| If you have bad credit, you may be finding it | | | | At the same time, reviving an old debt that is no longer |
| increasingly difficult to get vital loans. While this is | | | | collectible can actually do additional damage to one's |
| generally a sign that you should try to avoid further | | | | credit reputation. It is best to be aware of the |
| borrowing, there are certain circumstances in which it is | | | | circumstances regarding the debts collect-ability, |
| just vital that you get credit. This may include paying | | | | statute of limitations, and legal and illegal collection |
| rent, especially if you have young children, paying | | | | practices, before contacting a creditor on a very old |
| school fees or paying for medical treatment. A bad | | | | debt. |
| credit rating can also hinder your attempts to get | | | | FACT |
| insurance, rent a home and sometimes get a job. | | | | In December 2003, Congress passed the Fair and |
| Repair Your Credit | | | | Accurate Credit Transactions Act (FACT Act), which |
| If you are facing problems such as these, you should | | | | included the right to a free annual credit report on |
| consider trying to repair your credit rating. Credit repair | | | | request and a number of provisions designed to |
| is a general term often applied to the controversial | | | | improve the accuracy of credit reports. |
| practice of improving or rehabilitating one's financial | | | | On June 4, the Federal Trade Commission finalized its |
| reputation (creditworthiness) among creditors. To | | | | rule for implementing the new consumer right to a free |
| improve a credit rating damaged by poor credit habits, | | | | credit report, rolling it out over a nine-month period, |
| in the long run only one thing will work: changing those | | | | beginning on the west coast in December 2004 and |
| habits. | | | | finishing on the east coast in September 2005. |
| Making arrangements with the creditors to repay them | | | | From 1994 to 2004, the state PIRGs and other |
| is often one of the steps in improving one's credit | | | | consumer organizations have issued numerous reports |
| habits. Creditors may accept slow payment schedules, | | | | showing that sloppy credit reporting agency practices |
| as an alternative to writing off the debt. In some cases, | | | | are at fault for errors in consumer credit reports. |
| creditors may accept a less-than-full repayment | | | | Inaccurate credit reports could damage 1 in 4 |
| (pennies on the dollar). The key here is contact with | | | | consumer's ability to buy a home, rent an apartment, |
| the creditor and taking action to retire the debt. | | | | obtain credit, open a bank account, or even get a job. |