Credit Corner:
Because better credit is just around the corner

Take each bill. You know your needs and wants and where you can plan to cut back not cut out. For example, you have a cable bill each month. Do you need the extra premium channels, especially if you have not watched ShowTime or HBO this month?
If you work a lot or go out to the clubs on that one day a month that you are home. How many times have you called your friend and stated that there was nothing on t.v.? About that telephone bill - do you need call forwarding, speed dial 8, call blocker? Yes, I know it’s a package deal but call the telephone company and see if it can be cheaper. Examine your bill closely. Did you make those long distance telephone calls and does it appear that you call people more than they call you?

I have a solution. Stamps are .37¢. Remember, I speak from experience. I used to have $200-$300 telephone bills and I realized I was calling people more than they were calling me - and they were not sending me money to pay the bill so if my service was cut off, they would never know because they never called me anyway. Get a stamp write them a letter. Next what about Credit Card debt? Are you receiving late fees each month because the due date falls at a bad time each month, on your off pay day, or the due date is the same time around your rent and you would rather have a late fee on credit card debt and have a place to live? Call the credit card company and change your due date - to a date that makes it convenient for your budget. Please do not think this only applies for credit card debt, the telephone company, the cellular phone company will change due dates as well - try it. During the course of conducting seminars and answering questions to many people quite often they ask great questions. Below is a list of the most asked questions:
What is a credit bureau?

A credit bureau now referred to as a credit reporting agency (CRA) is a clearing house of information. There are three – only three credit reporting agencies, Trans Union, Experian, and Equifax. These credit reporting agencies are governed by the Federal Trade Commission, in Washington D.C. These reporting agencies report on your credit report information, such as your present and former addresses, present and former jobs, social security number(s) used, the number of credit cards you have or the number of car loans you have.
What is the FCRA? The Fair Credit Reporting Act – is designed to promote accuracy and ensure the privacy of information used in credit reports (also referred to as consumer reports) Businesses must report fair and accurate information if the information is not considered fair and accurate it must be deleted -that is the law. A copy of the FCRA can be obtained for free from the Federal Trade Commission.

What is bankruptcy? Because consumer debt is at an all time high – there have been a record number of bankruptcies. There are different types of bankruptcies, Chapter 7, Chapter 11, Chapter 13, and Chapter 20. Chapter 7 is known as a personal bankruptcy, and is known as a straight bankruptcy, involves selling off assets, that are not exempt. You can file for a Chapter 7 bankruptcy once every six years. A Chapter 11 Bankruptcy is a business bankruptcy, a Chapter 13 is known as a personal bankruptcy and allows you to repay your creditors, and keep your property, such as your home and car. The court must approve the repayment plan and the period is usually three to five years.
Can my debt fall off after seven years? According to the Fair Credit Reporting Act, debt must be removed after seven years of inactivity – meaning if you have not paid on the debt. Understand the 180 day rule is – 180 days after the last payment is made on any account.
Swygert is a credit counselor with the Credit Corner, 9955 South Post Oak#415, Houston, TX, 77004. Call 713/799-8570 for more information.

Here is the example – You went to Department Store opened a credit card account and charged $500.00 worth of merchandise in 1990. You then decide you are not going to pay it off you will wait the seven years to have it dropped off. In 1996 ABC Collection agency contacts you and states that they will settle the debt for $175 – you decide not to pay the debt collection. You now must wait seven additional years because the debt is a new debt and not the original creditor. HOWEVER if you had a copy of the Fair Credit Reporting Act you could dispute the original debt; because quite honestly the debt in a six year period could change hands or be bought and sold six or seven times. The CRA would have to investigate it and return a result within 30 calendar days – if they do not investigate it and return a resolution the debt must be deleted. Please note you must follow up with the CRA and tell them the 30 day period has been exhausted and that the debt must be deleted. Understand your credit report is only as good as the person entering the data and people make mistakes.