Credit Repair

Neither is automatically faster — they build different kinds of credit history. A secured credit card builds revolving credit and lets you show low credit utilization, which can move your score quickly. A credit-builder loan builds installment history through fixed monthly payments and forces you to save. For most people, a secured card has the …

Secured Credit Cards vs. Credit-Builder Loans: Which Rebuilds Credit Faster? Read More »

After a job loss, the most important things to do are file for unemployment right away, confirm your final paycheck and any unused vacation pay, secure health coverage, cut your spending to essentials, and contact creditors before you miss a payment. Once those are handled, protect your retirement savings, keep your credit intact, and — …

How to Rebuild Your Finances After a Job Loss Read More »

For most people, a single hard inquiry lowers a FICO score by fewer than five points, according to FICO. The effect is temporary: a hard inquiry stays on your credit report for two years, but it only affects your FICO score for 12 months, and its impact is greatest in the first few months. If …

How Many Points Does a Hard Inquiry Actually Cost You? Read More »

If you’re new to the United States, you usually start with no U.S. credit history, even if you had excellent credit in your home country. Credit reports generally don’t transfer between countries. The good news is that you can build U.S. credit quickly: get a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), …

Credit Repair Tips for Immigrants New to the U.S. Credit System Read More »

When you fall behind on a private student loan, the lender typically charges late fees, contacts you and any co-signer, and — after the loan defaults — charges it off and sends it to a collection agency, sells it, or sues. Unlike federal student loans, private lenders can’t garnish your wages or take your tax …

Private Student Loan Collections: What to Expect Read More »

Student loan rehabilitation is a federal program that takes a defaulted federal student loan out of default after you make nine voluntary, reasonable, and affordable monthly payments — each within 20 days of its due date — over ten consecutive months. Your payment is usually based on your income and can be as low as …

Student Loan Rehabilitation After Default Read More »

Chapter 7 and Chapter 13 are the two types of bankruptcy most individuals use. Chapter 7 wipes out most unsecured debts — such as credit cards, medical bills, and personal loans — in about three to six months, but any property that isn’t protected by exemptions can be sold to pay creditors, and you must …

Bankruptcy Explained: What Chapter 7 and Chapter 13 Actually Mean Read More »

A Form 1099-C, Cancellation of Debt, is a tax form a lender sends when it cancels or forgives $600 or more of a debt you owed. You usually get one after settling a credit card, loan, or collection for less than the full balance, after a short sale or foreclosure, or after certain other events …

What Is a 1099-C and Why Did You Get One? Read More »

Foreclosure is the legal process a mortgage lender uses to take back and sell a home when the borrower stops making payments. It doesn’t happen overnight. Under federal rules, most mortgage servicers can’t begin the foreclosure process until you’re more than 120 days behind, and in California the nonjudicial process then takes at least several …

Foreclosure: What It Actually Means and How to Avoid It Read More »

When you’re genuinely struggling, you can ask creditors to lower your interest rate, reduce your minimum payment, waive fees, change your due date, defer payments, or — once an account is seriously behind — accept a settlement for less than the full balance. The keys to a good outcome are preparation and precision: know exactly …

How to Negotiate With Creditors When You’re Genuinely Struggling Read More »