|
||||||||||||||||||
|
|||||||||||||||||||
Keep Your House Of Cards In Order
We have already discussed what type of information is likely to appear on your credit report and where to obtain your credit history. Once you have received the files, review the contents immediately. Most likely, the reports will not contain all your credit activities. Not every lender furnishes credit information to every bureau. Most bureaus will accept additional information from you.
Mistakes are frequent. By some estimates, as many as 50 percent of all histories contain errors. If you disagree with any of the information in your report, you have the right by law to dispute it. Inform the credit bureau of the error. The bureau must investigate the mistake with the lender that supplied the information.
The bureau is required to remove from your record any errors the lender admits are there. If the lender will not change the information, you have the right to insert a maximum 100-word rebuttal that must be sent to all creditors seeking copies of your history in the future.
Certain types of negative information must be removed from a credit report after a specified number of years. For example, a judgment against a person must be removed after 10 years--with on caveat. The removal requirement applies only to judgments that have been satisfied.
According to the Consumer Credit Counseling Service (CCCS) of Greater Dallas, Inc., a nonprofit affiliate of the National Foundation for Consumer Credit, any judgment involving an unpaid debt will remain on a person's credit history until 10 years after the date the debt is repaid in full.
One important point. Do not pay to have a service supposedly "clean up" your credit record. Some of these companies have been charging hefty fees for services you can handle just as well yourself and at no cost except for the time involved.
Once your credit history is in order, it is time to review your debt. Total monthly non-mortgage debt payments should not exceed 15 percent of your monthly after-tax income. If your debt ratio is higher than 15 percent of monthly after-tax income, develop a budget to par it off as soon as possible. Be sure to make room in that budget to pay yourself a small monthly sum so that you can begin an investment program. Regular and consistent investing, however modest the monthly sum, is the only way for some to obtain financial freedom.
Note: Dollar-cost-averaging does not assure a profit and does not protect against loss in declining markets. Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue their purchases through periods of low price levels.
 |
||
| © 2007 |
|
480-354-1040 Fax 480-354-1041 Toll Free 877-945-1040 |
|
|
||
|
Securities offered through |
||
