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Re: Charge Offs HELP PLEASE!!!


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Posted by BJ on September 22, 2001 at 17:59:23:

In Reply to: Charge Offs HELP PLEASE!!! posted by Anne on September 21, 2001 at 21:40:55:

Anne,

First off, let me say that many Americans are concerned about your issues stated here. They are good questions, and would encourage you to investigate further even after the answers you may find here.

The term "Charge-Off" is an accounting procedure which allows businesses to write off as an expense to the business against income earned by a company when filing quarterly taxes to the IRS. So if you debt to a company is 1k, and paid 500 of that money, and the did not pay again for at least 90 days(quarterly), the business can "Charge-off" the difference that is owed to the company, in this example 500 dollars.

Secondly, about your credit report. You and your husband should check your credit reports at least once a year if not twice. In order to properly dispute inaccuraccies, you must know what they are by pulling your credit reports. This is very important. Once a creditor/collection agency has listed an outstanding debt on your report, it cannot stay on there for more than 7 years. This not to say that it doesn't happen, leading back to my initial statement of pulling both your credit reports. If after 7 years has passed, and you still see them there, dispute them with a letter to the appropiate credit bureau. Once they have investigated and found that your letter is of truth, they will remove, but again, it is up to you to keep w/your own personal affairs.

Thirdly, if you don't pay on a debt, it is does not mean that you don't owe the debt. Although there are Statutes of Limitations of time limits, that a sueing party can have legal recourse against you, until they send you a letter stating to you that the debt has been forgiven, it is owed. And if they forgive the debt, usually the IRS considers this "income" to the tax payor and can be used to add to your overall taxable income for that year.

Mortgage companies look at the same credit reports that you look at(to a certain extent). If they see accounts that are not paid, they will usually require you to pay them before the issue you a loan. If your goal is to buy a house in the near future, I HIGHLY RECOMMEND THAT YOU AND YOUR HUSBAND START CHECKING OUT YOUR CREDIT REPORT MORE FREQUENTLY THAN YOU ARE PRACTICING NOW.




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