just me, or does it seem ridiculous to you as well? Credit reporting agencies, and Lenders, seem to believe that it's their right to penalize consumers to any level that they choose. The US government says it isn't their right. It is their right to report late payments and defaults on payment agreements, to the extent that they report it accurately. Is the information on your credit report accurate?

Frits Tessers is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit Personal Coaching for more information on Frits Tessers.