Indy Credit Counselors Inc

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One, easy payment each month. Your credit cards and other unsecured debts are consolidated into one monthly payment so you don't have to juggle payments.

Free Budget & Credit Counseling: What can I expect at a credit counseling session?
In confidential sessions, our counselors at Indy Credit Counselors, Inc. (ICC) will review your current situation and work with you to determine the best possible financial strategies. ICC will perform a thorough analysis of your income, living expenses and debt to help create a plan to avoid or reduce debt. You will receive advice for developing and balancing budgets, managing money, using credit wisely and building a savings plan. Indy Credit Counselors, Inc., (ICC) will help you develop your own plan so that you can do more with what you have. During your counseling session, you and your counselor complete the following steps:

Consolidating Into One Monthly Payment: With the average American carrying 7 to 8 credit cards the average American has 7 to 8 different payments to worry about, 7 to 8 different due dates to remember and 7 to 8 stamps to buy each month. Imagine having just one payment to make each month, one due date to remember, and zero stamp(s) to buy each month. Thats the beautiful thing about working with Indy Credit Counselors, Inc. (ICC). You will just have one payment! Each time a payment is made to ICC, we then disburse the individual payments to each of the creditors on your behalf. The majority of the creditors we work with will receive their payments from us electronically. This way there is no delay in waiting on the mail or for checks to clear. Payments to Indy Credit Counselors, Inc., (ICC) made by our clients can also be done electronically. We can have the payment set up drafted directly from your checking or savings account on the day of the month, Week, Bi-Weekly and Bi-Monthly that is more convenient for you. This way you dont have to deal with mailing out payments and making sure that we receive it in time to pay your creditors. As you can see, we can simplify your bill paying process drastically!

Late Fees & Over-Limit Fees
Credit Card Late Fees Average Over $35; Over-the-Limit Fees Top $36. The average credit card late fee is now $35.20, while the average over-the-limit fees checks in at $36.10. Using data from a cross-section of major and minor card issuers, IndexCreditCards.com found that late and over-the-limit fees ranged from $0 to $39. However, most nationwide issuers charged between $29 and $39 in both categories. As a frame of reference, a $35 average late fee is roughly equivalent to the monthly finance charge youd pay if you carried a $2,100 balance at 14% interest. Over-the-limit fees are even higher, and many cardholders find them even more galling, as logic would suggest that a card would simply be rejected if it hits the limit. Instead, most card issuers allow you to go over your limit, but then charge you a fee for doing so. Many credit issuers use a tier system in assessing fees. For example, your late fee may be $15 if you have a balance of less than $100, $29 if the balance is less than $250, and $39 for balances beyond that. Indy Credit Counselors, Inc., (ICC) can help stop most late fees & over-limit fees from most creditors by enrolling into a Debt Management Plan (DMP). Enrolling into a DMP with Indy Credit Counselors, Inc., (ICC) does not require a Set Up Fee or Enrollment Fee, or a lengthy contract and there is no cancellation fee or early payoff fee penalty.

Do you see your balance go down at all after you make your monthly payment? Do you feel like you are making progress in paying off your debt? If not, then you may be suffering from high interest rates.

Get Your Credit Report In Order
ICC can help you get your credit report Free of Errors: Your credit report contains information about where you live, how you pay your bills, and whether youve been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nations consumer reporting companies. Some financial advisors and consumer advocates suggest that you review your credit report periodically. Why?

Because the information it contains affects whether you can get a loan and how much you will have to pay to borrow money.
To make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
To help guard against identity theft. Thats when someone uses your personal information like your name, your Social Security number, or your credit card number to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they dont pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

Credit Reports/Credit Scores
Indy Credit Counselors, Inc., (ICC) provides all three major credit reports with FICO II and Fico Classic and Beacon scores, Debt to Income Ratio, Credit Limits, Addresses and Phone Numbers to Creditors, Account Numbers, Inquires, Auto & Real Estate Loan Information, Employment History, Address Information and Phone Numbers to all Creditors, Length of Time Accounts have been Established, Lack of Recent Revolving Account Information, Number of Accounts with Delinquency, Serious Delinquency and Public Record or Collections Filed For, How Many Inquires made The Last 12 months, Historical Delinquencies, Account Distribution Public Records, AKA Information, Identification Information and Addresses to All Three Major Credit Bureaus. All for a nominal fee.
Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now there are sites that offer free peeks at those scores, but how helpful are they?

