There has always been much controversy around the concept of credit repair and credit repair agencies.
Is it legal? Is it possible? Is it affordable? Is it sustainable? These are some of the questions that may pop up in your mind whenever you think about repairing bad credit.
How is done? Credit agencies have drawn a lot of flake in the past due to a crop of fraudulent companies who have managed to instill doubt and fear in the minds of the common person.
At the same time, it is encouraging to know that for every fraudulent company there are at least three that are legitimate and service oriented.
Always use the services of those agencies that are affiliated with reputed regulatory bodies such as the ECRA (Ethical Credit Repair Association) or BBB (Better Business Bureau).
These agencies often use the following legal steps to increase your credit score: 1.
Resolve outstanding issues There are two steps involved here.
The first step is to check your credit report from all the three credit bureaus for accuracy.
The inaccuracies once identified need to be systematically weeded out through correspondence with the respective credit bureaus.
This will take anywhere from 2-6 months on average, sometimes longer.
The second step is to close bad credit accounts due to late or non-payment.
The key here is to close the book on all bad or negative aspects in your report.
This means re-negotiating terms with creditors and settling these in the best possible manner.
Your creditors should give you an absolution for the credit they had in your name.
2.
Commence measures for repairing credit The good news here is that no matter what, your credit score can be improved.
You need to apply concerted efforts and strategic measures to do so, but the bottom line is that credit repair is possible.
The repair can be accelerated by encouraging a positive financial image reflected through better credit worthiness to credit availed ratio, savings, debt to income ratio and so on.
Just as tactics is important to win a battle in war, so is the strategy to build your financial credibility.
Most agencies will be able to guide you through the right moves to accelerate the increase of your credit score.
3.
Rebuilding of credit history Repairing and rebuilding credit are two different aspects, though at the first glance they look similar.
Repairing actually leads to rebuilding a positive credit report; therefore, this would be the logical fall out of credit repair.
This involves counseling and putting into place a correct financial management plan for you to follow in the future.
There are certain parameters that qualify you for excellent credit.
A good credit repair agency will assist you in rebuilding your credit history based on such parameters.
Is it legal? Is it possible? Is it affordable? Is it sustainable? These are some of the questions that may pop up in your mind whenever you think about repairing bad credit.
How is done? Credit agencies have drawn a lot of flake in the past due to a crop of fraudulent companies who have managed to instill doubt and fear in the minds of the common person.
At the same time, it is encouraging to know that for every fraudulent company there are at least three that are legitimate and service oriented.
Always use the services of those agencies that are affiliated with reputed regulatory bodies such as the ECRA (Ethical Credit Repair Association) or BBB (Better Business Bureau).
These agencies often use the following legal steps to increase your credit score: 1.
Resolve outstanding issues There are two steps involved here.
The first step is to check your credit report from all the three credit bureaus for accuracy.
The inaccuracies once identified need to be systematically weeded out through correspondence with the respective credit bureaus.
This will take anywhere from 2-6 months on average, sometimes longer.
The second step is to close bad credit accounts due to late or non-payment.
The key here is to close the book on all bad or negative aspects in your report.
This means re-negotiating terms with creditors and settling these in the best possible manner.
Your creditors should give you an absolution for the credit they had in your name.
2.
Commence measures for repairing credit The good news here is that no matter what, your credit score can be improved.
You need to apply concerted efforts and strategic measures to do so, but the bottom line is that credit repair is possible.
The repair can be accelerated by encouraging a positive financial image reflected through better credit worthiness to credit availed ratio, savings, debt to income ratio and so on.
Just as tactics is important to win a battle in war, so is the strategy to build your financial credibility.
Most agencies will be able to guide you through the right moves to accelerate the increase of your credit score.
3.
Rebuilding of credit history Repairing and rebuilding credit are two different aspects, though at the first glance they look similar.
Repairing actually leads to rebuilding a positive credit report; therefore, this would be the logical fall out of credit repair.
This involves counseling and putting into place a correct financial management plan for you to follow in the future.
There are certain parameters that qualify you for excellent credit.
A good credit repair agency will assist you in rebuilding your credit history based on such parameters.
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