Topic: Credit Repair
YOUR GOAL Get above 700. Once you have a credit score of 700+ you will be eligible for the best interest rates available for most car loans, mortgages, etc…
Important note: Credit Repair takes time!! You should expect the process to take between 2-6 months depending on what you are trying to correct on your credit report.
Who it’s for:
I recommend credit repair to anyone who wants a higher credit score and who has a score under 700.
IMPORTANT: Your credit score determines what interest rate you will receive when applying for a new debt. It is only good for getting into more debt.
THE PROCESS
You CAN do credit repair yourself, but I do not recommend it. Much in the same way I would not recommend your represent yourself in court even though you are allowed to. Credit Repair is a tedious process that needs to be done in an efficient and organized matter with careful attention to timing. It’s best to let a professional handle it.
Not all credit repair companies are created equally. If you absolutely insist on doing it yourself click here.
Credit repair is the process of contesting items you think are inaccurate on your credit report. If you believe something to be inaccurate, you may contest what you believe to be false to the 3 different credit bureaus. You can contest balances,
The bureaus then have 30 days to ask your creditors if the information being reported is correct. If your creditors do not respond with in 30 days, confirming the accuracy of your dispute, the credit bureaus MUST remove the contested information from your credit report.
Everything has been successfully taken off a credit report at some point or another, but that doesn’t mean that you will be able to get everything you want off your credit report.
WHAT SHOULD HAPPEN
1. You join a credit repair company.
2. They will ask you to send a copy of your credit reports to them OR They will pull a copy of your credit reports for you.
3. You will discuss what you want them to try and remove, and they may ask for more details on what you believe to be inaccurate. A simple I don’t remember that can often be enough to dispute.
A personal viewpoint:
I personally would try to contest everything that is negatively affecting my credit score. If a company says I was 30 days late, I want them to prove it whether or not it actually was. I may think it was 28 days late, and they can’t prove that I KNOW the payment was late. I do not feel bad for making them prove something I am unsure of. They certainly don’t feel bad charging people enormous interest rates on their debt. If they don’t want to or can’t prove it, it will get removed and my score will go up.
4. You will normally pay a start up fee in order to activate the process, as well as a monthly fee to monitor your account.
5. The company will begin contesting your negative accounts. Within 35 days the 3 credit bureaus will send you an updated copy of your credit report. It is then your responsibility to send the updated report into the company doing your credit repair. They will check to see if anything has been removed, and if necessary continue contesting the items that did not get removed.
6. Repeat step five until all inaccurate items are removed.
PROS AND CONS
Credit Repair Pros
Higher credit score.
You will save THOUSANDS of dollars on anything you finance because you will be receiving a better interest rate.
You will know your report is accurate.
All accounts stay open. You WANT them to stay open.
You are much more attractive to lenders.
Credit Repair Cons
There are a LOT of scam artists in credit repair. It is an unregulated industry. Be very careful who you hire to fix your credit.
It takes time. There is no immediate way to permanently increase your credit score.
Discipline. You need to send them your new reports when you get them.
Similar Posts:
- Reasons for Checking an Employee’s Credit Report
- How can I get a debtor to remove a settled debt off credit report?
- Calculating Your Credit Score
- What traps are on using payday loans as a lifesaver
- Why do Americans have so much credit card debt?
Post Comment