It seems like more and more credit restoration services are popping up by the minute. You can spot the advertisements for them online, on television and on the radio almost everyday. While I believe the awareness of credit repair and the help available to consumers is a good thing, it can also be very confusing on who to turn to.
When choosing a credit restoration service, one should always research the company’s reputation. Many of the new services that are popping up mean well, but they are not as advanced as some of the credit restoration services that have been around for awhile. I would recommend sticking with a service that has been around for at least a couple years. The more you can find out about them, the better.
Do-it-yourself credit repair is another wise way to mend your credit history and can be a little less expensive. I say “can be” because if you are able to get the same results as a credit restoration service, you are obviously going to save yourself some money. However, if you are not able to get the same or better results as a credit repair service, it may end up costing you hundreds and even thousands of dollars in the long run. I’m not saying that to scare you, but you should take caution when trying to attempt repairing your credit on your own.
Most websites are eager to tell you that credit restoration should be done individually by the consumer. I agree that it should be as well, but encouraging consumers to just jump right in to it without warning them of the horrible consequences that could happen is just very bad advice. The way I look at it is this: Either way you are going to spend time and/or money if you have bad credit, either by paying higher interest rates, spending the time to learn credit repair, or paying for a credit repair service to fix it for you. It’s your choice, but let it be known that sometimes when you try to skimp on things this important it can end up biting you in the end.
By: Chane Steiner
Posts Tagged ‘Television’
Credit Restoration Tips
April 9th, 2010The Credit Repair Myth
March 22nd, 2010
You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. So called “credit repair” companies have the same powers over your credit report as you do. The simple fact is that you cannot just remove a legitimate debt from your credit report, period. You have to pay the debt or settle with the debt collector for an agreed amount. There are ways, however, to remove debts that are not legitimate. You do not need anyone to assist you to accomplish these tasks.
If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.
After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score.
By: J. Junior
Your Credit Repair Questions Answered
November 18th, 2009
You would be hard pressed to turn on the television, or visit a news website, without hearing about how you can repair your credit. In today’s troubling financial times there are many people who are having trouble maintaining their credit score. They find themselves falling farther behind in payments and before long there is significant damage that can no longer be ignored.
Credit repair is vital in order to regain a credit score that is high enough that lenders will allow you to borrow money for a car, a new business or even a home. It is important to know how credit repair works. This article may not answer all of your financial needs when it comes to credit repair but it can answer some.
What is credit repair?
Everyone has a credit score. It can be high or it can be low. Most individuals start building their credit when they turn eighteen. If you do not practice money management you can ruin your credit score quickly. That is where credit repair services come in. These services or companies will work with you to reduce your overall debt and will often consolidate your outstanding debts into one, low monthly payment.
Their job is to slowly build your credit up again until it is an acceptable level. Your job is to make the payments on time and not continue taking out new lines of credit. It may be hard to do at first but it is certainly worth it in the end when you are able to buy a home or car of your own without a cosigner.
Is it true that some credit repair companies can completely clean up my credit score and make it perfect?
There are many false credit repair agencies that are operating in today’s market. They deliberately prey on those not knowledgeable about how credit laws work. Some promise that with a certain amount of money they can completely erase your bad credit and give you a great score. These are definitely scams. Some companies claim they can clear your credit score within a few weeks.
This is not feasible unless you have an extremely low amount of debt and the payments have already been arranged. A real credit repair company will explain to you all of your debts and will work out arrangements with your creditors. This takes time and it is definitely going to take money. You did not get yourself into credit troubles overnight and it will not take overnight to get rid of them.
How long does it take you to use a credit repair service?
The amount of time required to use a credit repair service is based entirely on individual problems. Some people may have a mountain of past due accounts whereas others may only have a few small ones. The length of time it takes you all depends on how your creditors react and if there are settlements that can be reached. It will also depend on how much money you can pay back. Do not expect this to be a short time though. It takes time to pay back all of your delinquent accounts and begin building a better credit rating.
How do I know when to use a credit repair service and when to declare bankruptcy?
Making the decision between a credit repair service and bankruptcy is a long, hard thought process. You have to analyze all of your debts and then decide if you can pay them back without endangering your home, car or job.
The best advice anyone can give you is to speak to a credit counselor or a bankruptcy attorney. He or she can review your debt and your income and give you possible solutions. Most people honestly want to repay their debts but are just not able to make the payments.
By: Mike Selvon
