Financial Resource

WOW, here comes a new wagon down the street with great news for today’s credit challenged families. I know that it must be very disheartening when you have tried to keep a good credit paying history.

You sit back and wonder, “how did this happen to me”? when I always paid my bills on time, until recently. Job loss, divorce, sickness, mortgage payments off of the charts could be the cause for your making the decision to feed the kids, keep the utilities on, gas for the cars and a roof over their heads. I know, you just ignored the credit cards because you had a great history and just couldn’t pay them.

So, now they have had their “pound of flesh” by raising your rates from 7.9% to 24.9% just because you were late. The ramifications of this is that this “bump” in interest spilled over into your other accounts. Is it fair for one company to raise your interest rates, when you were never late, but because you were late with a competitor? That question in on the agenda for the Feds and I can see some relief coming down the pike. When? Who knows. Everyone knows how quick Congress is to help us, but if it affects them personally, well that’s another story.

Getting, back to the “good news”. I have not seen this published on the front page of the New York Times or any other publication, but I feel it is so important for all that I expose you to it. You see, the Federal Financial Institutional Examination Council (FFEIC) has put into place a practice or policy that allows credit card companies or any other open end debt to have the prior paying history deleted from a credit report. WHAT? You say. YES, this is true. It is called re-aging or curing a credit card history. Here is how it works.

It is NOT a law, and they do NOT have to do it. BUT, it is to their advantage and they will delete your prior paying history, IF the following conditions are met.

You MUST make at least three payments of your past due balance in order to work. .You can ONLY do this once a year or three times in five years.

You have to communicate with the creditor and ask about their re-aging policy or as some refer to it as “curing”. If, you were a good customer and you had some problems because of situations described above, in many cases they will remove those late payments.

I’ll just bet your mortgage office doesn’t know about this. Very few people know about this. But, it is an opportunity to get back on the right track. Now, if you have a habit of making late payments, you can forget this avenue. Once you screw up, it virtually becomes impossible to get this gift.

In today’s current credit mess, this is like finding that long lost golden goose you were wondering about. Read this over and over and in fact you can go onto a number of websites and research this policy. I have totally surprised many of my mortgage friends that are personally going through credit grief because they have also been affected by this market.

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