Will Filing For Bankruptcy Negatively Impact My FICO Score? By Chad R Fisher

It's important to know the facts about bankruptcy and your FICO score, before you decide to file for Chapter 7 or Chapter 13 bankruptcy. You should also know that filing for bankruptcy will decrease your credit score there is reallly no way around it. However, the good news is that eventually you can rebuild your score so all is not lost. Read our informative article and find out more about how bankruptcy impacts your credit data.

First a bit of history on where FICO comes from. The acronym FICO stands for; "Fair, Isaac and Company". This is the company that developed the software system (or formula) that puts a credit score on your credit record. It is one of the most popular, if not the most popular way lending institutions make their decisions on who to lend their money to. Literally billions of credit decisions are based on the credit score. Since this score is so widely used it is plain to see that the question; "How does bankruptcy affect my score?" would be an easy one to answer.

Keep in mind that there are lots of events that can negatively impact your credit rating. If you just had a home foreclosure and experience with lots of late our outstanding debt will know that their credit score can be adversely affected.

The FICO score does not reflect your income or ability to pay. Instead it reflects your probability to pay. You may make plenty of money and be able to easily afford a certain car or home, but your score will not be showing such an ability. As you may have figured out, one of the top reasons for getting a lower score would be bankruptcy since bankruptcy shows your complete delinquency to pay back what you owe.

Now that you know the answer to the question, how does bankruptcy affect my credit rating? it is a wise thing to do all you can to avoid entering bankruptcy protection if you want a higher credit score.

All of our articles are originals, if you liked this, check out Understand Bankruptcy for similar information.

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How to Legally Remove a Bankruptcy From Your Credit Report By Patrick Zanders

If it was not so sad, it would be incredibly funny. With all of the information that is available today, people still allow poor credit to disrupt their lives. I find this most often when it comes to bankruptcies on credit reports. Isn't it bad enough that people had to file bankruptcy? I guess the credit bureaus don't think so. They want to make these same folks believe that they have to suffer for 10 freakin years with this on their credit files too. This is an outrage!

To make matters even worse, there are all kinds of self proclaimed "guru" authors that are writing garbage stating that it is dishonest to try and have a bankruptcy removed from your credit report. If that is dishonest, what would you call a non governmental agency like the bureaus wrongfully holding your credit hostage for 10 years? Hmmm....Let's call that down right criminal shall we?

Here is the skinny on bankruptcies. It truly would be illegal if you had it just wiped away using e-oscar, metro 2 or any other software that hackers and scammers are using. If you used the actual laws on the books though, you would LEGALLY REMOVE THAT BK PERMANENTLY! Let me explain further what I mean.

The only way to make that BK disappear from your file is to prove that it does not belong there. I did NOT say that you are going to try and prove that it is not yours....Nope, it is yours. You hired an attorney, signed papers, and went before a judge...IT IS YOURS! What you ARE doing is disputing the bureaus right to place this on your credit report..Doing this would have your BK removed right away!

So before you let your credit report keep you down for 10 years...Get to work and get it removed!

Patrick Zanders is available for consultation on credit matters including removing bankruptcies from your credit reports. He can be reached at 623-255-6023

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Write Off Credit Card and Loan Debt - The Consumer Credit Act 1974 By Kerry Jonas

The Government introduced The Consumer Credit Act 1974 (The Act) in to Law, to provide people with specific Consumer rights and to protect them from Lenders. The Act sets out very strict guidelines for the content and format of all Credit Cards, Loans and other Financial Agreements, that must be followed by all Lenders in this Country. Write Off Debt under the Consumer Credit Act.

Government Legislation in the form of The 'Act' states that if a Lender provides Credit using a written Agreement that does not fully comply with certain Conditions of the Act, it becomes an unenforceable Credit Agreement. Therefore the borrower will not need to repay the outstanding balance and may be entitled to a refund of payments and compensation.

The Consumer Credit Act and other Government Legislation, explicitly detail the exact content and format a Credit Agreement must use if a Credit Agreement is not to become an unenforceable Agreement. However, because of changing legislation and Legal new presidents, Lenders regularly change the content of the Credit Agreements they use.

