How long does negative items stay on my credit report?

Accurate negative information generally can be reported for seven years, but there are exceptions:

  • Bankruptcy information can be reported for 10 years;
  • Information reported because of an application for a job with a salary of more than $20,000 has no time limitation;
  • Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;
  • Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and
  • Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.
  • Tax liens stay on 7 years from the date PAID.

Some other rules to keep in mind:

The Statute of Limitations has nothing to do with the length of time something can stay on your credit report, they are two TOTALLY separate things. Again, there is absolutely NO relationship

The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account. Some collection agencies update their reporting status on you to keep the account active with the bureaus to extend the time the account appears on your report. Very crafty and underhanded of them, because most often the account is updated and the period of time the account is active appears to be extended. This is illegal! Challenge this! If you do, bureaus will correctly remove it 7 years from origination. Period. In other words, paying a collection will not keep it on your credit report for a longer period of time.

How much does your company charge to startup a new business?

Regulations for each state is different, therefore prices will vary depending on the state you wish to setup your business in. You may contact one of our representatives for pricing in your state.

What is credit repair or credit restoration?

Your credit report is updated by your creditors and maintained by the three individual credit reporting agencies; Experian, Equifax, and TransUnion. It is the responsibility of the credit repair companies to make sure that these credit reporting agencies were fair when they filled out that your credit report. As always even though some people choose to handle the entire process themselves it’s best to have a professional credit advisor handle the credit restoration process for you. The Fair Credit Reporting Act (FCRA) gives you the right to contact the credit reporting agencies directly to dispute items on your credit report. You can dispute any and all items that are misleading, inaccurate, untimely, biased, incomplete or unverifiable. Any item that cannot be verified on your credit report must be deleted.

Does paying off debt repair my credit?

No!  Unfortunately, the credit reporting system just doesn’t work that way. When you pay your debt, the negative credit listing doesn’t disappear. There is little difference between a paid negative item on your credit report, or an unpaid one. If you can afford to pay off your debts, then it is recommended that you do so.

How long does it take to repair my credit?

Every client’s situation is unique therefore the timeframe required to repair your credit will vary. The majority of our clients will see results within the first 45-90 days.  Once you have signed up for credit repair we process your information within a few days. Keep in mind that once the information is submitted we must wait on a response back from the third parties involved (e.g. Equifax, Transunion, Experian etc.), therefore we cannot predict how and when they will respond.  Individual results will vary.

Can you help me get money for my business if I have no financials?

Yes, we have over several funding programs that require no financials to qualify.

Can you help me get money for a startup business?

Yes, we have funding programs especially designed for new startup businesses and franchises. If you have good personal credit you can secure $10,000 to $150,000 for your new business. If you have collateral such as 401ks, equipment, stocks, and more, even with challenged credit we can still help you.

How much does your company charge to startup a new business?

Regulations for each state is different, therefore prices will vary depending on the state you wish to setup your business in. You may contact one of our representatives for pricing in your state.

What is a corporation?

A corporation (also known as a C corporation) is a separate legal entity created by its owners with the ability to separate personal assets from business liability. A corporation has many of the same rights and abilities that people do. For example, a corporation can buy and sell goods, buy and lease cars / property and apply for loans. A corporation can also own other corporations and can even file for bankruptcy. For years smart business owners have been incorporating to protect themselves and their families from business debts and / or lawsuits.

Why should I Incorporate?

  1. Asset Protection: By incorporating you have the ability to separate yourself from your business’ liability. If your business goes under or is sued, your own personal assets such as your home or car aren’t subject to repossession. Other entities such as sole proprietorships do not offer that kind of protection. If you are doing business as a sole proprietorship, and your business goes under or you are sued, every one of your family’s personal assets would be subject to repossession to pay any lawsuit or remaining business debt.
  2. Tax Deductions: By incorporating you can also take advantage of numerous tax deductions that other legal entities cannot exploit; such as fringe benefits. Everybody needs health insurance, life insurance and a retirement plan. By incorporating, you are able to provide such plans for your employees. This is a tax deduction for you and your employees don’t have to pay tax on their fringe benefits. You also have the added bonus of deciding to pay tax on the corporate level then on your personal level, (also known as double taxation) or letting the profits and/or losses of your business flow through to be taxed as your own personal income with an S corporation.
  3. Privacy: Many business owners want to maintain their privacy for many reasons. However one of the main reasons a business owner may want to maintain his/her privacy is to avoid being the victim of a lawsuit. Often times people will try to obtain a company’s net worth prior to filing a lawsuit. By incorporating you have the ability to shield your personal information from the public’s eye. Certain states have excellent privacy laws keeping their owner’s identities off public record.
  4. Raising Capital: Every business needs money. Since a corporation is a separate legal entity it has its own credit profile separate from your own. This means once business credit is established it can obtain loans for equipment, cars, property, or anything the business needs. Corporate credit also builds much faster than personal credit making it easier to secure. A corporation also has the ability to raise money by selling stocks, bonds, and other securities.
  5. Credibility: Corporations often enjoy doing business with greater ease then a sole proprietorship. Many banks and suppliers prefer a corporate account over a personal account and are more eager to do business with you.

What is an S Corporation?

An S corporation has all the great liability benefits of a C corporation, yet it has a few differences when it comes to taxation. When a business is operated using a C corporation, the owners often run into a problem with “double taxation”. This occurs when the owner pays his/her own personal income taxes along with his corporation’s income taxes. An S corporation eliminates this problem. It allows the business profits and/or losses to “flow through” to the owner’s personal income tax forms. The S corporation does not pay any income tax, therefore leaving the owners to only have to pay their own personal income taxes.

What is an LLC?

An LLC (Limited Liability Company) provides the personal asset protection of a corporation without all the corporate formalities. An LLC is much easier to create than a corporation and is also much easier to operate and maintain. The fact that there are very few formalities and far less paperwork, makes an LLC one of the top choices for the small business owner.

What is a registered agent?

A registered agent is the person who receives all mail and legal notices on behalf of the corporation. Many business owners wish to be their corporation’s registered agent

Can I use a P.O. Box as my physical address?

No, you cannot. You must use a physical address which can be a business address or residence.

Copyright 2015 Milestone Business Solutions