If you’ve been nursing a poor credit history and find yourself unable to get financial respite from legitimate creditors, then, more likely, companies that offer to repair your credit will be like lights at the end of dark tunnels.
Sure, credit repair companies and the assistance programs they offer are legitimate, but it is advised that you don’t easily get fooled after just one sitting. While credit repair schemes promise to get you out of your financial woes, they can also turn into your greatest nightmares if you fail to protect yourself and read the fine print.
More often than not credit repair schemes will present themselves as quick and easy ways to clear your tainted credit record of red information for a certain fee. They look mighty attractive at first but, as with any money making operation, surely they won’t tell you all the tricks of the trade and how they are to benefit from you.
The fact of the matter is, bad credit can only be healed by time. Credit repair companies will assure you that they can call up your creditors and clean up your murky credit history for you, but this is really not the case.
Some credit repair agencies will tell you that your credit has already been cleared up and send you a note to prove it, but, the reality is, they are merely trying to process your credit clearing application and do not really know if your creditor will approve it or not.
Before you know it, your bad credit information has magically reappeared on your records and there isn’t anything you can do about it, except, well, drag yourself into a credit repair scam again and fool yourself that you’ve been cleaned up.
Bad credit records are bad credit records. No matter how hard you try to seek instant reprieve from the red marks on your documents, they will not go away unless they have been erroneously placed there. And no credit repair agency can make miracles happen for you. If you truly had a tainted financial past, you must bear with it and let it pass over time.
Credit bureaus report negative information as far back as seven years and as far back as ten years for bankruptcy related cases. This means your history for the past seven to ten years will turn up in your records whether you like it or not and cannot, and never, be altered by any credit repair tactic.
But if you are sure that mistakes have been made on your records and you’re truly free of negative data, then by all means, seek help from credit repair companies. Or, to avoid having to pay their charges, you can repair your credit yourself.
You simply notify the credit bureau of the errors and give a detailed account of the mistakes your found on your records. The more accurate you are, the better. After which, the bureau will conduct an investigation into the account in question, free of charge, and correct them or discard false information that is unverifiable.
To help strengthen your case, you can even write a short note, about a hundred words, explaining the negative information on your report. It could take a while, but, hey, it sure beats having to pay credit repair agencies to do it.
By: Khieng Chho
Posts Tagged ‘Creditors’
Protect Yourself From Credit Repair Scams
December 16th, 2009How Credit Repair Works
December 8th, 2009
With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can’t help but get more and more behind and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track.
Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.
What Is It?
Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice. When used properly, they can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit. If an offer claims that they can instantly grant you new credit, then it’s likely not only bogus but can also get you into legal trouble if you accept it.
Common Types
As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments. Budgeting assistance services are also available to help you get control of your spending and personal finances.
Avoiding Scams
Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they’re really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges. If an offer sounds too good to be true, then it likely is.
Repairing Your Own Credit
Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself. Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.
By: Paul Rogers
Poor Credit Car Finance – Important Details to Consider
November 7th, 2009
Having bad credit is no reason to despair when it comes to needing a fair loan or financing for a new car. Bad credit happens, and most of the time it is due to unforeseeable events in our life that take us by surprise. Thankfully, creditors and lenders understand this and they also understand your need for a car so there are several good lenders who are willing to work with those with less than perfect credit. In order to find yourself the best car loan you must first begin seeking out quotes from as many lenders as possible. This will give you an idea of what banks are offering and help you narrow down your search in both loans and the kind of car you can afford.
Borrowers that are already signed on for a car loan can still negotiate with lenders to get a more favourable loan interest rate. Signing off on a car loan is not the end of a deal, and as you improve your credit score you can work to improve your current loans as well.
New repayment plans can be negotiated that take into consideration your changed income or financial circumstances in addition to your changed credit score. This is important because you may be able to get an improved deal midway through a finance contract if your credit history has improved. This is something that many people are unaware of and their ignorance is effectively leaving money on the table.
Home owners with bad credit, who find themselves in need of a car, can also work with lenders to gain a beneficial loan that they can manage easily. Unsecured loans are the best decision in this type of situation, but just to be sure everyone considering the option should go over their credit report and other options before signing. Reviewing your credit report regularly is a smart thing for home owners and future car buyers to do because it can help you save money on your future loans, or point out things that you need to work on as well.
When looking to finance a car loan, there are other factors in your history that creditors will be looking at in addition to your credit scores. Items like employment history and income help lenders determine how much of a risk you are and can make or break a loan decision. For this reason, it is important to keep good documentation of all incidences that show up on your credit report. Unexpected expenses or illness in your life can make your credit history appear to be very bad, when in truth it might just be an isolated incident that led to you being considered a risky borrower. With more information on your credit history, lenders are able to get a better picture of you and your spending and re-payment habits.
Informing yourself before you head into any lender is one of the most important steps you should take and need to think about too. First, it prepares you by giving you an idea of the loan and interest amount you will need. Resources on lender’s websites like loan calculators are often free to help you determine these figures. Rebates and variable APR rates should be given equal attention as monthly payments, because both of these can cause huge changes in the amount you expect to spend.
Most importantly, research well what car you want to purchase and how much you can afford. Then you will be well armed to go quote shopping and ultimately decide on a car loan.
By: Calissa Hatton