Credit Repair Agencies: Is There Hope in This Area?

snerfuStarred Page By snerfu, 18th Jun 2014 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Loans

Working alone towards repairing bad credit scores is tough. Will it do any good if one employs a credit repair agency? Actually, every situation is different and one must read up to know more.

Checking the best option

When you are in financial trouble, you can do two things. One is to ask advice from a credit counseling agency. The next thing is to take action on your own through a credit repair company. When should you approach a counseling agency and when should you undertake the credit repair work on your own? If you have doubts about your credit report or need clarification on some aspect of your report then you must approach a credit counseling agent.

Beware of risks

You cannot on your individual effort clear or correct any items presented in your credit report. One of these three credit reporting agencies – Experian, Equifax or TransUnion will conduct regular checks on your credit report standing. If they feel the need to make a change then they will do it.

About the second method of doing things your own way – remember there are cheats and fraud companies who will gladly take your money and disclaim any responsibility, citing some clause in the contract that you signed.

Operation of credit repair companies

Credit repair specialists are those who specialize in finding ways of repairing your bad credit report. Though options are limited, if you choose the right company, you can get through with minimum losses. Find out what the prognosis is before you begin your campaign.

Operating principle of credit repair companies

Getting into trouble – low credit score
Of the many reasons why anyone will have bad or low scores on their credit report, majority fall into one of these two classes.
a) Bankruptcy
b) Do not pay short term loans in time

Getting out of trouble – fixing the low score
This operates in just the opposite way as the one above. You pay off small loans and bills immediately. If you require money, approach a friend to lend you money for interest. Use it to pay of small bills. This will help boost your credit scores. Next, if you have applied for bankruptcy, then you will have to wait for two years for the positive effect of credit repair to show.

Things that will work

Since the scope of operation of credit repair agents is limited, one must prepare for things you can achieve. Here are some of those things listed.
a) Errors that need correction
b) Errors that need substantiation
c) Willing lenders
Many credit repair companies will give you money back guarantee if they are not able to repair your credit score on your credit report. In fact, you should only choose those companies who are willing to provide this guarantee. Things that they can work on right away are errors that need correction and errors without substantiation. If they have mentioned your name incorrectly or your date of birth is mentioned wrong then you can correct them. Next, if there are errors mentioned without proof, you can change them. Lastly, if you ask your lenders for some time to pay back your loans, and if that lender agrees then you can ask him or her to abstain from mentioning the loan.

Relax after your credit is fixed

You have made the effort and you have now patched thing up, you will have better credit standing at your local merchant shop, you need to pay lesser amount for your monthly loan installment and you can apply for a new loan too. This way you do not have to pay any money unnecessarily.

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Credit Repair, Credit Report, Loan, Score

Meet the author

author avatar snerfu
Bachelor, Christian, 53, settled in Madurai, India, like to watch football and tennis on TV. I also have occasional walks but try to read the Bible daily. For amusement, I read the newspaper.

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author avatar snerfu
19th Jun 2014 (#)

Thank you so much Mr Kinsman for moderating my page.

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author avatar Retired
19th Jun 2014 (#)

This was an informative article. I had not known about credit repair companies before.

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author avatar snerfu
19th Jun 2014 (#)

Okay. anyway nice to have you around carolford.

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