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A Beginner’s Guide To Bad Credit

Things that have gotten you in this state: A history of late payments, poor credit scores, inadequate credit lines, etc… Some even blame you. In this article, we thought we’d walk you through the process by which you should consider getting your first bad credit report. If you don’t agree with our assessment that you’ve been out of work for too long, we’d be shocked!

‘ Don’t fall for the trap they created for us

We first encountered the debt problem on our way to writing this article and then on our way to bankruptcy. Both parties involved have now come in with a clear picture of the problems. We continue to hear from a hundred different people claiming that their credit history has worsened since they entered the credit industry, most of them referring to mounting bills and default judgments while declaring bankruptcy for the first time.

And it is easy to see the way their goals have responded. Credit experts and legislators talk often about how bad credit can lead to ‘madness,” a condition that afflicts even the best of us. Yet every year, millions of Americans are served by phone calls, mail, or e-mail from Credit Fraud and Abuse organizations attempting to figure out what is known as a Cover-Up. In most cases, the frauds are quick to downplay the problem for as long as possible, while continuing to blame the victims for the trouble they now face. How long a cover-up is the same as any other ‘Credit Disaster’ calls? The answer is obvious. If the Cover-Up continues for as long as possible, it serves no real purpose other than to make public the money that Credit Fraud and Abuse already makes money from ‘good lawyers’. We won’t go into detail about the actual legal aspects of this cover-up, since those will be the focus of this article.

According to court records, approximately $38 billion has been paid to Cover-Up clients so far this year alone. The majority (93.7%) has been made from liens and judgments against creditors. Unfortunately, a judge has ruled that Bank of America and the National Football League must pay over half (46.5%) of the victims and Bank of America has announced that it’s going to pay the remaining (42.6%).

What caused this massive shortfall in funding? The most obvious cause is many of these ‘good’ people, mostly young men and women, have no credit histories. They have had their mortgages and car loans declined and their personal loans and ATM’s swiped. According to the Federal Trade Commission, credit card delinquencies exceed $12,000 in 2006 (2.2 million in 2006).

What causes these problems? The major culprits cited by the FTC are these:

‘ Unsecured debts
‘ Revolving credit accounts
‘ Subprime mortgage
‘ Personal bankruptcy

There are plenty of other other problems that will cause creditors to respond by declaring your bankruptcy. For example, payday lending is a serious financial problem. Too many borrowers face the real embarrassment they deserve and the embarrassment of being tied down with high interest loans for the next five years. Payday loans are also a form of ‘hidden’ debt because the borrowers are not aware they are lending money to anyone else, so it is easy to mistakenly believe they are ‘hidden’ loans.

Bad Credit History

Unfortunately, there are some who would not consider getting a credit report from a credit bureau for being ‘a delinquent person.’ In fact, not all people are delinquent. Mistakes happen and many people keep making them because they think that every time they get a report of a problem they will make a change, whether they realize it or not. That being the case, though, several people have ‘revoluted’ their accounts and filed for bankruptcy. The only way to stop this is get a bankruptcy lawyer in place who specializes in bankruptcy.

The Creditors in Charge

As a result of the National Credit Report Theft Act reform law, most creditors are under the direction of the three major consumer reporting companies – Experian (1-888-397-3742) and Trans Union (1-800-916-8261). Unlike the National Credit Report Theft Act, both of these consumer reporting companies can investigate your unpaid debts, correct bad or inaccurate information in their reports, and remove any incorrect content from their databases.

Because of this reformulation, almost all creditors will now begin setting up procedures to help them track down and resolve credit disputes. Prior to submitting a claim, all creditors must provide you with a copy of the National Credit Report Theft Act, along with any required documentation. During this initial period, the creditors will contact individual consumers who have recently filed a claim, ask them their names, and provide them with a list of past addresses and phone numbers to call.