Over 70 million Americans suffer from bad credit, and for the majority of them the cause of bad credit is a loss of job or medical expenses, rather than reckless and frivolous spending. If you have bad credit, please don't feel ashamed. Bad things happen to good people. If you find yourself faced with a difficult financial situation, there is help out there. In this article we will discuss credit repair, how it works and how you might benefit from credit repair services. When you have finished reading you will have the information you need to begin to restore your credit and get your life back on track.
How does Credit Repair Work?
There are two parts to credit repair:
The first step is to order your credit report from each credit bureau (Transunion, Experian and Equifax). Then go through the reports and note any inaccurate, misleading or unverifiable information. For each item, you can write a letter to the credit agency asking to have them verify the information, and if it cannot be verified in a timely fashion (they have 30 days by law), to remove it. Be sure to carefully examine all the details of each listing for accuracy, such as the payment history, credit limit, current balance, high balance, etc.
The second step is to change your credit profile. What this means is that you need to begin paying your bills on time, improve your available balance ratio by paying down your debt, and avoid opening new accounts or applying for new credit. By changing the way you use your credit you will see substantial improvements in your credit score over time.
Why Use Credit Repair Services?
A credit repair service can help in a number of ways. First, they are experts who know the system inside and out. They can speed up the process of disputing the information on your report, keep track of which items have been disputed and when the 30 days is up. If they hit any snags in the process, which are common, they know the most effective ways to resolve them as quickly as possible. They can also help you with educational resources and some even offer identity theft protection insurance. If you are serious about improving your credit but are concerned about the time requirements of credit repair, you should contact a professional credit repair service.
Credit repair can be done on your own with a bit of research, hard work, and organization. The Fair Credit Reporting Act allows you to dispute any information on your credit report that you feel may be incorrect or misleading. Take advantage of that and make sure you review your credit reports right away. Enlist the help of credit repair services if you find the task overwhelming or if you simply don't have the time to spend sending dispute letters and tracking their progress. Once you have disputed the information, make sure to change your borrowing patterns to further improve your credit. With the information in this article you should be able to begin the process of repairing your credit today.