Free Credit Repair Tips
Question: What can I do to rebuild my credit and get the financing needed for a car and home mortgage?
Answer: The credit repair industry is a multi-million dollar market and is filled with scams artist and companies.
Loans are tougher to come by in today’s tight financial market – poor or bad credit making getting a loan more difficult but also raises the interest you will pay over the term of the loan. Cleaning up your credit rating and raising your credit score can save hundred’s and even thousands of dollars in interest.
Your credit report is you “electronic reputation” and we strongly urge you to educate yourself and take the steps
needed to repair and clean up your credit legally. This will allow you to take advantage of lower interest loans and lower
rates on credit cards.
Debt consolidation and debt settlement may be one option to help get your finances in better standing however, do not be fooled, much of what these companies do you can do on your own. All that is required is organization and discipline.
The first step in any debt recovery and credit rating improvement begins with a plan. This plan should include paying on time, paying back overdue payments, reducing current debt and learning to manage money. This will help improve your ability to borrow money in the future if that is required or finance a car or home mortgage loan. Without a solid plan (we call it a budget) to take control of your use and need for credit financial bondage will again be right around the corner.
Two options exist for repairing credit…
- Educate and do it yourself (preferred method – you will gain much more education along the way)
- Hire a person, company or an attorney that knows the laws pertaining to credit.
Tips and Items to Look Out For:
- Know your rights when dealing with collection agencies and companies you owe money to.
- Read the Fair Credit Reporting Act for your rights
- Never make statements or threats you cannot backup or follow through on.
- Do Not Be bullied! Never let someone else set your agenda!
- Get organized with paper work and where you are in the process
- Know the fees if you hire someone or a company. make sure you can cancel at anytime.
- Always tell the true and present the facts when dealing with collection agencies and creditors.
- Always get settlements in writing.
- Never give a collection agency or creditor access to your bank account!
- Never create a “new” credit file – It is a scam and credit fraud!
Hiring a company to handle your credit mess or doing it on your own will come down to your ability and willingness to
get organized, work and follow through on each step or the process.
Hiring a company will simply “force” you to do the things you do not want to face financially. They may handle the paper work, “force” you to budget and charge you a fee to do it all but you will need to provide all the information to them.
Before hiring any credit repair firm do the work of checking them out with the Better Business Bureau and speak to some of their clients. Some of these companies change their name on a regular basis because of the scams and fraudulant practices they employee.
The key to improving your credit is getting finances organized which includes pulling your credit report, correcting any errors and paying your bills on time.
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