Can Your Traffic Tickets Actually Affect Your Credit? Yes!

As we discussed yesterday, traffic tickets can be costly and time consuming. But can your traffic tickets actually have an impact on your credit score? Surprisingly, according to the CEO of one credit restoration corporation, the answer to that question is yes.

When it comes to credit scores, most people believe a lowered score is most commonly caused by late payments and/or a default on loans. What people may not know is that the government can and will turn your unpaid traffic tickets over to a collection agency. Once your unpaid bill is in the hands of collections, these agencies can now report your delinquent account to the credit bureaus in an effort to get you to pay up, thus negatively impacting your credit score and possibly your financial future.

Don't let unpaid traffic tickets affect your financial wellbeing! The first and most important step is to respond to your tickets within the allotted timeframe. Whether you decide to fight the ticket or simply plead guilty and take the fine, it is very important that you respond to the ticket so you can avoid several negative consequences, such as paying late fees and/or a forfeiture of your chance for a plea bargain. The second step you can take to ensure that the process goes as smoothly as possible is to hire a traffic attorney. An attorney will ensure that the process of dealing with your ticket is done correctly, thereby eliminating the pesky possibly of your unpaid ticket getting sent to collections!

If you or a loved one have tickets and would like to speak with an attorney, feel free to contact this office at (718) 317-5007.

What Business Owners Need to Know About Hiring Employees and Background Checks

One of the most difficult facets of running a business as a small business owner is finding and keeping the ideal employees. One aspect of this is the background check. Background checks are often necessary to ensure that potential employees are honest, stable and/or have the necessary prerequisites for the job. Although employers have the right to freely require a background check for employees in New York and New Jersey, there are some regulations that small business owners should be aware of.

According to the new federal guidelines, employers are no longer legally permitted to issue a blanket "no" if the applicant in question has a criminal record. Instead, employers must determine if the record will have any effect on the applicant's suitability to the job.

The other important set of regulations to keep in mind when hiring is the Fair Credit Reporting Act. The FCRA delineates the rights consumers have to protect their credit and other personal information. The FCRA clearly states that businesses must have a "permissible purpose" in order to pull credit information while hiring. This information is important because there has been a recent uptick in lawsuits pertaining to potential FCRA violations. If you are a small business owner and are unsure whether or not you have legal permission to request a credit report, you should consult an attorney with experience in labor issues. Again, you should have a clear reason for requesting a credit report before you do so. This reason must be pertinent to the job in question.

Remember, any violations of the federal guidelines will result in monetary penalties for your growing business. The avoidance of fines and lawsuits could make the difference in the success or failure of your business.

If you have any questions or concerns about the hiring process, feel free to contact my office at (718) 313 - 7563.


- Kevin P. McKernan

Mortgage Modification Can Affect Your Credit

Mortgage modification has recently become a popular option for homeowners who are having difficulty meeting their financial responsibilities. Mortgage modification can help financially strapped families avoid foreclosure and remain in their homes. However, it is important to know that mortgage modifications can also have an effect on your credit.

When you apply for and subsequently accept a mortgage modification from your lender, that modification is reported to the three credit bureaus. The report should indicate that you, the mortgage holder, are participating in a program that qualifies you to send in partial payments on your mortgage. This is translated negatively on the your credit report, leading to a decreased score. 

The good news is, the hit on your score will most likely be small. The U.S. Treasury Department recently reported that it can range from 30-100 points. For a family facing foreclosure, which is guaranteed to create an even larger hit to the credit score, it is probably worth it to take the smaller decrease and move forward with mortgage modification. Fortunately, credit bureaus are now developing a new way to report some mortgage modifications in a way that will not negatively affect your credit. Still, it is important to be aware of all the financial implications of any mortgage modification. Possible unforeseen effects, such as decreased credit, are why it is so crucial to consult an attorney before making major financial decisions. Your attorney will guide you through the process and help you make the right decision for your family.

- Kevin McKernan

Tips on How to Increase Your Credit Score

Having a good credit score is very important. Those with good credit scores are able to obtain more credit at lower rates so that they can easily finance a home, car, and other major purchases. Those with low scores often have trouble obtaining credit and may find it harder to qualify for loans, rent apartments, and even get hired for certain jobs. So what steps can you take to increase your credit score?

The first thing you should do is request a free copy of your credit report. If you don't accurately know your credit score, you won't know what you're working with and what you can do to correct it. Fortunately, due to the Fair Credit Reporting Act, all three credit reporting companies (Equifax, Experian and TransUnion) are required to provide you with a free copy of your credit report once a year. You can obtain your free copy by clicking here. You will have to pay extra to obtain your actual credit score, however, the report will include valuable information such as your existing lines of credit and their standing, a list of people who have requested your credit report (such as employers), records such as bankruptcies, foreclosures, judgments and other overdue debt to collection agencies.