Find answers to common questions about Credit Repair.

Q. What are charge-offs?

A. Charge-offs are very common and there are three different types. Unpaid, paid and obsolete. Paid and unpaid charge-offs that are 3 years or older are most commonly removed with a dispute request to the credit bureau because of age. Paid and unpaid charge-offs that are less than 3 years old are usually more difficult to get removed unless the credit bureau violates procedures. Either case, the credit bureaus must remove them if they're 7 years or older from the date of last activity.

Q. Can a collector force me to pay?

A. Once a creditor seeks a judgment against you they can collect in one of several ways: garnishment of wages, liens on property, attachment of bank accounts, or seizure of property. Most often, creditors will not attempt these methods of recovery simply because they are too expensive. Most collectors will not incur the costs to chase a "dime with a dollar."

Q. Should I get written confirmation when settling debts?

A. Definitely. Whenever you settle or pay off a disputed debt, always get a written agreement from the creditor or collection agency before you send payment. It is not unusual for collection agents to lie about settlement terms in order to get their money, then demand the remainder of the debt once the payment has been collected.

Q. Do joint credit cards help build good credit?

A. When another person adds you to a credit card as an authorized user, the credit card company places the account on your credit report as well. Often, the account will carry a note indicating that you are an authorized user rather than the primary cardholder. Even so, this serves to substantially improve your credit history. On the other hand, the account will not typically show up with the entire account history, but will show only from the time you were added as an authorized user.

Q. Will I be notified before a debt is reported?

A. In most states, a creditor does not have to inform you before they report a negative listing on your credit report.

Q. Am I responsible for my (ex)spouse's debts?

A. That varies from state to state. Some states are "community property" states where any debt held by one spouse is considered a debt of the other spouse or ex-spouse. The latter only applies if the debt was incurred while still legally married. Check with your attorney to determine whether or not your state falls into this category.