My Credit Rating Guide

Financial institutions are particularly fussy about negative listings on your credit record. There are two reasons for this. Firstly, negative listings are an indication of bad faith displayed by the individual. Secondly, when a person takes due care and diligence over their personal affairs, this is an indication that they will exercise similar skills in the affairs of the employer. While most financial institutions have been checking the credit record of job applicants for years, but there is now a growing trend for employment agencies to check the credit record, usually at the insistence of the prospective employer. debt consolidation and credit

Negative listings broadly fall into two categories, namely debt related default listings, and incorrect listings. The former includes judgments, bank defaults, defaults and payment information, and are an indication of failure to pay an obligation entered into. The latter should be taken up with the credit bureau in order to get the incorrect information removed. Make sure you get a reference number from the credit bureau. If the matter remains unresolved for a period of more than thirty days, then apply to the office of the Credit Information Ombud for assistance, contactable on 0861 66 28 37. check credit rating

The credit record is increasingly becoming a significant indication of a persons credibility, says Stephen Logan, Director of Credit Health, a company specialising in assisting individuals to settle their debts and improve their credit rating. Credit grantors use the record to make risk decisions, and employers are looking for reliable, ethical individuals who display good values in regard to their financial obligations. improve credit rating

Each time anyone draws off your credit report, this fact is listed on your credit record, and the information remains on the record for a period of four years. explains Logan. As a result, its not advisable to casually apply to many companies, as employers and creditors will view this as a sign you have had difficulty in getting a job or in obtaining credit. credit online rating report

Assistance Collections crash course

By Credit Health Sometimes, when luck is running against you, it is possible to form the belief that all hope is gone and no one can help. While this is almost never true, becoming a victim of the legal debt collection system may make you feel like a lone Springbok with a target painted on your butt! The sharp end of the legal debt collection system is your local Sheriff. If you grew up watching US Western movies your mental image of a Sheriff may be that of a proud defender of peace loving citizens. In the movies, your Sheriff was constantly on the look out for any danger that may threaten his town folk and he would take the time to help little old ladies across the street while simultaneously engaged in a gun battle with the James Gang. credit score rating scale

This romantic image is not what your local Sheriff is about. His job is to: bad card credit credit people

• Serve summonses and notes free credit rating report

• Execute writs of execution credit rating scale

• Demand monies and costs reflected on the issued writs bad credit rating

• Attach assets credit rating agency

• Remove and store attached assets credit rating canada

• Sell these assets in execution bad credit mortgage rating

• Execute warrants of arrest good credit rating

• Evict defendants from occupied premises credit score rating chart

• Enforce any order of the court credit mortgage rating poor

During the process of achieving any of the above goals, the Sheriff is NOT obliged to read you your rights, or explain what you could immediately do to lessen the impact of his actions. So, lets reel back the movie a few scenes and take a slow motion look at everything that may have happened to dramatically increase the possibility of a forced repossession of your worldly goods. Defaulting on Debt Repayments good credit rating score

Research shows that at least 90% of people want to fulfil the obligations they have agreed to. We have seen cases were people have literally gone without their proper food requirements just to pay enough money to creditors so that they can hang onto the hope of regaining a normal existence. poor credit rating loan

When debts have piled higher than your ability to service them, or you have simply lost your job, the most effective remedies are generally the last things you would be aware of. Understanding how you could feature in such a horror movie will help you to effectively react to each and every threat that presents its ugly head. bank credit rating

Being listed at a Credit Bureau

Most people have heard the term Blacklisting but few consumers understand the sequence of events that will lead to, and result in, their being listed. When it becomes impossible to service all or any of your debts your slow payments will raise a flag on the computer screens of most creditors and lending organisations. This flag tells them to give you a call and gently remind you of your obligations. In the typical fashion of denial, most people will re-commit to making payments on time even though they know that theres little or no spare money coming in the door. credit card for poor credit

Once your predicament becomes obvious to a lender they will begin reporting your slow payments to one, or both of the main Credit Bureaus TransUnion and Experian. These defaults or adverse information listings will prevent you qualifying for credit, at least until the arrears are paid off. business credit rating

These bureaus dutifully record your progress, down the slippery slope to defaulting on your debt obligations, so that any future lender will be able to read your history like a book. Your rights: Remember you have the right to add your explanation of why you either; do not owe the money or, to explain the circumstances which resulted in your defaulting. The credit bureaus will add your explanation, up to a maximum of 1, 000 words. Once the debt is settled you can have most if not all of the adverse information removed. moodys credit rating

Handover to collection agents

You will realize first, and your creditor a month or two later, that it has become impossible to service your debt repayments. In an attempt to stay sane you might stop taking phone calls from the collection departments of your creditors. When they can see that you are avoiding them your case steps up in urgency. This is when your file will be handed over to a collection agency, which is much more experienced in the art of pressuring you to make payment. The collection agents intimately know the law surrounding your debt obligations and they usually have the knack of making you feel as though you are actually in worse trouble than you currently are. To make their presence appear more ominous, they are often affiliated to a law firm. credit card with bad credit

