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Termyn8or -> RE: Free Credit Reports (11/14/2007 11:30:15 PM)
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Let me tell you all something. They charge you to chack someone else's credit, but not your own for a very good reason.
Any credit contract conme under the law "Option to accelerate at will". I forgot the exact code number but it is in the UCC. What that means is by law, if you get in arrears with any creditor they can all charge you default rate, and even foreclose on your house. Even if all other payments are made. Go into default on one and that is enough to give the creditors the legal right to set you back really badly.
Now anything on that report can cause trouble. For example we went from probably 90K a year to about 30K. We are still never late, but let's say the trips to FL are over for now.
Now here is the thing, they all want to give credit, there is something in the mail at least every week. But if you have to give them any information, which you do, they have updated information.
Reporting this information incorrectly can be deemed fraud under the law, so you have to tell them that you only make a third of what you used to make. If you have a high debt load they can declare you a bad risk based on that.
Under option to accelerate, they do not have to prove a thing, and you never have to miss a payment or even be late for them to invoke this. And all loans, not just credit cards are like this. Even your house mortgage. Since 1991 it has been law, and all contracts must follow suit.
So if you have retired, semi retired or lost a good job and taken a shit job since the last time you gave them any information, think first. It could wreck your world real fast.
Think if you reported that you are now retired and your income is now alot less. Let's say you have the plasma TV and who knows whayt else, the jakuzzi, the like I said who knows. Let's say you pay about 300 a month for this, on low interest credit cards, figuring it will be paid off in a few years.
Well you get your next couple of credit card statements and the interest has skyrocketed. Then you get a notice from your mortgage company that they want all their money now. You might get thirty days to remit the full balance owed on your house.
That is why once you get a house paid off it is important to keep it that way. They can't take it. If you pay your taxes, and have a paid off house, no amount of credit card debt can cost you that. That's why they always want to offer you a cheap refi to pay off the unsecured debts. This is secured, those are not.
Once you die, your property eventually has to go through probate, that is usually when they get their money if you die in debt. Any property is divided up among the creditors and the heirs get what is left. But then the heirs do not have to probate you for a long time. You see, they can't get loans or sell the property without clear title. But they could wait twenty years, and if so, in today's world the creditors could be out of business by then. Probably will be.
So they are not giving you anything for nothing, they are trading it for updated information on you. Keeps you what they call "collectable".
So be careful out there.
T
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