|
Within this segment you will find information concerning establishing
credit and consumer credit counseling services.
Establishing Credit: What Can You Do?
Always pay your bills on time.
Open a checking account.
Open a savings account.
Apply for a store card.
Take out a small loan.
Get a gas card.
Consider a secured loan or card.
If turned down, find a co-signer.
 What
Do Creditors Consider?
Amount of money you make.
Length of time on the job.
Length of time at the same address.
Other credit you have.
Timely bill paying.
Real property you own (house, car)
Check bouncing history.
Monthly contribution to a savings or similar account.
Prior credit history.
These questions are considered when an institution decides whether or
not to give you credit. The importance of your answers will be different
based on what the lender is looking for.
A creditor's overall concerns include the
following;
Do you have the ability to repay? Your income and other credit
commitments are taken in to consideration.
What are your assets? In other words, what do you won? Remember, a
savings account is a very important asset.
What is your attitude? When you have used credit before, have you
always paid it back as agreed.
Why Would You Be Denied?
Incomplete application submitted.
No credit history or short history.
Low income.
Short job history.
Short time at residence.
Too much credit.
Slow payment history/late payments.
History of bounced checks.
Judgments, repossessions, and/or bankruptcy.
Can't Make a Payment?
Call the person or company that you owe. Don't wait for them to
call you. Explain the situation. Perhaps there as been a job loss,
sickness, or family emergency that has made it difficult to keep up with
payments.
Have your plan for repaying the debt ready to discuss with the
creditor when you call.
Make the plan realistic. If the plan is realistic but the person
won't accept it, ask to talk to the supervisor. If the supervisor won't
accept your plan, call your local Consumer Credit Counseling Service.
When your plan is accepted, do your best to follow through. If
something happens and you can't do what you agreed, call the creditor
immediately.
Keep a record of the names and telephone numbers of people with
whom you have discussed your problem and solution. Also, keep a record
of the dates.
Follow up your phone conversation with a letter briefly stating
what was worked out. Keep copies!
Keep in contact with your creditors until the problems have been
solved.
Collection Agency Practices
There are many rules governing what collection agencies ad their employees
can and can't do. The Fair Debt Collection Practices Act of 1978 was
designed to eliminate abusive and deceptive debt collection practices. For
more specific information concerning debt collection practices see Privacy
-
Collection
Agency Practices.
 Consumer
Credit Counseling Service
Many families are burdened by the
weight that money problems bring. Financial problems often lead to stress
in relationships, personal and work-related problems, and can cause
families, businesses and even countries to collapse.
The root of the problem is the lack of a strong financial foundation
and a realistically constructed budget.
Consumer Credit Counseling Services (CCCS) can help you design
a blueprint for your family's financial health. CCCS has professionals on
staff to help you learn how this can be accomplished.
Description of Services
Consumers who are experiencing, or are at risk of developing, financial or
money management difficulties are the target population of this service.
These problems are addressed through budget counseling, a debt management
program, and consumer education.
Budget Counseling
Budget counseling assist persons in developing a realistic budget,
improving money management skills, and solving financial problems. This
service is offered free of charge to the general public.
Debt Management Program
The Debt Management Program, an alternative to
Chapter 13
bankruptcy, provides consumers the opportunity to participate in a plan
for the orderly liquidation of their debt. It is designed for persons who
need the agency's assistance in developing and administering a repayment
plan. The basic requirement for participation is that clients have
sufficient income to repay their debts according to the plan that is
agreed upon with their creditors. Usually, the plan will involve a lower
monthly payment to grantors of unsecured credit (such as credit cards),
with the balance being paid off over an extended period of time.
The CCCS acts on behalf of the client/customer in negotiating a
repayment plan with creditors. The creditor voluntarily decides to accept
an adjusted payment, just as the client freely chooses to participate in
the Debt Management Program.
Clients in the Debt Management Program are charged a low percentage of
their monthly deposit, up to a maximum set by your particular state laws.
Some state laws prohibit this fee. Creditors are asked to contribute a
percentage of the funds returned to them by the program.
Educational Programs
Educational programs are available for presentation to agencies, churches,
employee groups, etc. Topics include: cash crunch tips, spending attitudes
and patterns, an alternative to Chapter 13 bankruptcy, managing your cash
flow more effectively.
Office Locations
Check your phone book and/or call your local CCCS for the location nearest
you. Funding to support the service is received from charities such as the
United Way, client fees and creditor contributions.
Back Forward
©AllAboutCreditRepair.com 2001-2005
The above Consumer Credit Information is provided by the Federal Trade Commission, Washington D.C. |