Back Taxes- File your back taxes ASAP. The IRS sticks by its principal of not prosecuting people who voluntarily file their old tax returns. Don't think the IRS won't find you because they will. The IRS has a slow, but efficient computerized system. Indy Credit Counselors, Inc., (ICC) can assist with IRS Payment Plans there are multiple ways of paying back taxes to the IRS. The most common method is through an installment agreement. If you cannot pay the minimum payment amounts required, you may be able to qualify for a partial payment installment agreement.
Payday Loans: What is a payday loan? A payday loan is a small loan (maximum $500-$1,000) that does not require a credit check. Payday loans have short terms and must be paid back quickly, usually within a few pay periods. Payday loans are marketed as a way to help you cover your expenses until your next paycheck. Also called check cashing, payroll advance and deferred deposit, these loans offer a fast way to access emergency money. Many payday lenders are not licensed, bonded or regulated by important consumer laws.
Payday loans can be very costly. Borrowers should use them with caution and pay the amount back as soon as possible. These loans are usually priced at a fixed dollar fee, which represents the finance charge to the borrower. Because the loans have such short terms, the cost of borrowing is very high. In return for the loan the borrower usually provides the lender with a pre-dated check or debit authorization.
What are the negatives? It is crucial that you repay a payday loan as soon as possible. Many people get into trouble with these types of loans when they are unable to quickly repay the debt. If you cant repay the loan at the end of the term, youll be charged expensive additional fees. It is very costly to be stuck in a payday loan cycle for a long time and can lead to larger financial problems. Payday loans are also much more expensive than other methods of borrowing money. In most cases the annual percentage rate (APR) on a payday loan averages about 400%, but the APR is often as high as 5,000%. A standard credit card has an APR of 12% and a standard loan APR is around 7%. If possible, it is better to use a credit card or tap into your savings in the event of an emergency. If none of these options are available let Indy Credit Counselors, Inc., (ICC) help you set up payments arrangements thats affordable for you.

Collection agencies are private for-profit organizations that collect debt either for themselves or on behalf of a third-party creditor. A debt collection is one of the worst entries on your credit report. A collection is a severely past due account that will make it difficult for you to get approved for new credit and loans. If you have a collection account on your report, its likely affecting your credit score. This is especially true for more recent collections. You can improve your credit score by getting these collection accounts deleted from your report or reported as Paid or Current. Collection agencies typically collect both secured and unsecured debt including, among other things, auto, boat, or motorcycle loans, credit cards, retail debt, medical debt, student loans, business debt, commercial and residential property debt, government debt, e.g. unpaid taxes. Additionally, collection agencies may enforce property seizure proceedings including repossession or foreclosure proceedings. Some of the largest collection agencies. Under the Fair Debt Collection Practices Act, a collection agency may report derogatory information on your credit history for up to 7 years. Collection items usually appear as "collection," "collection/charge-off", "collection/placed for attorney," "placed for collection," or "collection/settled for less." Any of these notations can lower your credit score. Indy Credit Counselors, Inc., (ICC) can assist in setting up affordable payments arrangements with your creditors on your behalf.

Debt-to-income ratio important as credit score.
By now you know your three-digit credit score is a very important number in your financial life, but did you know there's also a two-digit number that can be just as significant?
It's your debt-to-income ratio, and it can shed a light on, and help you better understand, your true financial picture. The good news is, getting this number doesn't cost you a penny, and it can be calculated in just a few minutes at your kitchen table.
It's true that nitty-gritty details can make a difference, but you can get a fairly accurate understanding of your financial picture by spending just a minute or two calculating your debt-to-income ratio. By knowing the ratio -- and how to improve it -- you can increase your chances of getting a better mortgage, a better car loan and even better credit card rates.
DTI explained: Your debt-to-income ratio is exactly what it sounds like: the amount of debt you have in the form of mortgages, car loans, student loans and credit card debt, as compared to your overall income. To calculate your overall debt-to-income ratio, sometimes known as a back-end ratio, add up all of your monthly debt obligations -- often called recurring debt -- including your mortgage (principal, interest, taxes, and insurance) and home equity loan payments, car loans, student loans, your minimum monthly payments on any credit card debt, and any other loans that you might have. Do not include expenses such as groceries, utilities and gas. Take this total and divide it by your gross monthly income from all sources.
Let's say you and your spouse together earn $83,000 per year or $6,916 per month. Your total mortgage payment is $1,350, your car loans total $365, your minimum credit card payments are $250 and your student loans add up to $300. That equals a recurring debt of $2,265 a month. Divide the $2,265 by $6,916 and you'll find your DTI is 32.75 percent.
In general, you'll want to keep that number below 36 percent -- a threshold that loan officers and credit card issuers often use as a factor when they determine how much they're willing to lend you. "If you go higher than 36 percent, you are on a slippery slope," Lenders might give you money, "but they'll give you higher interest rates, and if anything goes awry, they'll sock it to you."
So why is that number so important? It's all about proportion. "You can be making a lot of money every month, but if you've got the debt to match it, that can be a problem". "It's important not to overextend yourself." The higher your number, the riskier it is for lenders to offer you loans -- and the more they'll make you pay for them. "The stronger you are financially, the more leverage you have when negotiating interest rates or loan amounts," "So there is an advantage to keeping that ratio low." Indy Credit Counselors, Inc., (ICC) can help you improve your debt to income ratio by eliminating debt at an accelerated rate by utilizing our Debt Management Program.

