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