Credit and frequently asked questions

Athens GA Bankruptcy Lawyers

Credit

Credit is your ability to borrow money. Good credit is important if you want to borrow money.

Credit score

A credit score is a number that helps lenders and others predict how likely the borrower is to make the payments on time. A person’s credit report will show his credit score. Your lender will check your credit report when you apply for credit.

Credit reports can be obtained from credit reporting companies like Equifax, Experian and Transunion.

Your lender provide specific and factual information about their financial relationship with you on regular basis to the credit reporting agencies including information about when you opened up your account, whether you make your payments on time, whether you missed one or more payments, etc. If you have a high credit score, it means you have good credit and so your monthly payments will be lower.

Information on Credit Report

Your credit report will include the following information:

• Personal Identification - Includes key identification information, such as your name, address, date of birth and Social Security Number
• Credit Information - Provides details of your credit accounts and transactions and shows if payments are being made on time
• Banking Information - Includes information on your bank account
• Public Record Information - Contains information about secured loans, bankruptcies and/or judgments
• Third-Party Collections - Contains information about any involvement with a collection agency trying to collect on a debt
• Inquiries - Includes all organizations or individuals that have requested a copy of your credit report in the past three years

Who uses my credit report?

When you apply for a loan or credit, the lender will ask for your credit report to determine the risk factor involved in providing credit to you.

Other factors that can affect your credit application

The following factors can also influence the lender’s decision:

• Your debt to income ratio - The amount of money you owe compared to how much you make.

• Length of your credit history – If you have a long credit history, the lender will consider your application favorably.
• Payment history – Your payment history will let the lender know if you are regular in making your payments.
• Other credit applications – If you have applied to many lenders at the same time, you may be reducing your chances of getting approved.
• Stability – the length of time you have been at a job, the length of time you have been staying at the same address
• Education – Your level of education also plays an important role. Lenders consider school drop outs more risky than a college graduate.

Getting your credit report

Contact any of the credit reporting agencies to get a copy of your credit report:
Equifax
Experian
Trans Union 1-800-916-8800

You can get a free credit report every year from each nationw ide credit reporting agency. If request for additional credit reports, you will be charged a nominal fee which is generally $11.

Error on your credit report
If you find any error on your credit report, you must dispute the error by informing the credit reporting agency. The agency will then investigate and must correct or delete inaccurate, incomplete or unverifiable information within a month. If the credit reporting agency investigates and concludes that the information is correct, it can continue to report the information. You will receive a copy of the investigation. If the investigation resulted in any changes in your credit report, you will also receive a copy of your credit report with the changes. You may ask that anyone who has recently received your report be notified of the change. You can ask the credit reporting agency to add a brief statement to your file if the dispute is not resolved by the investigation.

Identity theft

Inform the police if you are a victim of identity theft.  You must inform the credit reporting agencies so that they can issue a fraud alert notifying potential lenders about your identity theft.

Credit Repair

While credit repair cannot restore your credit to perfect status, it can result in some improvement in your credit score. It is a time consuming process and requires patience. It is perfectly legal. A successful credit repair can get you a credit card, home loan, auto loan, refinance, etc., at better interest rates.

Our bankruptcy attorneys are based in Athens, GA (Georgia). From our offices, we help clients in Watkinsville, Carnesville, Elberton, Homer, Jefferson, Danielsville, Lexington, Hartwell, Winder, and Clarke County, Oconee County, Elbert County, Franklin County, Banks County, Jackson County, Madison County, Hart County, Barrow County and Oglethorpe County, and Ben Epps Airport, University of Georgia (UGA), Piedmont Judicial Circuit, Northern Judicial Circuit, Athens-Clarke County with bankruptcy filing. We can help you file for bankruptcy.