Solicitors have now discovered that over the years, some of the many often inexperienced people used by the Lenders to draft or amend their Credit Agreements have made errors by failing to include all of the content required, in the exact format required by Consumer Credit Act Law.

This area of Consumer Credit Law is relatively complex, however in simple terms some of the areas which can make Credit Agreements become unenforceable Credit Agreements include:

NON PROVISION OF PRESCRIBED TERMS

The Lender did not include in the Agreement all of the information they were required to provide, in breach The Consumer Credit Act.

INAPPROPRIATE EXECUTION OF AGREEMENT

The Lender did not provide an Agreement in the format allowing correct execution, in breach of The Act.

MISCALCULATION OF APR's or THE TOTAL AMOUNT REPAYABLE

The Lender did not use the correct method to calculate the Interest Rate or the Total Amount Repayable, in breach of The Act.

NON PROVISION OF RELEVANT DOCUMENTATION POST AGREEMENT

The Lender is unable or unwilling to provide copies of the original signed Agreement and supplementary documentation, in breach of The Act.

NON DISCLOSURE OF COMMISSIONS OR FEES

The Lender did not disclose all of the commissions and fees they paid or received in connection with the Agreement, in breach of The Act.

MIS-SELLING OF ANCILLARY PRODUCTS

The Lender inappropriately included an ancillary product with the Credit Agreement, in breach of The Financial Services and Markets Act 2000.

If you use Solicitors to arrange for your Lender to write off your unenforceable Credit Agreement, you will not need to know which aspects of the Law your Lender has broken, Solicitors will deal with these matters.

Visit http://www.CreditIssuesUK.co.uk - Write Off Credit Card and Loan Debt with the Consumer Credit Act and take the 2 minute test to find out if your credit agreements qualify.

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Can You Really Pay to Repair a Bad Credit Score? by James Copper

You have probably seen commercials at one time or another that offer to eliminate your bad credit score. Usually they require that you pay a hefty sum of money before they begin eliminating the problem. They may promise to raise your score in as little as 30 days and have you qualified for the loan of your dreams. But, can anyone really wipe out a bad credit score?

Well, you cannot pay someone to magically eliminate your credit score for you. Many people have found out the hard way that these companies are just a scam. These companies will request money even before they have looked at your credit report. These types of companies may try to persuade you to create a new credit identity. This is actually illegal and while your bad credit will be erased, you will more than likely find yourself spending time in prison or paying back a hefty fine.

The bottom line is that no one can wave a wand and erase your bad credit score. If you want that number erased, then you are going to have to do some work yourself to improve your credit score. Some things that you can do to improve your score are as followed. It may be hard work, but it is something you should certainly try to do to better your credit.

Look for inaccuracies in your credit report. It doesn't take a whole lot to send your credit score plummeting. If you find a problem in your credit report, immediately report it to the consumer reporting company. Make sure that you are not sending original documents, only copies. This is because any document you send them will not be returned. Be sure that each item in question is clearly identified so there will not be any confusion. Once your information is processed and the correct businesses are contacted, your credit score will then be investigated. If they do identify that there is a problem with the items in question, they will fix them or sometimes erase them from your report, but only if there is a problem. It is always recommended that you keep a copy of all the disputes that you may file.

Debt consolidation can greatly improve your credit score. If your credit score is lowering because you are unable to pay off debt and you are considering filing for bankruptcy, don't do it. Working with your credit company and consolidating your debt can have a major impact on your credit score. As a matter of fact, many companies see this as being more responsible than filing for bankruptcy. Debt consolidation basically lumps all of your unpaid bills into one monthly payment. This will make sure that everyone is getting money every time this payment is made.

Any company offering to erase your bad credit score is telling you a lie. They are either going to scam you or supply you with information that is freely available from consulting a credit counsellor. So, protect yourself and do you research before signing on with anything that seems shady.

James Copper is a writer for http://www.repossession-stopper.co.uk where you can find hints to prevent repossession