Negative Credit Items Are you having problems getting an auto loan? Have you been turned down for a personal loan, a credit card or a mortgage. There are some negative items that can appear on your credit report that will keep you from obtaining those credit items you desire.
Late Payments
A late payment is a payment that is made after the date that it was due. If your payment is received after the date your creditor sets as being due, you are subject to late charges. Late charges is a penalty that is charged when a payment is not received by the specified due date. This can cause an increase in your interest rates on that account and any others that check your credit history.
Charge Off
A charge off is a loan or credit card debt written off as uncollectible from the borrower. The debt, however, remains valid but the original creditor no longer expects to collect the balance owed on the account.
Repossession
Repossession is when a creditor seizes property, such as a car or a house, because payment has not been made. If you fail to make any payments or at least fail to make payments on time, the creditor who owns the contract has the right to take back the item.
Foreclosure
Foreclosure is the legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
Bankruptcy
Bankruptcy is the legal process in which a person or firm declares inability to pay debts. Any available assets are liquidated and the proceeds are distributed to creditors. A person or firm may be declared bankrupt under one of several chapters of the federal bankruptcy code: Chapter 7, which covers liquidation of the doubter's assets; Chapter 11, which covers reorganization of bankrupt businesses; or Chapter 13, which covers work-outs of debts by individuals.
Discover how Lexington Law Firm can help you clean up your credit report and erase negative items.
What You Should Know About Credit |