Almost everyone has some kind of debt. Most people have credit cards, student loans, a mortgage, or car payments. Your timeliness in paying off these loans make up your credit history, something that people usually don’t think about until it’s too late and you are declined on an application. Your credit history is an important tool in maintaining your financial stability, and can have a big impact on your way of life. Once your credit rating is listed as “poor,” you will have a hard time renting a car, putting a deposit on a service, or getting a credit card. If you have bad credit, it is important to begin working toward credit repair right away, before you find that the damage gets worse.
Many people find the thought of improving their credit history to be daunting, and might understandably be tempted by a company online that offers to quickly fix their bad credit for a price. Though there are situations where one of these credit repair companies may prove useful, in most situations they are unnecessary.
Credit repair companies aren’t a realistic solution for most people, because they provide you with a service that you are able to do perfectly well on your own. These credit repair companies will have you obtain a copy of your current credit report from a credit-reporting agency. They will then launch an attack on each of the negative items on your report, in writing. They don’t do this with the idea that you have many mistakes on your credit report, but in the attempt to take advantage of the credit reporting agency’s legal obligation to respond to all investigation requests within 30 days. In effect, the credit repair company is gambling. If the credit reporting agency fails to respond within the specified time period (difficult to do if you multiple items are challenged at once) they are required to remove the challenged item (or items) from your credit report.
This may seem clever, but it is important to remember that the credit reporting agency can put the items they removed from your credit report right back on once have the correct documentation. You could end up paying the credit repair company to perform a “service” that was undone a month or two later.
Aside from this strategy that some credit repair companies use, many more companies like this regularly scam their customers. Remember that these companies, by law, must render all promised services before they accept your payment. They must also clearly outline every fee and service that they intend to provide. If you do choose to enlist the services of a credit repair company, read over all paperwork and fine print to avoid possible scams.
For most people, using the services of a credit repair company isn’t necessary. Make sure that if you do decide to use one, that you check them out completely and that they are actually able to perform a service that you can't, or don't have the inclination to do on your own.
About the Author:
For more free credit repair information like this article, please visit: Free-Credit-Repair-Advice.com
Read more articles by: Ryan Cote
This article is distributed by: www.iSnare.com
Some Steps Towards Credit Repair
Credit is an essential tool to most people's lives. A good
credit rating allows for many things that we take for granted:
having a credit card, being able to rent property, qualifying
for in-store financing etc. . . If you fail to make...
Be Vigilant When Repairing Your Bad Credit
The word to be when trying to restore credit is "vigilant,"
because this can be a daunting task, but repairing credit can be
accomplished by the average consumer. If a copy of the credit
report has been procured, then it is time to go to work,...
Credit Repair, Bankruptcy & Bad Credit Loans
Bad credit is a widespread problem in the UK. The number of
people filing for bankruptcy is increasing. A bad credit history
includes arrears, default, county court judgments, bankruptcy,
etc. A bad credit history haunts the borrower for a very...
A Guide to Do-It-Yourself Credit Repair
Having poor or bad credit can be a major burden, not only in your financial life but in other aspects of your life at large as well. Not only does it bring major problems into the act of getting a loan or credit card, but you may also be denied...
Bad Credit Credit Report Repair - Why Do It Yourself?
A credit report is a powerful piece of paper. Lenders look at it closely when deciding whether or not to give you a loan. Insurance companies can use it to determine your rates or whether they will cover you at all. Employers can access it and use...