The bad credit help information below is a general overview of topics that should help you in understanding how you can help yourself get back on track and rebuild and repair your credit. This information is not legal advice as we are not attorneys. Always consult with an attorney that specializes in credit and bankruptcy matters prior to making a decision.

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How long do inquiries stay on a credit report?
In most cases inquiries remain for about 3 years.

Do inquiries cause my credit scores to go down?
Too many inquiries in a short period of time can have a negative impact on your credit score. The truth is every lender has spent thousands of dollars to develop their own credit scoring system, so no one knows for sure except the particular lender you are dealing with. This is a closely guarded secret of the lenders.

If I check my own report will it make my credit scores go down?
No, only inquiries made by a creditor.

Will debt consolidation hurt my score?
Debt consolidation in itself will not hurt your score.

What about Credit Counseling, will it hurt my chances of obtaining credit?
Absolutely! Most potential lenders will not extend credit to someone who is presently in Credit Counseling. The lenders fear that if they extend credit while in Credit Counseling and you decide to file bankruptcy they will not be able to collect. Review all your options before getting into Credit Counseling.

What is actually considered as being late and could be reported to the Credit Bureau?
In most cases as long as you make payment within 30 days of the due date, the account will be reported to the Credit Bureaus, paid as agreed. Please don’t forget that just because you mailed it on the 30th day, that doesn’t matter. You must allow the lender a reasonable amount of time to process your payment and give you proper credit.

How can I get a bad credit reference removed from my file?
You basically can tell the creditor anything that you can live with. For example, I had lost my job. There was an illness and we didn’t have insurance. I am a good person that just ran into some bad luck. Went through a divorce. Again, whatever you are comfortable saying and remember there’s no way they can see anything like that on your credit report. Just remember to always be polite and courteous.

Should I pay off Charge Off accounts?
It will not improve your credit score. The one thing it could do is show new creditors that you did have a problem but when you were able, you tried to do the right thing.

How fast can I get my credit cleared up?
There are no fast cures. Companies that profess to clear up your credit overnight should be carefully scrutinized. The truth is that it takes hard work on your part. If you have proof that something was done in error or placed incorrectly you can contact the credit bureaus and they will allow you to dispute it. During that time the bureaus will generally remove the item being disputed or put a note into your file indicating a dispute has been filed.

What is a Beacon Score?
A Beacon Score is a numeral value assigned to your overall credit rating. These scores generally run from 400 to 850 which are considered perfect. With a score of 700 or higher, you can generally buy just about anything you want. Once you get in the low 600’s or below you are considered to be a much higher credit risk. This credit score is also what the lenders use to determine what kind of risk you are and determines the interest rates. The lower the score the higher the rates. These scoring systems and components of them are closely guarded secrets of the lenders.

How long do items stay on your credit report?
Bad credit will usually stay for 7 years. Bankruptcy stays for 10 years.

How does someone with a Bankruptcy get credit and I can’t?
First of all the Bankruptcy must have been discharged. This means that any debt has been forgiven or repaid. Generally speaking a person with a discharged bankruptcy should have very little or no debt. This is a positive thing for the lenders. With very little or no debt they feel like they have a better chance of being repaid.

What is a Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy is a form of bankruptcy that usually wipes out all debt that wasn’t confirmed or disputed by the creditors. There are many different variations of Chapter 7 Bankruptcy laws. Check your own state or contact a Bankruptcy Attorney for specifics in your state. In many states you can keep your house and some personal assets. The truth is that your personal belongings are of little or no value to a lender. Also in many states, a Chapter 7 Bankruptcy can be filed and Discharged within 90 days or so. In effect, you could get underway with a fresh start within 90 days of filing.

What is a Chapter 13 Bankruptcy?
A Chapter 13 Bankruptcy is basically an agreement with your creditors to accept less than you originally agreed to pay for the credit you received. The creditors usually receive in most cases pennies on the dollar. The creditors prefer this form of bankruptcy because they do receive some payment as opposed to a Chapter 7 under which most of them don’t get anything. Repayment terms for a Chapter 13 can run from 1 to 5 years. During the repayment process of a Chapter 13, it’s very difficult for you to get started rebuilding your credit. Anything that you buy on credit has to be pre-approved by your Bankruptcy Trustee. It’s a long process which can take 6 weeks or more to get approval. Lenders are very cautious about granting credit while you are in a Chapter 13 because you can convert a Chapter 13 into a Chapter 7 and unless they have the Trustee’s permission, they lose.

Which form of Bankruptcy is better?
That’s a question that you and your attorney need to decide.

Who are the Credit Bureaus and how can I contact them?

Equifax Credit Bureau
P.O. Box 740256
Atlanta, GA 30374 Phone number 800-525-6285

Experian Credit Bureau
PO Box 9595
Allen TX 75013-9595 Phone number1 888 Experian

Transunion Credit Bureau
P.O. Box 2000
Chester, PA 19022 Phone number 1-800-680-7289