Wednesday, May 6, 2009

What is charges?

What is Charges?

A charge is when a consumer is very late on a payment that the credit company claims the debt as a loss. Usually these accounts come from credit card accounts, medical bills, utility bills, loans, grocery bills, gasoline bills or any type of account that is not paid on time. Many consumers believe that they no longer have to pay a debt once it is charges, however this is not true. Even if the lenders receive their payments after the charge appears on your credit it can stay on your report and affect your credit.

How does a charge affect in your credit report or credit score?

A charge will stay on your credit report for seven years and does not look favorable for you by any means. To a typical lender, if you have one or more charge on your credit report there is a good chance they consider you to be an unacceptable risk and not approve you for any type of credit. How can you avoid charge?

This is why it is so important to check your credit report to gain knowledge about what is contained in the report. The smartest thing you can do is to avail fast day loan to pay your balance before it goes to a late payment.

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