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Good
credit is key to economic success. You may not give too much
thought to your credit report, but good credit lets you do a
lot of things that most people take for granted: get a credit
card, rental a car, obtain a loan, or even get an apartment.
Missed payments to a creditor, or defaulting on a loan altogether,
creates black marks that are recorded on your credit report
when your creditor reports them to a credit bureau. Too many
missed payments or defaulted loans will leave you with no option
but to start the credit repair process, otherwise, your applications
for credit cards or other loans will be turned down consistently
until you do.
A quick search in the classified
ads or on the internet for credit repair will give you tons
of offers from credit repair companies offering a quick fix
to your credit problems. Most of these companies have aggressive
marketing strategies that promise to fix your credit report
fast for a nominal fee. Be very cautious with these companies
and deal with them at your own risk –many are not only
scams, but also in most cases you can fix your own credit more
effectively by doing it yourself.
Remember: there is nothing
a credit repair company can do for you that you can't do for
yourself. Even though credit repair companies might imply otherwise,
they can’t erase poor marks on your credit rating and
they have no influence over the credit bureau. Most likely,
the credit repair company will probably tell you to obtain a
copy your current credit report and to challenge any negative
items on it. You can do this yourself without actually paying
someone to tell you to do it.
Sometimes, credit repair companies
may even recommend that you perform activities that aren’t
even legal to “fix” your credit. They might encourage
you to begin working on a "new" credit rating by changing
your banking information and address. Not only is this procedure
illegal, it is usually ineffective. You are better off going
through the credit repair process on your own. An online search
will yield detailed sites with step-by-step instructions. Again,
beware the source. Your best bet is going through a government-affiliate
site or one that is put together by a trusted organization.
The best approach to credit repair is to first
obtain a copy your credit report from the credit bureau. Examine
the report closely, line by line, and make sure to challenge
any errors on the report, in writing, to the agency that reported
it. Challenge only items that are genuine. If your report is
free of errors, you will need to repair your credit in the traditional
fashion, usually involving obtaining a secured credit card that
you use regularly, making regular payments on the balance. This
will slowly improve your credit rating.
Most importantly, be patient and make smart
budgeting decisions. Credit repair is not a quick process, and
you will find that you are able to pay off your creditors given
enough time. By making payments regularly and not defaulting
on any loans, your credit score will eventually prove that you
are eligible for credit. Although this method of credit repair
is not a fast process, it is truly effective. By doing your
own credit repair, you will be far more successful than if you
were to employ a credit repair company.
This
website contains free information on do-it-yourself credit repair.
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