Financial Education Services - The Six Worst Items To Appear On Your Credit Report

It's easy to make mistakes or experience hardship when it comes to paying your bills. Some mistakes are so detrimental; want to avoid them at all cost. Since future creditors and lenders use your credit report to make decisions about you, it's important to understand how each of these impact your credit file.

1. Charge-offs

Missing your payments for 6 months or more could cause your creditors to deem your account as uncollectible. When this happens, the creditors write that debt off as a loss against their income taxes. Charged-off accounts are allowed to be reported on your credit report for seven years. Just because a debt is charged off (or written off) does not mean the debt is forgiven. The money is still owed. The creditor will usually sell or assign the debt to a collection agency or a lawyer to effect collection.

Some companies continue to charge interest, but most don't. If they do decide to keep charging interest, they have to continue to report it as income. Most companies would rather just write it off and be done with it.

Having charge offs on your credit report usually results in the consumer being denied credit by other lenders. Even worse, it can also affect the interest rate that other lenders charge on current debts even if those lenders were not impacted by the charge off themselves.

If you find yourself late on your payments, you should always try to contact the lender and let them know you are having problems meeting your financial obligations. Ignoring the situation and letting it get to charge off status always makes it worse. You can usually avoid your account being charged off by at least letting them know you intend to pay and by at least making small payments as often as you can.

It's much easier to get a paid charge off removed from your credit report than it is an unpaid charge off. When you dispute the charge off with the credit bureaus, they have 30 days to verify the account with the creditor. If the account is paid, many times the creditor will just ignore the verification request. They really only report charge off so that they can damage your credit hoping that it will turn make you want to pay them off.

2. Collections

Not only will creditors charge-off your account after a period of non-payment, they may also hire a third-party debt collector to attempt to collect payment from you. Your credit report may or may not be updated to reflect a collection status. Sometimes the debt collector places an entry on your credit report or the original creditor places a note on your report indicating the account is in collection status.

3. Bankruptcy

Filing bankruptcy allows you to legally remove liability for some or all of your debts, depending on the type of bankruptcy you file. Your credit report will reflect each of the accounts you included in your bankruptcy. Even though the bankruptcy information can legally remain on your credit report for seven to 10 years, you can begin rebuilding your credit soon after your debts have been discharged.

4. Foreclosure

If you default on your mortgage loan, your lender will repossess your home and auction it off to recover the amount of the mortgage. This process is known as foreclosure. When your home is foreclosed it can severely damage your credit, limiting your ability to obtain new credit in the future. A foreclosure can remain on your credit report for seven years.

5. Tax liens

When you don't pay property taxes on your home or another piece of property, the government can seize the property and auction it off for the unpaid taxes. Even if your home is foreclosed because of a tax lien, you are still responsible for the mortgage loan. Non-payment of the mortgage will also hurt your credit. Unpaid tax liens can remain on your credit report for 15 years, while paid tax liens remain for 10 years.

6. Lawsuits or judgments

Some creditors may take you to court and sue you for a debt, if other collections fail. If the lawsuit is accurate and a judgment is entered against you, it can remain on your credit report for 7 years from the date of filing, even after you satisfy the judgment.

For information on how you can solve these issues as well as potentially remove them from your credit report please visit United Credit Education Services

Also be sure to review our complete FES Protection Plan

Don't Let Medical Bills Ruin Your Credit

Medical bills are the leading cause of bankruptcy according to many financial sources. Unfortunately, many people neglect their medical bills without realizing the impact that those unpaid bills could have on their credit score.

How Medical Bills Can Hurt Your Credit

After you receive medical services, your physician or hospital will bill you for any portion that wasn't covered by insurance. Just like any other bill, medical bills have a due date. If you don't pay by the due date, your bill becomes past due. Hospitals will only send you so many past due notices before they give your account to a third-party debt collector to resume collection efforts.

When the debt collector receives your medical bill, one of the first things it will do is report the account to one or all of the three major credit bureaus (Equifax, Experian, and TransUnion). The medical collection account is considered a serious delinquency and can remain on your credit report for up to seven years, the maximum amount of time permitted by law.

Your credit score - the number creditors and lenders often use to approve your applications for new loans and credit - is based solely on information that's in your credit report. Since having a collection account on your credit report indicates you have a seriously delinquency in your credit history, your credit score will drop when a new collection is added to your credit report. The more medical collections accounts you have, the lower your credit score will be.

Protect Your Credit from Medical Bills

One of the easiest ways to keep medical bills from impacting your credit score is to pay your bills when you receive them. If you can't afford to make payment in full, contact the hospital's billing department to make payment arrangements.

Even if you have health insurance, don't assume that your insurance company will always handle bills in a timely manner. If you receive a bill that should have been covered by insurance, contact your insurance company to find out why the bill wasn't paid. It could have been a simple oversight by hospital billing or the insurance claims department. Insurance companies often cover only a certain percentage of medical bills, so you might be responsible for some portion of medical debt after the insurance company has covered its part.

