Credit Repair

Author: Ryann Cairns

As more and more consumers carry more and more debt, it is not surprising that people sometimes find themselves falling behind and unable to make their various payments on time.

It is not difficult to ruin your credit by simply missing a few payments. As credit becomes more and more important, the credit repair industry has come along to help out consumers whose debt has gotten out of control and who are in need of repairing their credit report.

There are various methods for repairing credit, and there are both good and bad operators in all facets of the credit repair industry. When seeking credit repair services, it is important to deal only with a reputable operator.

A good credit repair agency will offer credit counseling in addition to the credit repair services. Credit counseling is a vital part of the whole credit repair process, as this type of counseling helps consumers from falling back into debt and destroying their credit all over again.

A good place to start with credit repair is to get a copy of your credit report. There is a good chance that your credit report will contain at least one error. A recent survey by a consumer rights organization showed that up to half of all credit reports reviewed did contain an error. If you do find an error on your credit report, report it to the credit reporting agency immediately and ask that it be removed. Be sure to follow up and make sure that the error has been removed.

Another trick used by both credit repair agencies and consumers themselves is to challenge every negative item on the credit report. The credit reporting agency is then required by law to contact each of your creditors and ask for verification of the negative event.

While most creditors will respond in a timely manner, some will not and the negative item will then be removed. This tactic is used by many credit repair firms to remove legitimate negative items from their clients’ credit reports.

It does take time to clean up a damaged credit report, but the time and effort you put forth will pay dividends the next time you need a loan. Your credit score is the single most important factor in determining what your interest rate will be when you take a loan, and it is important to keep your credit rating as clean as possible.

 

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