So, you've decided to get your free credit report. But now that you've got it, there are an awful lot of numbers, abbreviations and terms you've never seen before. Trade lines, charge-offs, account review inquiries -- how do you read this thing?
First off, there are three major credit-reporting agencies in the United States: Experian, TransUnion and Equifax. Every 12 months, you can print a copy of your credit file from all three agencies by going to a single Web site, www.annualcreditreport.com.
"Looking at one is a useless endeavor; you need to look at all three," says Miguel L. Silva President/CEO of Indy Credit Counselors, Inc., (ICC) in Indianapolis, In. "People tend to pull one and think everything is the same on all of them. That's not normally the case. The reports will have different information because it's a voluntary system, and creditors subscribe to whichever agency they want -- if any at all.
Anatomy of a credit report: A credit report is basically divided into four sections: identifying information, credit history, public records and inquiries. Identifying information is just that -- information to identify you. Look at it closely to make sure it's accurate. It's not unusual, for there to be two or three spellings of your name or more than one Social Security number. That's usually because someone reported the information that way. Other information might include your current and previous addresses, your date of birth, telephone numbers, driver's license numbers, your employer and your spouse's name. The next section is your credit history. Sometimes, the individual accounts are called trade lines. Each account will include the name of the creditor and the account number, which may be scrambled for security purposes. You may have more than one account from a creditor. Many creditors have more than one kind of account, or if you move, they transfer your account to a new location and assign a new number. The entry will also include:
When you opened the account. The kind of credit (installment, such as a mortgage or car loan, or revolving, such as a department store credit card). Whether the account is in your name alone or with another person. Total amount of the loan, high credit limit or highest balance on the card. How much you still owe. Fixed monthly payments or minimum monthly amount. Status of the account (open, inactive, closed, paid, etc.). How well you've paid the account.
Other comments might include internal collection and charged off or default. Other reports use payment codes ranging from 1 to 9; an R1 or I1 on a report is an indication of a good payment history on a revolving or installment account.
The next section is the part you want to be absolutely blank. The public records section "is never a good story," "If you have a public record on there, you've had a problem." It doesn't list arrests and criminal activities; just financial-related data, such as bankruptcies, judgments and tax liens. Those are the monsters that will trash your credit faster than anything else.
The final section is the inquiries. That's a list of everyone who asked to see your credit report. "Any time anyone gets into the report, it'll post an inquiry," "If you call the credit bureau and ask for a copy, it will be on there. It's a very detailed entry record. It's great for the consumer."
Inquiries are divided into two sections. "Hard" inquiries are ones you initiate by filling out a credit application or taking your child to the orthodontist. "Soft" inquiries are from companies that want to send out promotional information to a pre-qualified group or current creditors who are monitoring your account. You may have heard that a large number of inquiries can have a negative impact on your credit score, but you're probably OK. "The vast majority of inquiries are ignored by the FICO scoring models for instance; the model has a buffer period that ignores inquiries within 30 days of getting a mortgage or a car loan. It also counts two or more "hard" inquiries in the same 14-day period as just one inquiry. You could have 30 in two weeks and it only counts as one. Long-time lenders say it's common for reports to have errors. Some estimate that as many as 80 percent of all credit reports have some kind of misinformation. Let Indy Credit Counselors, Inc., (ICC) help you read your credit report with you for FREE!

