Credit Card Debt Trap #5
By Mike Wayman
Debt traps are not all the same. Let’s say that you’ve fallen behind on debt and now you’re in collections. The collections industry is yet another level of debt trapping that is, by the admission of people in the industry, largely unregulated and the “salespeople” in debt collection often blatantly break the law just to make a buck. They call repetitively even if you’ve claimed bankruptcy. They will even continue to harass you after you’ve had an account included in a bankruptcy. One of the worst parts about these collection practices is that it can harm your credit even more after you claim bankruptcy.
Here’s how collections can hurt your credit even further after bankruptcy. There are a few creditors like auto finance companies and credit card companies that will extend credit to people after a bankruptcy has been discharged. However, one of the most important factors in determining whether or not to extend credit is if the borrower has had a late payment or collection after a bankruptcy. When you get a collection after a bk it really damages your ability to obtain credit in an effort to build your credit back up.
Collections are dangerous, collection companies are out of control and unregulated and you need to deal with collections as soon as possible to avoid problems with your credit after, during or before a bankruptcy occurs.
How And Why Your Credit Score Will Change
By Mike Wayman
How often does our credit score change? What causes a change in our score? Any time our credit report changes, our score can change. What would cause a change? There are several reasons.
You may have missed a payment, or made a payment late. You may be applying for a credit card or a new loan. You might be changing the amount of available credit that you have with a particular company. Perhaps you have defaulted on a loan, or filed for bankruptcy.
Some will find when they apply for a gas credit card, for example, your credit may go down if you update your score. Once the creditor reports to the credit card bureaus of your activity of paying on time, and not keeping a balance, your score should go right back up. After all, your total overall credit has gone up.
If you have stable finances, your score should not be constantly changing. In fact, your credit score may stay the same for many months. If you resolve any debts, or clean up any mistakes in your credit files with the credit bureaus, this will also affect your credit score. Keep an eye on your credit score by checking at least once a year. If it doesn’t change you can be secure and comfortable with your score.
