Credit - How to Develop a Plan, Part 3
Paying retail for something on sale is just dumb.
Paying a bill-especially in full-without having any bad credit removed in exchange is like paying retail for something on sale.
In addition to getting derogatory credit removed, you can always request that creditors remove inquiries as well, but don't get hung up on this.
Remember to look at the whole picture.
The important thing is the bad mark; everything else is secondary.
Inquiries will only stay on your report for two years and affect a score very little-even less over a short time.
Don't get greedy in all things, since you could lose your credibility and the whole thing will blow up in your face.
After you make a deal with the creditor, you can always go back later and attempt to get the bureau to remove the inquiry.
Think about your options and your methods while using a methodical approach.
And remember: don't get greedy.
Many banks offer credit cards under a business name but have the name of an employee or officer on the card.
There are two types of business credit: recourse and nonrecourse.
Recourse means that the signer is personally liable for the credit, and nonrecourse means that only the company is liable.
Be aware that most business credit cards are recourse, which means that if a business goes under, the bank can come and collect from anyone who signed the credit card agreement.
Oddly though, few banks will report business credit card late payments to the signer's personal credit report, with the exception of American Express.
However, bear in mind that if an account is purchased by an aggressive creditor who's in the business of buying bad notes at pennies on the dollar (in the hopes of turning a profit by collecting debts that others failed to collect) or turned over to a collection agency, that creditor can surely report the derogatory credit.
This is another area where timing is critical.
Either work out arrangements with the creditor before things go too far or file personal bankruptcy before the account ends up on your personal credit report.
If you file bankruptcy, the account can't be sold, and collection efforts must cease.
If it's not on your personal report the day you file, then it likely won't ever make it to the report-one less account to be repaired after the bankruptcy is discharged.
(Business debts that a consumer is liable for can be included in personal bankruptcy.
)
Paying a bill-especially in full-without having any bad credit removed in exchange is like paying retail for something on sale.
In addition to getting derogatory credit removed, you can always request that creditors remove inquiries as well, but don't get hung up on this.
Remember to look at the whole picture.
The important thing is the bad mark; everything else is secondary.
Inquiries will only stay on your report for two years and affect a score very little-even less over a short time.
Don't get greedy in all things, since you could lose your credibility and the whole thing will blow up in your face.
After you make a deal with the creditor, you can always go back later and attempt to get the bureau to remove the inquiry.
Think about your options and your methods while using a methodical approach.
And remember: don't get greedy.
Many banks offer credit cards under a business name but have the name of an employee or officer on the card.
There are two types of business credit: recourse and nonrecourse.
Recourse means that the signer is personally liable for the credit, and nonrecourse means that only the company is liable.
Be aware that most business credit cards are recourse, which means that if a business goes under, the bank can come and collect from anyone who signed the credit card agreement.
Oddly though, few banks will report business credit card late payments to the signer's personal credit report, with the exception of American Express.
However, bear in mind that if an account is purchased by an aggressive creditor who's in the business of buying bad notes at pennies on the dollar (in the hopes of turning a profit by collecting debts that others failed to collect) or turned over to a collection agency, that creditor can surely report the derogatory credit.
This is another area where timing is critical.
Either work out arrangements with the creditor before things go too far or file personal bankruptcy before the account ends up on your personal credit report.
If you file bankruptcy, the account can't be sold, and collection efforts must cease.
If it's not on your personal report the day you file, then it likely won't ever make it to the report-one less account to be repaired after the bankruptcy is discharged.
(Business debts that a consumer is liable for can be included in personal bankruptcy.
)
Source...