Credit Disputes/Updates
Order your credit reports and credit scores from Equifax, Experian, and TransUnion. Print each report and review it carefully. Highlight any inaccurate information and negative records that could be harming your credit scores. Check when the negative records are set to expire using this guide: ICC Provides Credit Reports from all three major Bureaus and assist in resolving credit disputes and updates on your credit file.
Bankruptcy filing records Bankruptcy filing records expire from your credit reports 10 years after the filing date. Based on credit bureau preferences, Chapter 13 bankruptcy filings may be removed from your report after 7 years instead. Each account marked as included in BK remains on your report for 7 years from the filing.
Charge-off records A record appears on your credit report when a creditor or lender charges-off your delinquent debt as a loss. This record remains on your credit report for 7 years.
Collection records Collection records expire 7 years after the last 180 day late payment that led to the account being sold to collections. This expiration date is the same even if the account was sold to another collection agency.
Closed accounts Closed negative accounts (with late payment or other negative records) will expire from your credit report after 7 years. Closed positive accounts (with no late payments or other negative records) can remain on your credit report longer.
Foreclosure records Property deed-in-lieu and foreclosure records will remain on your credit report for 7 years.
Inquiries Records of credit and loan applications will remain on your credit report for 1-2 years. Checking your own credit reports and scores online does not cause this kind of damaging inquiry.
Judgments Court decisions such child support, civil, and small claims judgments will remain on your credit report for 7 years after the filing date.
Late payments All late payment records remain on your credit report for 7 years. However, only late payments that go beyond 30 days will continue to have a negative impact for all seven years. Read more about the real impact of late payments.
Repossession records Vehicle and property repossession records remain on your credit report for 7 years.
Tax liens Tax lien records can remain on your credit report indefinitely if left unpaid. Once the lien is paid, the record remains on your credit report for 7 years from the paid date. This is true for city, country, state, and federal tax liens.

Employers growing reliance on credit checks when screening new hires is turning out to be bad news for millions of jobless Americans. Losing a job can often mean trouble paying bills for many unemployed people. And the damage done to their credit history increasingly can become a barrier to finding another job, touching off a vicious downward spiral. Read more

So, youve filed bankruptcy and maybe a few months or even years have passed. You have not even begun to rebuild because you have no idea where to start. The few loans you did try to get were quickly denied. The biggest problem may not be your bankruptcy itself but the data still on your credit reports months and year later. You see, when a person files for bankruptcy, all debts that were included must be listed accurately as "Included in BK" if they are not, they still appear to be in collections! The potential lender you just applied with see bankruptcy and collection on your credit report. The lender will then assume you have filed and are still running up unpaid debts. You may not think this is important but it is very important. Part of the rebuilding process is to get your credit absolutely free of errors and then begin to rebuild. Let Indy Credit Counselors, Inc., (ICC) show you how to recover from a Bankruptcy.

The first step in managing your credit is to clear your credit reports of errors. Check that your credit reports from TransUnion, Equifax and Experian have accurately recorded your pre-bankruptcy debts as "Included in BK." Under the Fair Credit Reporting Act, you have the right to dispute inaccuracies.
After clearing out any errors in your credit reports it is best to keep a regular eye on your standing and use your credit conservatively. Keep your employment stable, be cautious with spending and pay all your bills on time.
You may want to apply for a secured credit card that can be used in moderation and paid off each month. Secured credit cards use your savings account as collateral for the credit limit and are easier to be approved for than a standard credit card.
As early as 1-2 years after bankruptcy you may be able to receive a home loan. The Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) have specific guidelines for accepting borrowers who have filed for bankruptcy. For example, the FHA will insure mortgages to individuals who have filed Chapter 7 liquidation bankruptcy two years after the discharge if "the borrower has reestablished good credit (or has chosen not to incur new credit obligations), and has demonstrated an ability to manage financial affairs."
You may want to make contact with a U.S. Department of Housing and Urban Development (HUD) approved housing counselor or local support program for advice and assistance with purchasing a home. Unfair lenders can sometimes target people recovering from bankruptcy so be sure to research your loan options, know your rights and read the small print.
After 7 years, the accounts that were marked as "included in BK" should be removed from your credit reports. The bankruptcy record itself will be removed after 7-10 years depending on the chapter that you filed. If your records are not removed by the credit reporting agencies automatically, you can send a letter of dispute to have the records taken off your report.

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