To find out whether you have unpaid medical bills out there, check your credit report.

To be doubly safe, you might contact the hospital or physician's billing department to check the status of your account, especially if you've received any medical services within the past year. Sometimes, just because the medical bills aren't on your credit report doesn't mean they don't exist. By contacting the medical provider, you'll know for sure whether you have outstanding medical bills that could end up hurting your credit.

For more information contact Mark Bustamonte at 954-707-2932 or visit

Financial Education Services (FES) and FES Protection Plan

Financial Education Services - FES Protection Plan

Protect your Credit File with Positive Credit Builder! p>

Your Credit Score is the most important number in your financial life. Your Positive Credit Builder credit analysis document will provide the necessary tools to understand the credit scoring system and how it impacts your financial health and freedom.

Protect your identity with LifeLock!

As the leader in proactive identity theft protection, LifeLock takes proven steps to help prevent thieves from destroying your credit and good name – even if they get your information.

Protect Your Loved Ones Future with FES Will and Trust Plan!

Planning for life's uncertainties brings you and your family peace of mind. But a will alone is not enough. You also need a living trust, medical power of attorney, and financial power of attorney.

Protect your finances with FES DebtZero!

SAVE THOUSANDS with the most effective, most efficient debt pay off system available. Get out of debt easier than ever with a clear precise plan that is customized for you.

What is FES DebtZero?

FES DebtZero is a web-based debt acceleration program that provides individuals with personalized direction they need to accelerate the pay off time of all their debts and mortgage. FES DebtZero guarantees that if you follow your personalized instructions you will be 100% out of debt and mortgage free in less than half the time it takes the average person, making regular payments, while saving or gaining thousands of dollars in the process.

Can anybody qualify or use FES DebtZero? Is FES DebtZero right for me?

If you have a checking account, make more money than you spend and have debt that you want to pay off quickly then FES DebtZero will work for you.

How Does FES DebtZero Work?

1. Deposit Income

Deposit your income, as you normally would, into your standard checking account. It doesn't matter if you direct deposit or hand it to a teller. FES DebtZero is a web-based program that is used as a management tool like a navigation system for your finances. Provide the secure FES DebtZero system your financial overview and the system will offer step-by-step direction so you can properly apply optimal payments toward your debt. FES DebtZero directs you on the best quickly pay off your debt that is also conducive to wealth accumulation. The less money that you have to pay on interest, the more money you'll have growing in your account.

2. Follow Prompts

The program looks at your deposited funds, expected expenses, dates they are due, and safely reserves funds for any unexpected expenses. FES DebtZero then analyzes this information and generates monthly prompts that will provide precise directions for paying off 100% of your debt, without any alteration to your existing lifestyle. In other words, you will still be able to enjoy yourself while paying down your debt!

3. Pay Expenses

Continue to use your checking account to make payments to your monthly bills, as they become due. If you currently pay your bills using online bill pay you can continue to do so. You will also use your checking account for daily budgeted spending (i.e. gas, groceries, entertainment etc). Any money that you have not spent is left in your account to accumulate and then used to pay off your debts or mortgage.

For more information contact

Mark Bustamonte Regional Sales Director Financial Education Services 954-707-2932 Direct

Financial Education Services (FES) and FES Protection Plan

VR Tech announces name change to Financial Education Services

At the first annual National Convention in Atlanta, GA in February 2010, VR Tech Marketing Group announced the name change to Financial Education Services (FES) to better identify the mission of the company and related product line.

Coral Springs, Florida (PRWEB) March 5, 2010 -- VR Tech Marketing Group, in order to better identify it mission, products and services, announced a name change to Financial Education Services (FES).

VR Tech Marketing Group, now Financial Education Services (FES) has been in successful operation for over 7 years. FES has worked with consumers since 2003 to help educate consumers about the importance of credit as well as providing resources to help consumers improve and maintain there credit rating.

Financial Education Services over the years has continued to build it's product line by adding products that enhance the credit restoration process. FES recognizes that the key to helping someone that has credit issues requires more then just deleting derogatory items from the credit report.

Some on the enhancements include the VR Tech Prepaid MasterCard as well as the UltraScore program. The prepaid MC offers an unsecured minimum line of credit that is acquired by applying a direct deposit from an employer to the consumers card. This ensures the repayment of the unsecured line as well as building good payment history.

UltraScore provides a comprehensive credit analysis for the consumer as well as an "Action Plan" to help the consumer understand all the components of there credit profile and what they need to do in order to maximize there credit in the most efficient manner.

Another major announcement that was made a the National Convention was the creation of the YFLF (Youth Financial Literacy Foundation) and the YFL (Youth Financial League) designed to help teach youth the importance of being financially literate. This program is geared toward youth ages between 8 to 18. This program will provide interactive web based teaching modules. Youth that complete the financial curriculum will be eligible for educational scholarships.

