Repossession on Credit Report

A repossession on your credit report is a very severe mark. It will cause you to pay outrageous interest rates and big down payments.

It will remain on your report for seven years. Additionally it will make it difficult to be approved for any new lines of credit.

Let us explain how the repossession procedure works. It is possible for you to remove this mark from your credit report.

First, your car is repossessed. Your car can be resold and, if your car is resold at a loss to the lender, you are responsible for repaying this loss. A deficiency judgment will be placed against you if you are found responsible and sued.

The repossession will be reported on your credit by the lender as well as the deficiency judgment if you have one. If you have either one of these marks on your credit, future lines of credit will be next to impossible to get.

We suggest you wait until the car is resold to remove a repossession. Also, wait to see if the lender sues you for any damages or loss.

Then dispute the repossession on your report by sending a dispute letter to the bureaus.

You can write this letter or hire a service to do it on your behalf. This letter must provide an explanation as to why the mark is inaccurate.

Once the bureaus receive it they will conduct an investigation into the listing. They will contact the lender and ask them to verify that the account is; yours, the reported dates, and the balance.

We suggest waiting until the lender receives some form of payment for the debt. This is because then the lender is much less likely to spend the time or money verifying it with the bureaus. If an item is not verified it must be removed from your credit report.

If you have a deficiency judgment you should dispute this mark too. There are rumors that the bureaus do not check public records when investigating a mark. That is where the bureau would find verification of a deficiency judgment.

In summing up, repossessions are removed from credit reports every day. You do not have to feel embarrassed or pay high interest rates every time your credit is run.

Student Loans Defaulted

If you have defaulted on your student loan, you will likely to have to repay this debt and your credit will be ruined. This will put you in a difficult position.

This is what happens when your loan is defaulted on; your account is sent to collection agencies and then there are various collection efforts. The government can garnish your wages, your social security benefits and more.

These debts can be collected upon for life! However you can only have a negative mark on your credit report for a maximum of seven years. This is according to a law that Congress created called the Fair Credit Reporting Act.

A defaulted student loan on your report may cause you to have to pay interest rates of roughly 25% and place large down payments just to be approved. In addition, you will be turned away for a new line of credit more often than not.

However there is hope you can remove this mark from your report and with some luck you may be able to remove the debt entirely. In order to do this you should dispute the collection marks on your report.

A dispute letter to each bureau containing an explanation as to why the mark is not accurate should be sent. For instance, the mark has been reported for seven years already, account is paid in full, not my account, and the like.

Since this is the most difficult item on a credit report to negotiate, we suggest that you hire a credit repair service to dispute it on your behalf. This will give you a licensed attorney fighting for you. Also, there are new laws passed constantly by congress to help protect consumers.

We feel hiring an expert is worth the money since your credit score impacts every aspect of your life. This is a good idea since, compared to the high cost of a low credit score, hiring an expert can be done at very reasonable rates.

Understand that government loans, such as a Stafford loan or the Perkins loan, will be much harder to eliminate from your report. A private loan, such as Sallie Mae, will be easier to remove than a federal loan, but still difficult.

When the bureaus receive your dispute letter they will contact the creator of the negative mark and ask them to verify the debt. They will verify that the account is yours, the dates are correct, and the balance of the account.

The Fair Credit Reporting Act states that any unverifiable mark on your credit report must be removed. Therefore, if the account can not be verified, the negative mark must be removed from your credit report.

It is estimated that 1 in every 4 people have an error on the report that is costing them money in higher interest rates. The bureaus and lenders make errors all the time, but your credit is the one that will suffer. If this mark is in error, be sure to send any documentation that you have with your dispute letter to prove it is in error.

In conclusion, defaulted student loans are removed every day from credit reports. If you have this, it does not mean you will have a low credit score for the rest of your life. We suggest you dispute this mark with the credit bureaus.

How to Remove a Tax Lien From Your Credit

With a tax lien on your credit report your score will be dramatically affected. You should take action to erase this mark from your report.

The first step is to have the bureaus validate the lien. You need to send each bureau a dispute letter.

Unfortunately mistakes do happen on your report; there are estimates that 1 in 4 people have an error on their report.

Once your letter is received an investigation will occur. The bureaus will contact the government and ask them to verify your debt. If it is verified you are going to have to make payment to remove it from your report.

It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.

A tax lien can be collected upon for 10 years, and will stay on your report for 7 years once it is paid. If not paid then you can be reporting a tax lien on your report for a considerable amount of time.

However once you pay in full, wait three months and dispute the mark again. It has been learned that frequently the government will ignore future validation requests from the bureaus once a lien is paid.

This means that the negative mark will be removed from your report if it is not verified. However if this mark is a mistake and not your debt you should demand immediate proof and send any documentation to show this.

Repayment

The state and federal government are willing to negotiate and settle on a reduced payment. It is called an OIC (offer in compromise), this just means that the government is accepting partial payment.

The government will look at; your ability to repay, your income, your assets, and what they expect to recover. Additionally it will help your chances of acceptance, if you attach a letter showing financial hardship.

It may be in your interest to hire a tax negotiator to help with this. However you do not have to just live with this mark on your report.

In sum, you can remove a tax lien and other negative marks from your credit report. You do not just have to live with bad credit.