Work Done By Credit Repair Agencies: Repair Credit

snerfuStarred Page By snerfu, 17th Jun 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/2xe0scn5/
Posted in Wikinut>Money>Loans

Credit repair is done by credit repair companies. When you choose a company to repair your credit, you must be careful to choose those companies that have enough experience. Find out in this article, how to go about this work.

Credit report and repair

Repairing credit is not simple. However, credit repair agencies work on points available and work to improve your credit score. Every credit card report contains cent percent accurate information. However, some of this information changes with time, some expires with time. For example, information regarding the bankruptcy of any person will remain on record for 10 years. A credit repair agency cannot alter information according to their wishes. In other words, they cannot create a new credit individual identity.

Popular questions regarding credit repair

Here are some popular questions that arise in the minds of people who wish to repair their credit scores.

a) How can credit repair companies work?
Credit repair companies make use of Fair Credit Reporting Act and repair any bad credit.

b) Will credit service organizations provide credit?
These credit service organization will not provide credit. They act on behalf of those people with bad credit scores to obtain a loan. They help extend credit with lenders. If you engage the services of any credit service organization, you can cancel it within five days without having to pay anything.

c) How long after bankruptcy, will it take to repair credit?
Work on repair of credit will begin immediately and most severe impact on credit lessens after two years. In the meantime, you have to take steps to improve the credit score. The bankruptcies will remain on your credit score for 7 years in case of chapter 13 bankruptcies and 10 years in case of chapter 7 bankruptcies.

d) What step should one take?
One could obtain a secured credit card. FICO model scores are affective in the range of 350—850 with following weightages.
a. 35% will depend on payment history
b. 30% Balance—limit ratios
c. 15% Time for which you have kept credit
d. 10% type –revolving or installment
e. 10% assessment model
It is better to have at least 2 installment accounts and around 4 or 5 revolving accounts. Only apply for new credit if you know that they will approve you.

e) What is the waiting period after bankruptcy that one has to wait before they can re-apply for credit?
Try to clean the credit reports first. When you are discharged wait for three months. Check for inaccuracies and get them corrected.

f) Can you apply for a credit card during bankruptcy?
Anyone can apply for a credit card during bankruptcy. However, since the bankruptcy will show up on your credit score, they will deny you any new loans. This will affect your credit score even more.

g) What action can you take immediately?
You must bill reminders immediately. This falls under payment history, which accounts for 35% weightage in your credit score. To ensure timely payment you should set up automatic payment as soon as next installment is due.

h) Should I cancel my credit card?
When you stop using your credit card, you get your debts under control. However, cancelling your credit card is not a good idea. Instead, take steps to pay off the debt by taking a loan from some friend or family member. Also, make it a point never to cancel your oldest credit card. When you cancel it, your credit score will appear relatively younger and this will affect your credit score.

Find out about the company

When you choosing credit repair companies, you should be careful to ensure that they do not demand any up front payments. Check with history of company to know how long they have been operating. Finally, read the customer reports and ensure that they are capable of delivering what they promise.

Credits for this page

All photographs in this page are taken from Public Domain of Pixabay and Picdrome.

I thank all my followers as also the page moderator for the support they give.
I thank my friends who follow my blog. Write for Wikinut and earn — begin today.

You can read more articles like this at Best articles on the web, Reviews and Product Description and My Hubpages

Tags

Credit, Credit Repair, Credit Repair Companies, Credit Score, Credit Service Organization

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.

Share this page

moderator Steve Kinsman moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Fern Mc Costigan
17th Jun 2014 (#)

Very interesting post!

Reply to this comment

author avatar snerfu
18th Jun 2014 (#)

Thanks Fern, good you like it

Reply to this comment

author avatar Phyl Campbell
18th Jun 2014 (#)

It's not the same as credit repair, but when I used a credit counseling agency it really helped get APRs down so we could pay off the debt.
This is a good article about credit repair.

Reply to this comment

author avatar snerfu
18th Jun 2014 (#)

Thanks Phyl I will try and write that up too.

Reply to this comment

Add a comment
Username
Can't login?
Password