As well introduced was the launch of the FES Protection Plan. The FES Protection Plan is holistic approach to help consumers protect all areas of their finances and includes: Positive Credit Builder, Identity Theft Protection, Estate Planning, FES Debtzero.

FES Debtzero is a web based application that helps consumers to establish a clear and precise method of eliminating personal debt, secured or unsecured, in the most effective way. This tool will show the consumer how to repay there debt while creating discretionary income for savings.

Financial Education Services (FES) with it's long history of success as a company and very high valued products is positioning it self to be a major player in the revitalization of the economy by address the issue of financial illiteracy in communities all across the country.

For additional information about how you can on Financial Education Services (FES) please contact Mark Bustamonte at 954-707-2932 or visit https://www.myfinancialeducationservices.com.

About Financial Education Services (FES):

Mark Bustamonte is a Sales Director for Financial Education (FES) services and has been a member since 2003.

Contact Info

Mark Bustamonte, Sales Director Financial Education Services 954-707-2932 http://www.myfinancialeducationservices.com http://www.primefinancialcreditservices.com http://www.financialempowermentnetwork.com

What version of FICO is being used to generate my score?

Remember when Microsoft's Windows '95 was getting all the press? Since then there have been a multitude of newer and better versions of the operating system, and right now Microsoft is promoting Windows 7. FICO is nothing more than a software algorithm that crawls through the data on your credit report; much the same way as Google will crawl through web sites looking for content. The purpose of the FICO software is to try and predict your chances of defaulting on future debt obligations within the next 2 to 3 years. So how many versions of FICO are out there?

At least three that we know of. Until recently, the mortgage industry was able to use a version written back in 1998. This was only available for the data contained in a Trans Union report, but nevertheless, there were instances when the 1998 version gave you a higher Trans Union FICO score, and those 5 to 10 points were sometimes the difference in getting a loan.

Most banks using FICO are using the version created in 2004, which is commonly referred to as FICO Classic. The Fair Isaac Company is aggressively promoting the newest version of FICO which has been dubbed FICO '08.

Important Information To Check In your Credit File

Most people focus exclusively on the negative trade lines reporting on their credit file.

The following is some other important data that should be considered as well, courtesy of MSN:

Are your employer and your job title listed? If you've had the job less than two years, your previous employer and job title should be listed as well.

Is your address listed and correct? If you've been there less than two years, is your previous address listed as well?

Is your Social Security number listed and correct?

This is the way most lenders will identify you.

Is your telephone number listed and correct? Many lenders may not extend credit if they can't call you to verify information.

Does your report include all the accounts you've paid on time? Some lenders don't report regularly to credit agencies, and some report to only one or two, rather than all three.

You can ask the creditor to report the account to an agency that doesn't list it. If the creditor refuses or doesn't respond, you can send a letter to the agency with a copy of your latest statement and canceled checks to prove you've been paying on time.

Financial Empowerment Network Team and Prime Financial Credit Services

Credit and Debt Terms to Know

APR

The annual percentage rate, or APR, is the interest rate charged on the amount borrowed. It is the annual cost of borrowing money. APR makes it easier to compare different loans and credit cards, because you can easily see which loan/credit card would be cheaper. There are two different types of APRs. The nominal APR is the interest rate that's stated on a loan. The effective APR includes fees that have been added to your balance.

Balance Transfer

A balance transfer is the process of moving credit card debt from one credit card to another. Balance transfers are subject to a balance transfer fee that's a percentage (usually 3-6%) of the amount being transferred.

Billing Cycle

The billing cycle is the period of time between billings. It may start on the 1st day of the month and end on the 30th day. Or, it may go from the 15th of the month to the 15th of the next. Billing cycles are varying lengths, ranging from 25-45 days, depending on the credit card and issuer. During the billing cycle, purchases, credits, fees, and finance charges are posted to your account. At the end of the cycle you are billed for all charges and fees made during the billing cycle. Your credit card payment is 20-25 days after your billing cycle ends. The period of time is known as the grace period.

Credit Limit

A credit card limit is the maximum amount that can be borrowed on a credit card without a penalty. Exceeding your credit limit results in an "over the limit fee". Your credit card issuer might also raise your interest rate to the default rate if you go over your credit limit. The default rate is the highest rate charged by a creditor or lender, usually as a penalty for missing a payment or exceeding the credit limit. Exceeding your credit limit or even getting clost to it impacts your credit score. Your credit utilization measures the amount of your credit limit that's being used and counts 30% of your credit score. The higher your credit card balance, the lower your credit utilization and the more your credit score is hurt. It's best to keep your credit card balances within 10% to 30% of your credit limit.

Keith Dienstl is a member of the Financial Empowerment Network Team and Prime Financial Credit Services you can also visit Credit Repair Services for more information on Keith Dienstl.