COVID-19 (Coronavirus) and Your Credit Score

COVID-19 (Coronavirus) and Your Credit Score Consumers who are experiencing a financial hardship may be wondering how potentially late or reduced payments might impact their credit scores.        The CARES Act Credit Reporting Provision The CARES Act amends the Fair Credit Reporting Act (FCRA). This new FCRA amendment provides protections only if a creditor approves a consumer for an “accommodation.”  An accommodation is an agreement for a forbearance, a payment deferral, a partial payment agreement, a loan modification, or “any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 (COVID-19) pandemic 

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Bankruptcy Increases Your Credit Score

The Federal Reserve Bank of Philadelphia published a study in 2014 where they analyzed 600,000 bankruptcy filers and examined their credit access after consumer bankruptcy between 2002 to 2013. The Conclusion: The average credit score in 2010 went up more than 80 points — from 538 to 620. Contrary to the bankruptcy myths out there, bankruptcy improves your credit score. But Why? A credit score is composed of 35% payment history; 30% outstanding debt ; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the 30% of outstanding debt and that is why your credit score increases 

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Bankruptcy and Credit: The Real Impact of Bankruptcy on Your Credit Score

Many people considering bankruptcy hesitate for fear of damaging their credit scores. The real impact of bankruptcy on your credit score may surprise you. Credits scores often improve an average of 80 points immediately after bankruptcy. But why? A credit score is composed of 35% payment history; 30% amounts owed; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the “30% amounts owed” category by virtue of your discharge order in bankruptcy. That’s the simple answer as to why your credit score increases. If you do file for bankruptcy, it’s not the end of your financial 

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Boost your Credit Score after Bankruptcy

Credit reports should be checked 30 to 60 days after bankruptcy to ensure that creditors are reporting accurately. Creditors frequently fail to report an updated status for discharged accounts. All debts discharged in bankruptcy should show a zero balance (“$0.00”).     Boost Your Credit Score – Remove Negative Tradelines The following negative descriptions should not appear in your credit report after bankruptcy: Charge-off reported after the discharge in bankruptcy is inaccurate. Delinquency reported after the discharge in bankruptcy is inaccurate. Any balance other than “$0.00” reported after the discharge in bankruptcy is inaccurate. Any late notation reported after the 

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