Your rights:

Collection agents must be registered members of the Council for Debt Collectors ( http://www.debtcol-council.co.za ) and they must observe that bodys Code of Conduct. This Code of Conduct is sometimes ignored by debt collectors but it is easy to obtain a copy at the above mentioned website, and an offending debt collector should immediately be referred for disciplinary action in regard to any breach of the Code of Conduct. Knowing your rights in terms of the Code of Conduct will ensure the debt collector acts politely and does not take undue advantage of your position. personal credit rating

Threatening Phone Calls and Letters

While your creditors may have found it difficult to get you on the phone, collection agents have a much more commanding tone and they will say things, to whoever picks up the phone, that make you believe that its in your best interest to talk to them. Which it often is! Once you are on line, a careful series of phrases will be used to point out the dire consequences of any further payment avoidance and you will be asked to commit to a firm payment schedule. The new payment schedule will usually include substantial collection costs. Obviously, it would be better for you to find a way to settle problem debts before the matter arrives at the magistrates court, but a debt collector may not feel obliged to suggest some of your best options. unsecured loan for bad credit

By then the threatening letters of demand will have begun to arrive. They will suggest that you are on the verge of receiving a judgment and losing a large part of your worldly goods. While this outcome may well be in your future, unless you quickly do something constructive, the collection letters are designed to make you feel that you are just about to have the financed items repossessed and a substantial portion of your household contents confiscated. credit rating company

Your rights:

Letters of demand are the first step required before a summons can be issued. It is important to contact whoever sent the letter and arrange suitable repayment terms and request a statement. This should be done in writing and sent by registered post or delivered by hand to the person who sent the letter. Some unscrupulous collectors pretend they ever got your request. Although it is illegal some collection agents make the letter of demand appear like a summons, this is a breach of the Rules of Court and any company acting in this way is subject to criminal and civil proceedings. Always respond in writing, preferably by registered post, and always add the words Without Prejudice as you do not want any admission of liability on your part to be used against you at a later date. canadian credit rating

The possible issuing of a summons

It is assumed that you will receive the letter of demand within 2 or 3 days of posting and, from then, the letter will state that you have 10 days to make payment. If you fail to respond within this time frame, the collection agent will arrange for a summons to be issued, which gives you 5 days to notify the creditor that you intend to defend yourself. credit union rating

The summons has a second page on which you can indicate your wish to defend yourself. It is always best to fill in and deliver this section to both your creditor and the clerk of court to avoid having a default judgement awarded against you. Remember the creditor or their attorney must sign the original summons showing they have received notice of your intention to defend the matter and the clerk of court must stamp the original summons alongside the creditors attorneys stamp to show they are aware you intend to defend the matter. Keep a copy of this to ensure you can reverse any judgment mistakenly given by the court. corporate credit rating

If you have a truly understandable reason why you have been unable to make payments to your creditors, it would now most certainly be in your best interest to gather your evidence and prepare a defence that the magistrate might accept. Suitable payment terms can be agreed to rather than having the court award payment terms that you cannot afford. credit rating fix

Your rights:

You can represent yourself in court. Most people fear the courts and prefer to appoint an attorney to represent them however, it is your right to present your case to the Magistrate or Judge and no court will issue judgment against you unless you fail to respond to the summons or fail to show that you have some form of defence. bad credit loan personal

The taking of a default judgment

Not responding to any communication with a creditor or collection agent is usually a bad idea and not responding at this late stage in the proceedings to the summons is a very bad idea. By failing to present your case you will have given the collection agents an open invitation to request a default judgment. Once this is issued, your property ownership rights will be substantially compromised; the door will then have opened for an invasion of your privacy, comfort and dignity. credit how improve quickly

Your rights:

Remember, should you fail to respond to the courts summons you will be giving up your right to defend yourself. Always respond to the summons because even where you clearly owe the money you will often be able to avoid judgment, and at least ensure that the Magistrate imposes reasonable repayment terms. It is usually best to approach an attorney to represent you, however, if for any reason you cannot afford an attorney, make the effort to represent yourself. Magistrates are often helpful and they are also human, so there is no need to fear them so long as you show them the respect they deserve. fico credit rating

Enforcing the default judgement

In effect, a judgment can seem like a long-term sentence of severe financial restriction if you do not, or cannot, take action to clear up the mess. This legal ruling will be reported to the major credit bureaus and they will list the magistrates order on your credit record. If you do not take steps to get this account settled and the judgment set aside or rescinded, the listing will remain on your credit record for the next 5 years. improving credit rating

At this stage of the game you must either: mortgage credit rating

1. Forget about financing anything else for at least five years, or average credit rating

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