Sometimes you may not be aware that your credit ratings are in bad shape till you have been denied a loan, a mortgage or have to pay high interest rates on your outstanding credit card bills or loans. It is only when you realize that you need credit repair that you will explore avenues of doing so. You may need to repair your credit because bad credit can show up and stay on your report for seven years or even 10 years if you have filed for bankruptcy.
Given the fact that the economy is in a bad shape, you may find it difficult to make payments or may even be neck deep in debt. In such a situation, credit repair charges even greater importance because with high credit scores you can be eligible for loans at lower interest rates, enabling you to save thousands of dollars in outgoings.
Do you need lawyers for credit repair?
If you are in poor financial shape you may well consider going to specialists in credit repair, but the cost of their services may put you off. You can spend a lot of money on lawyers or organizations that promise to repair your credit. Unfortunately there are many scam sites and firms that do not deliver on their promises. If you do find a good lawyer or legal firm, you may be able to improve your credit score, but the role of a lawyer is actually limited.
The lawyer can go through your credit report and be able to zero in on inaccurate information, rejected information or negative information and then work on removing the inaccuracies from your report by writing to the agencies. Credit repair lawyers can also negotiate with creditors and credit reporting agencies to reduce the amount you owe or the interest and this will go a long way in improving your credit score.
However no lawyer or credit repair firm can 'clean' your credit report or remove any accurate information – if anyone promises to do so, they are promoting something illegal.
Can you undertake credit repair on your own?
You can increase your credit scores, but it may take time. Along the steps youought to take are to request your free credit report annually and go through it so that you are one step ahead. If you notice any inaccuracies or wrong information, you can write to the credit agency to rectify the mistakes.
You can also stay on top of your credit card debt and make payments regularly and on time to avoid reducing your credit scores. If you consistently make your credit card payments, your score will gradually increase.
If you have finance or debt problems, you may be able to consolidate the debt that will probably help in making bill payments easier. Using credit cards knowingly and avoiding credit card debt, which results in huge interest payments also improves your credit scores.
It is easier to repair bad credit ratings at an early stage than when the situation gets out of hand and you are actually refused credit for any reason. When you are young, fit and employed or employed, you may well be able to repair your credit on your own. However, if you are in a financial mess and you need credit repair urgently, you may be better off seeking professional help from a lawyer or credit repair firm.