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Wednesday, May 30, 2007

Just a short note for the day. I have received a LOT of feedback on my first blog. Who knew? Anyway, I have been told to be personal (first person) and not second person when speaking. This is a little unusual for me as all my business writings are more second or third person. But I will try. Forgive me if I slip back and forth.

I have received several excellent comments for future blogs:

1. How to clean up your credit;
2. What do the FICO scores mean?;
3. How to finance college;
4. Is there still 100% financing available?; and
5. Do I really need a Real Estate Agent when buying or selling a house?

So I will take these one at a time over the next several weeks and give you my best thoughts on each subject. I won't necessarily take these in the order above, just what seems the most fun to write on next.

In the meantime there are two video's on the website under "Power Tools" that can give you a head start on cleaning up any credit blemishes. And don't forget to sign up for HomefindersClub.


1 comment:

Terry McComas said...

Great topics! Under the heading, "How to Clean Up Your Credit", I'd like to offer the following summary on how long derogatory information sticks around.

How Long Does Information Stay on a Credit Report?

Credit information can, and usually does, stay on a person's credit report for seven years.

Collections stay on the report for seven years from the date of last activity – whether that is the date that the account was filed as a collection or the date the account was paid in full.

Here's an example:
"Jane Borrower" had a collection for $300 filed against her in October of 1994, and she hasn't paid it. It is now September of 2001, so in a few weeks that collection can come off of her credit report. (She will probably have to request of all three credit bureaus that they take it off.) However, Jane has applied for a loan today, and the loan officer tells her that she has to pay off that debt in order to be approved. Since she has the money, she pays it off. Because the date of last activity is now September 2001, the collection will show on her report until September 2008...another seven years!

Bankruptcy information can stay on a credit report for ten years.

Information about foreclosures is reportable for twelve years from the date filed.

Garnishments, judgments, and tax liens can stay on the report for twelve years from the date of entry OR for seven years from the date they were satisfied.

Dismissed garnishments, judgments, and tax liens are not reportable.

A consumer can (and SHOULD)request copies of his or her credit report from the three credit bureaus (WITH SCORES) and dispute information that is incorrect. Incorrect information can be corrected or removed, but correct information (good or bad) usually stays on the report for the period allowed.

Only the credit grantor or credit bureau can remove correct information – the consumer cannot remove it.