Hard-hit Texas cities see increase in credit scores

April 26, 2013

Hard-hit Texas cities see increase in credit scores

Article provided by The Ford Law Firm, PLLC
Visit us at http://www.forddebtlaw.com

It is no secret that the American economy has experienced great hardship over the past few years. As people experienced foreclosure and unemployment, credit scores plummeted. But things have started to look up. Although the numbers may be improving as a whole, many Collin County residents may still be feeling the impact of slow economy.

Credit scores on the rise

According to Experian, a credit-reporting agency, there has been an upturn in credit scores. Experian's annual State of Credit report shows that eight Midwest cities have made the top 10 list of areas with the best credit scores. Tyler, Wichita Falls and Dallas, Texas are on the top 10 list of cities with the most improved average credit scores. The national average credit score in the U.S. is 750 out of 990, one point higher than last year.

Better financial situations have contributed to this recent increase in credit scores; however, there is a long way to go. Though some people are paying credit card debt and are not at risk of foreclosure on their homes, this does not mean they will be going out to spend more money.

How credit scores and reports affect consumers

Credit scores are important, but consumers should pay special attention to credit reports. Employers, banks, insurance companies and other entities look at credit reports to decide whether to hire, loan money, or what premiums consumers will pay. It is important for the consumer to review their report for inaccuracies. One's credit score is a reflection of their report. Reports can change, scores cannot.

Insurance companies will use credit-based insurance scores from reports to determine the likelihood that someone will file a claim by seeing how responsible they are with their money. Employers look at credit reports to make sure consumers are who they say they are and to review their spending habits. The latter has been limited to reports where the information is required for that specific job.

Disputing a credit report

To dispute a credit report, a credit bureau will allow the consumer to attach a 100-word statement to explain any inaccuracies. This statement will accompany any copy of the credit report. There is no monetary cost to dispute a report. The Fair Credit Reporting Act states that the credit bureau and reporting agency have to correct any inaccurate information. It is also important to check for inaccuracies to look out for identify theft.

Information appears on a credit report for at least seven years and bankruptcy information can stay up to 10 years. To increase credit scores, consumers should pay bills on time, keep low amounts in accounts, and check reports to make sure they are accurate. If you are experiencing problems with debt, contact a Texas bankruptcy attorney to discuss debt relief options. A Plano bankruptcy attorney can help residents with several debt relief options, including debt management, mortgage or foreclosure issues, debt consolidation and even Chapter 7 and Chapter 13 bankruptcies. State and federal laws apply to several of these options and it's important for consumers and homeowners to have experienced legal help to take advantage of the available remedies.