The average credit score across the U.S. is 723. Approximately 58% of Americans have healthy credit scores ranging from 700 to 850. This percentage constitutes 13% having scores from 800 and above, 27% with scores 750 to 799 and 18% with scores from 700 to 749.
But what about the remaining 42% of us? Well, there are those of us who don’t even know what our credit score is and we’re afraid to find out. We’re the people that need credit repair. There are many reasons for taking action to improve your credit. The obvious reason for credit repair is to improve your credit score so you can afford big-ticket items such as a car, furniture, that vacation to Tahiti you’ve been dreaming of or the purchase of a new home. But, what happens when unexpected events occur such as the illness of a loved one, loss of a job, sudden economic downturns, such as the recent stock market crash or loss of employment? In these cases, having immediate access to funds is crucial and if you have little or no savings, where can you turn? You can turn to your available credit. But what if you have bad credit? Then what?
Most of us who need credit repair have obviously lived beyond our means. We have bit off more than we can chew. We’ve spent more than we make and now we owe money to one or more creditors. It’s nothing to be ashamed of. We don’t need to stick our head in the sand and do nothing to repair our credit problems. When we ignore the problem, hoping it will go away, all the while, our payments are being attacked by higher interest rates every month and doubling our balances, making our situation worse. It’s never too late to repair your credit and the worst thing you can do when you are in debt is to pretend it doesn’t exist.
There are several ways to begin repairing your credit. One way is to contact your creditors and negotiate a payment plan that will be mutually agreeable to both parties. If you can’t come to a settlement with your creditor then consider seeking assistance from a credit counseling agency. These agencies can help you assess your debt and help you to create a budget that will allow you to begin making payments against your debt that is more affordable to you.
However, be aware that there are many fraudulent companies out there claiming they can remove bankruptcies and other bad information from your credit report. These companies charge fees upfront and also charge hidden fees that can cause you to fall deeper into debt. Do your research. Even if the agency says they are non-profit, don’t immediately trust anyone. Get online and search for reputable credit repair services or ask your friends and family to refer you to a good source of credit counseling. Once you find a service you think is trustworthy, check them against the Better Business Bureau, the FTC (Federal Trade Commission) and your District Attorney’s office.
Also, when re-building your credit, remember that the most important factor to focus on is the ratio of your account balances to your credit limits. A good policy when utilizing credit is to use only 30% of your available credit and if you need more credit, apply for another credit card, maintaining the same rule. This way you won’t max out one card, which causes you to get in too deep. The second most important factor is making your payments on time, proving to the credit companies that you are a trustworthy borrower who can pay off their debts.
For more information concerning credit repair, visit the following websites: myfico.com and ftc.gov. They have a plethora of information on credit and will be a good starting place on your journey to credit repair. Begin today to repair your credit. Fixing your credit doesn’t happen overnight. It takes time to repair it. But, if you stay vigilant in your quest for repair, you credit report may come up smelling like roses.
By: Jill Mohler
Posts Tagged ‘Reason’
Why Do I Need Credit Repair?
December 18th, 2009Avoiding Credit Repair Scams
December 10th, 2009
Credit repair can take time, especially if you have poor credit and don’t really have the time that you need to repair it. Unfortunately, many criminals and con artists know that credit repair is much needed and often time consuming and see this as an opportunity to make dishonest money by offering people what they want but that the con artist isn’t able to offer.
Even more unfortunate is the fact that large amounts of money are scammed in this manner each year, almost always from the people who are most severely in debt and can afford it the least. If you worry that you might fall victim to one of these credit repair scams, then the information below might help to give you a better idea of what to look out for so that you don’t end up losing money that you can’t afford to lose.
The Appeal of Something for Nothing
The reason that credit repair scams are so numerous is that people love the idea of being able to get something that they want with minimal investment of either time or money on their part. Desperation can add to this, especially in the case of someone who is severely in debt and it seems as though the only option that they have left is bankruptcy. Credit repair scammers generally offer a “quick fix” to an individual’s credit, and the price usually isn’t that bad… unfortunately, the service (if any) that they provide is illegal and by the time that a consumer finds that part out the scammer is gone.
Avoiding “Instant” Solutions
One of the biggest scams of this kind is that of “instant” credit repair, in which the scammer replaces an individual’s tax ID number with a new one in order for the individual to be able to establish new lines of credit without the burden of years of bad credit causing a denial.
This can be especially troublesome for the individual, since in most cases the scammer is operating within the law to create the new tax ID number which is actually a business tax ID. When the individual uses the new number, though, they are actually breaking the law and committing fraud… something that they often don’t discover until it’s too late and they’re facing legal problems.
In order to avoid these scams, just remember that anyone who offers instant results is just trying to take your money. All credit repair takes at least some time.
Other Consequences of Scams
In addition to losing your money to credit repair scams, it’s possible to face legal charges, heavy fines, and possibly even jail time if you use falsified tax ID information or get involved in certain types of scams. If you are found to be a scam victim, the charges will often be dropped… but not always. Then, of course, there is the fact that you are still in debt and have even less money with which to repay what you owe; credit repair scams can often push people seriously in debt over the edge into bankruptcy.
Without the Scam
In order to repair your credit without getting scammed, check into consumer credit repair or other certified credit repair services. Check references and make inquiries with local police and consumer groups to make sure that they are legitimate, and follow their suggestions to help you to attain a debt-free life without the worry of credit scams. It may take longer this way, but it will be worth it in the end.
By: Paul Rogers
Credit Repair – A Complete Insight
November 6th, 2009
To get the credit report repaired you need to first get a copy of it. Annualcreditreport.com will give you access to your credit report and you get a copy of it annually.
How is the credit report prepared? Depending on the information you give to the credit report companies, your report is prepared and then lenders purchase it. Credit repair advisers come into picture if you find any problem with the report.
Lawyers are qualified and authorized to make changes in the credit reports. You cannot just give it to a person who is not authorized. If your credit report shows a credit scores which is less than 680 then your report is considered as bad credit report and it needs to be worked on by a professional.
The reason why so much of emphasis is being laid on getting the report repaired is the money lenders extract high rates of interest from a bad report. You may be surprised to know that one can save quite a lot of money by utilizing the services of professionals.
Some of the companies charge you for giving information on credit repair like where you can get the report or how to draft the letter etc. All these things can be found online free of cost. Don’t trust such sites. You should also avoid companies which promise to repair the report within 30 days.
Those of you who have lot of patience there is another option. You can repair the credit report on your own. This might take a long time and you will not be able to repair the report completely as the repair procedure given by the credit bureaus and government agencies. In the end you will need advice for the expert lawyers.
Lawyers or attorney are quite expensive and not all will be able to afford their services. Writing a letter to the concerned government department can be another option which can be considered. A plain, formal, impersonal letter should be drafted and sent. Usually you can expect a reply within 30 days of posting the letter. But if you don’t get a reply then you are not left with much choice but to opt for certified lawyers to help you.
By: Wastery Wallman
