Get ready to use these free credit repair tips to rebuild your credit and get financing!
If you have used one of your available debt relief options, then credit repair is probably a priority. The first step to recovering from financial difficulties is to begin improving your credit report.
Delinquent payments, bad credit, and foreclosures usually mean high interest rates and difficulty getting loans or mortgages. Lenders will consider you a high risk and will be hesitant to work with you. Changing your spending habits and cleaning up your credit report will help you get better loan rates and save you thousands of dollars in interest.
But, where do you begin? Whether you have filed bankruptcy or used debt counseling or settlement, the journey to credit recovery will take time, but it is not as difficult as you may think.
Basically, you have two options: you can go the do-it-yourself route, or you can hire a credit repair company. But, be careful! Credit repair is a million dollar business and there are a lot of scams out there!
Perhaps you don't want to tackle the problem alone, and you would rather call on the experience and expertise of those who understand credit laws. But, a little research is important before you throw away your hard-earned money on empty promises.
There is no company that can wipe your credit report clean and remove all negative marks, no matter how much money you pay them. The Federal Trade Commission warns consumers about falling prey to such promises saying that, "only time, a deliberate effort, and a plan to repay your bills will improve your credit as it's detailed in your credit report."
Debt Settlement and Debt Consolidation can help you get your finances under control so you can get onto repairing your credit faster.
You should avoid companies that:
If it sounds too good to be true, it probably is! There are some good credit repair services available, so do your homework and choose wisely.
Whether you hire help or do-it-yourself, there are a few credit repair tips and suggestions to keep in mind.
I had a check book, and I wrote a lot of checks. Then I moved out of the state.
This was about ten years ago, and I figured out that this was a pretty good way of doing things, as each time I moved, it took a while for the banks and stores to find me.
After I'd lived in six different states though, it started to be hard to get accounts or live in any place that wasn't a total dive. I wrote to a bank anonymously, and they told me I'd have to pay everything back, and they let me talk to this guy who arranged that I could pay a little bit every week.
It was hard, because it seemed like a lot to pay now for a little result in the future. But there were ants in the kitchen and termites in the walls, so I figured I was paying a little every week to get away from the vermin.
It worked, and a while ago I got a checking account, a real one, and my credit is good enough to get a credit card and make a deposit on an apartment, a real one with no rats!
"You want to replace the most current information on the credit report with positive credit activity, signs that you're paying your bills on time," says Craig Watts. Even after a bankruptcy, you can take out a small loan or line of credit and begin rebuilding your credit by making regular payments.
Repairing your credit is certainly something that you can do yourself, but it requires a lot of time, work, and organization. Correcting just a single error on your credit report can take several hours when you consider obtaining copies of your report, writing a dispute letter, and communicating with creditors. There are advantages to hiring professionals who are familiar with the Fair Credit Reporting Act and understand credit law to do the legwork for you.
A reputable credit repair firm will:
Keep in mind, though, even if you do choose to work with a good firm, the future of your credit score will still depend on you making smart choices and avoiding the pitfalls that got you into debt in the first place. See what Tina did (please note, results will be different for each individual due to the actual companies on your credit report):
A year ago I started with Lexington Law to help remove past credit issues from my reports.
The sign up process was easy. I am completely satisfied ... almost immediately things began to fall off my credit report.
Lexington law has given me very thorough details of every aspect of my case, and how they were improving my credit. I had constant reminders of all three reporting agencies.
Since March last year my score has boosted beyond 100 points and it is still improving!. They gave me excellent hope that my credit was on its way to cleaning up. To this day they still give me updates and continue to do an excellent job helping me maintain and clean up my credit.
Lexington Law Firm is a real law firm that offers real legal assistance in repairing your credit, with unlimited telephone and email support at no extra charge. There are no hidden fees for their services and you can cancel at anytime.
Then look at this written guide on how to repair your credit and follow the tips outlined. You need the one book that doesn't fool around or put you on the edge of risk with your credit, Hidden Credit Repair Secrets: That can fix your credit in 30 days (Volume 1) offers tips, and easy instructions you can follow to repair your credit yourself.
Also for DIY credit repair, you need updated copies of your current credit report. If you haven't obtained your free annual credit report that covers all 3 major reporting bureaus yet, then get them here absolutely free: Access your free credit report from the big three major credit bureaus, TransUnion, Experian and Equifax, all on one easy to read report. Start here.