Category Archives: Credit and Bankruptcy

The Effects of Bankruptcy and Foreclosure on Credit History

 

It is important in American society to have good credit history. Without a good credit history, you often cannot rent property, get loans, get some types of jobs, and you will likely be paying much higher for those rental property and loans when you can get them. You may also have to pay larger deposits for the essentials of living, like utilities. Nevertheless, probably the greatest effects on credit reports resulting in a poor credit history are caused by filing for bankruptcy protection and/or having a foreclosure show up in your history. Continue reading

Blogs About Credit Ratings Might be Paying Off

The credit ratings bureaus may be paying more attention to blogs than consumers think. The three major credit bureaus, Experian, Equifax, and TransUnion, have recently developed a new scoring model that might help millions of people who in the past had little or no credit. Continue reading

Debt and Resetting the Statute of Limitations in Your State

Wipe our Debt

Wipe our Debt (Photo credit: Images_of_Money)

Whether or not you have reset the statute of limitations for a debt is a touchy subject for debtors who have owed a debt over time. Every state law varies as to when and how the statute of limitations actually works. Continue reading

FTC Enforces Law on Credit Repair Companies

Seal of the United States Federal Trade Commis...

Seal of the United States Federal Trade Commission. (Photo credit: Wikipedia)

According to recent news articles, the Federal Trade Commission (FTC) has begun broader enforcement of the law for how a credit repair company operates its business and advertisements. Continue reading

A Credit Report and What the 2010 Dodd-Frank Law Means for It Today

Consumers are entitled to a free credit report, but the 2010 Dodd-Frank law may not have been succeeding in providing an accurate report for debtors until now. According to recent news reports, the Dodd-Frank law is just now forcing regulation of the three credit reporting agencies: Equifax Inc., TransUnion Corp. and Experian Plc. Continue reading

5 Steps to reach your saving and retirement goals

saving and spending
Whether you are saving for retirement or you are digging yourself out of credit card debt you need practical ways to cut costs and to develop a new spending plan. Maybe you have not considered saving for retirement, which according to the research firm Hearts & Wallets should  be at least 10 times your annual pay, but it is possible to start saving a small amount and not live simply paycheck to paycheck. There are simple ways that you can reduce your daily costs of living and begin to be financially secure: Continue reading

Identity Theft- Replacing your SSA Number

If you have had your Social Security number stolen and misused you are the victim of identify fraud, and there are immediate steps you need to take to protect yourself. Unfortunately, identify fraud is very common and thousands of individuals face this threat ever year.

Ideally, every year you are requesting a free copy of your credit report and reviewing it to ensure that your information is accurate, but you may suspect identify fraud at any time if there is suspicious activity on your checking accounts or credit card statements. The most common ways thieves may steal your identity include:

  1. Stealing your wallet
  2. Stealing information from unsecured online sites
  3. Getting discarded information from your trash
  4. Posing as a legitimate source such as a bank, credit card company or employer.
  5. Buying personal information from sources

Social Security numbers and card replacements are all administered by the Social Security Administration and they have outlined very specific steps that you should take immediately if you suspect you are the victim of identity fraud.

Steps after your SSA number is misused:

  1. Place a fraud alert notification with one of the credit bureaus (Equifax – 1-800-525-6285
    Trans Union – 1-800-680-7289, Experian – 1-888-397-3742).
  2. Review your credit report for any unusual activity. For example, if there are accounts that you did not open or debts that you did not incur you need to communicate with each company that is involved and close the accounts.
  3. File a report with the local authorities.
  4. Contact the Federal Trade Commission and file a complaint.

Requesting a new Social Security Number from the Social Security Administration

According to the Social Security Administration they do not generally give new numbers to individuals. Their website lists very specific circumstances when they will assign a new number:

  1. Sequential numbers have been assigned to members of the same family and are causing problems
  2. More than one person has been assigned, or is using, the same number
  3. An individual has religious or cultural objections to certain numbers or digits in the original number.
  4. A victim of identity theft continues to be disadvantaged by using the original number.
  5. Situations of harassment, abuse or life endangerment, including domestic violence has occurred.

The Social Security Administration says that if you want a new number you will have to complete an application and make sure you have evidence of your citizenship, immigration status, age, evidence of legal name, identity, and evidence that you need a new Social Security number. This means that if you have had your SSA number stolen that may not be enough. You will have to prove that keeping your number will continue to be a disadvantage to you.

The SSA will need the original copies of your documents which must be brought with your application for a new number to the nearest SSA office. The most important thing is to take immediate action. Do not wait but eliminate the impact of the fraud as soon as possible.

Related Topics

Can declaring bankruptcy eliminate my debts?

 


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Even Banks Get Scored for Economic Reliability

Financial ratings of european States by Moody's

Financial ratings of european States by Moody's (Photo credit: Wikipedia)

To individuals who might be facing hard economic times like a bankruptcy, credit reports and their scores can be very important. Credit reports measure perceived economic reliability in debtors. A higher economic reliability can get you into a place to rent, provide a credit card for travel or car rental, and even increase your chances for landing certain jobs. But did you know that even banks get scored for economic reliability?

Moody’s and credit rating agencies like them, rate banks and their transactions similar to how a credit rating agency rates individuals.

According to recent news articles, Moody’s downgraded 15 banks in the United States, the United Kingdom, and Europe. The results of these downgrades was that the United States stock market took an immediate dip after hearing the news.

Four of the five largest banks in the United States received a two-notch downgrade. Bank of America was the only one of the five not receiving two notches, but since it was already near “junk” status, it received only one notch in the downward movement.

The results of downgrading banks is that the banks will have to post additional collateral in order to trade in derivatives, highly risky contractual instrument transactions. Derivatives were at the center of the U.S. Government bailouts for the banks back in 2008.

Led by Greenspan of the Federal Reserve, deregulation of the banking system began to occur during the 1980s. Derivatives, once part of the stock market exchanges, began being traded over the counter in unregulated venues. Recent regulation changes made by the Obama Administration is slowly beginning to change back how banks do business.

Moody’s and companies like them are beginning to follow the lead of our Government by clamping down on the economic violators using poor economic practices. These downgraded banks are now being shown to the public that they are not necessarily reliable banking institutions any longer. Moody’s even recently downgraded the United States bonds as well.

Just like when creditors are less likely to do business with you as a debtor if you have a poor credit report, you should beware of doing business with banks which have poor financial ratings. You can research banks ratings through Moody’s by going to this website: http://www.moodys.com/researchandratings

There is not too much to read into the downgrades of banks other than the fact that the banks have been hurt like the rest of us in the poor economic conditions. Banks, like any individual or business, can get into economic trouble. They can file bankruptcy like anyone else in America.

When banks do get into economic trouble, they normally pass their losses down to their customers like any other business will do, especially when they have a cash flow problem. Knowing that a particular bank is having problems might help you make an informed decision in whether you want to conduct business with that particular bank.

Providing a higher economic reliability promotes economic growth and financial well being. Measuring this reliability has been a useful tool for conducting business in America, and yes, even banks get scored for economic reliability.

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