| If you do a search on the term credit repair in Google, | | | | make you a new credit file, give you a new identity, or |
| the first website that comes up in the natural listings is | | | | asks you to apply for a new social security number is |
| the Federal Trade Commission. And the first thing they | | | | not doing you any favor and can land you in jail. |
| discuss is that people should really do their own credit | | | | The good news is that you can improve your credit |
| repair work. | | | | score, and in most cases sooner than you think. And all |
| The reason why? Because of all the scam artists out | | | | you have to do to start is learn a little bit about the |
| there that profess to be an expert on credit repair and | | | | credit system and how it works. Making the decision to |
| take advantage of many unsuspecting consumers. | | | | start is the first step. |
| And they use every trick in the book to misrepresent | | | | In order to get an accurate appraisal of your current |
| the services they provide. The worst part of it (other | | | | credit score, you have the right to request a free |
| than losing your hard earned money) is that they can | | | | credit report from each of the three credit bureaus |
| actually do more damage to your credit score. | | | | (Equifax, Experian, and TransUnion) each year. You |
| There are a lot of very good and honest organizations | | | | can find out how by going to or call 1-877-322-8228 |
| that can help you repair your credit score. Such as | | | | and ask for information. |
| local civic organizations, churches, and legitimate | | | | The next thing to do is take an accurate look at what |
| non-profit agencies that will guide you through the | | | | you owe, current status of payments, and what |
| maze. Our credit system has a lot of zigs and zags | | | | income you have to work with. Once you have a |
| and it can be confusing to someone not familiar with | | | | good picture of the current debts, make a realistic |
| the terms and laws that govern the industry. | | | | monthly budget. Getting the facts straight help you |
| And it does require some diligent effort on the | | | | come up with a good plan. |
| consumer's part. And these days there are way too | | | | The Federal Trade Commission website above has |
| many companies that grant credit just to make a sale | | | | very easy to understand instructions on how to |
| and ignore the fact that the consumer may be soon | | | | address incorrect information, how to contact the |
| overwhelmed by the debt. So it's a lot easier to get | | | | credit bureaus, and what can be challenged on your |
| into trouble than get out. | | | | credit report. Take you time and read over the |
| Why is good credit so important? Because your credit | | | | material. |
| score (and other considerations) will determine the | | | | You may well have incorrect information on your credit |
| interest rate you are charged for any loans. It can | | | | report that can be removed. You can also contact |
| mean the difference in 3+ interest points (on a new | | | | creditors to work out a viable payment plan and |
| car the good credit rate is around 8% so if you have a | | | | arrangements to get you back in good standing. Most |
| low score that could mean up to 12%). | | | | companies are more than willing to work with you. |
| Insurance companies and employers are even starting | | | | One word of caution though, if you are dealing with a |
| to use credit score to determine rates and job offers. | | | | collection agency, be careful. Most collection |
| If you have a low score even car insurance can cost | | | | companies work on a percentage basis, and if you |
| more. And you may not get that great job offer either. | | | | don't keep an open eye on them they can take |
| Credit repair companies that make unrealistic claims, | | | | advantage of you. To get the real scoop on what |
| ones that are too good to be true, often are just taking | | | | they can and can not do go to this website of the |
| advantage of the general lack of knowledge of most | | | | Federal Trade Commission: |
| consumers. It got so bad a few years ago that | | | | Depending on the individual situation, most consumers |
| congress passed an updated bill to help control the | | | | can improve upon their credit score in as short as |
| madness. Not that I'm in favor of too much | | | | 30-60 days. I've seen people get back in the high 600s |
| government but in this case they did help the | | | | or low 700s in 12-15 months which is very good. Since |
| consumer. | | | | your credit score can dictate the interest rate on any |
| Anyone who gives you a 100% guarantee to eliminate | | | | large purchase, I would wait until I have a good score |
| bad credit, remove a bankruptcy, liens, and judgements | | | | (it can mean 1000's of dollars over the period of the |
| are not being honest. Any company that offers to | | | | loan or purchase agreement). |