How Debt Consolidation and Debt Management Can Help With Credit Repair

When you find yourself getting in trouble, may people turn to debt management companies or a debt consolidation company. Sometimes these companies can help you with negotiations of your debt but sometimes they can dig you into a deeper whole than you first started in.

Do your homework before you start up with their services. Check the Better Business Bureau. Google the company and seek for reviews. Read through them. Check reviews on Yelp. You want to arm yourself with as much information as possible. Check the state’s Secretary of State to see if they are listed. How long have they been in business. I’d hate for you to start services, pay the company’s fees just for them to close down and not do anything for you.

Before you start, also check with the creditor or collection agency. See what they can do for you. Ask for options, whether for a payment plan or a settlement. Ask if you agree to payment, would they be willing to delete the entry from your credit report once it’s paid. Don’t let them tell you they can’t do that. If they do, ask them what law states that. There ISN’T one!!! So let them know that you’re aware. Also let them know by them telling you that they CAN’T do it, that you deem that to be providing misleading information. Empower yourself with a little bit of research.

But one thing I would like to stress before establishing any type of relationships is to ask what they are going to do with the funds that you pay. Too many times I see people who enter into an agreement with a company. They first pay the fees. Then they continue with their monthly payments until a large enough sum is reached before they will try to work out a settlement. During this time, there could be a lawsuit filed which is the last thing you want. I’d suggest to ask 2 questions before starting:

1 – Can you stop a lawsuit from being filed?

2 – If a suit is filed and a judgment is entered against me, can you stop execution of the judgment?

If they beat around the bush with an answer, it’s obvious that you shouldn’t work with them. More times then not the answer to both questions is no. But if they answer yes to either, ask them to elaborate in great detail. It’s for your best interest.

Credit Repair Services: Do You Really Need It?

Repairing credit can be compared to losing weight, there is no quick-fix! Just as it takes time to get rid of your fat, the same goes for the negative items on your credit report. Any attempt to repair your credit quickly is more likely to backfire, than to produce any positive result. The best thing that you can do in order to rebuild your credit is to be responsible in managing it over a period of six months at the least.

You need to be responsible in managing your credit, but what if there are errors and inaccuracies in your credit report that render it negative? The worst thing about such inaccuracies is that you are at a serious disadvantage, usually through no fault of yours. Unfortunately, a study by U.S Public Interest Research revealed that 70 percent of all credit reports contain serious errors.

Fixing these errors involves a detailed legal process which consists of sending dispute letters to creditors and credit bureaus, sending reminders, studying the documentary evidence provided by creditors and bureaus, and more. Like most people, you might not have the required time and expertise to follow through on all of these processes efficiently. This is where credit repair services can help you out. Now it’s important to understand that it will not be possible to improve your credit score in a few weeks. As previously stated, this is not possible even if the negative items in your credit report are due to error.

Time taken for Credit Repair

Creditors and credit bureaus are required by law to produce original documentation in order to prove the negative items that are present on your credit report. They cannot take more than 30-45 days to do so. However, drafting and sending dispute letters may take some time as well. Some people think that it is possible for any consumer to get his or her credit score corrected without any professional help, which is true but hardly practicable.

Anyone whose credit report contains errors can try to draft their own dispute letters and send them to the concerned parties, but it is time-consuming and it takes a lot of mental effort. Unless you are ready to take this duty as seriously as you take any other professional commitment, do not even try! Hiring a reliable provider for credit repair services, which would be a company that has more than a decade of experience helping thousands of customers with unfairly negative credit reports, can help you correct your credit score without too much fuss.

Credit report repair services are particularly useful when:

— The negative items on your credit report are due to accounting, reporting or any other error committed by creditors, credit bureaus or collection agencies. Genuine errors can be struck off from the reports smoothly when you go through the proper procedures.

— The credit repair service providers are good at identifying errors that cannot be verified. By law, if any item in the report cannot be backed up by documentary evidence, it needs to be removed. This loophole can be used by credit repair companies to improve your score.

— Some lenders are willing to negotiate with credit repair representatives of their consumers. If your lender allows it, this can help you raise your credit score.

A credit repair company is an effective alternative for you if you have a lower credit score. They will take the necessary steps at removing any inaccurate information from your credit report which will eventually improve your credit score.

Managing Your Credit Scores In Your 20s

Age brings with it wisdom especially when it comes to taking financial decisions. A 40-year-old may be aware about more of credit repair facts and myths as compared to a 20-year-old. However, there may be instances when people may be stuck with similar credit issues irrespective of their age.

To begin with, the key to improve your credit score is – a dynamic focus. You need to seek help from a proficient credit repair specialist and then prioritize certain things as you age in order to do away with the issues that come in your credit domain.

Things to Consider in Your 20s to Improve Your Credit Score:

In your 20s, there are specific things that calls for your attention, when it is about enriching your credit health.

Attend to the five Factors:

The first step to improve your credit score is to have a clear understanding of the rules. The actual status of your credit score is determined by five factors – debt utilization, payment history, new credit, credit length, and diversification. If you were unaware of the essential factors that have an impact on your credit score, you need to work on the strategies that will help you to take care of the five factors.

Repay your student loans:

As stated by The Institute for College Access and Success (TICAS), about 69 percent of the students left college with loans in 2013. The bottom line (which was $28,400) was actually a big burden for the salary of a fresher. You have a choice to stretch the loan for whatever time span you want to (years or even decades), but you also need to keep in mind the downside of the decision.

Adding on the interest will not only increase the principal amount and will also increase the life of the loan. This will increase the overall cost of the loan that you have taken. Paying off your loans at the earliest will lead to a lower credit utilization ratio, better and more opportunity to improve your credit, less stress on your budget, and last but not the least even more opportunities to save.

The final tip:

Credit score plays a vital role in every phase of your life whether you are in your early 20’s or 50’s and beyond. Analyze your credit score regularly to ensure that you maintain a positive credit and avoid any problems related to your financial plans.

Is Your Credit In The Trash? Try These Ideas For Easy Repair!

It’s not only irresponsible people who fall into deep debt. People who pay their bills on time and honor their debts, sometimes get struck with a little bit of bad luck that ultimately spirals out of control, and creditors are not forgiving of your bad luck. They want their money and they want it now. But what can you do to fix that bad credit rating? Here are a few tips that can get you started on the road to repairing your credit.

Cancel your “introductory” credit cards as your credit starts to improve. Those cards serve a very useful purpose in building your credit, but the interest rates and terms on them are usually terrible. When you have improved your score enough to qualify for a better credit card, go for it and get rid of the old ones.

An important tip to consider when working to repair your credit is the fact that correct information can never be removed from your credit report, be it good or bad. This is important to know because many companies will claim that they can remove negative marks from your account; however, they can not honestly claim this.

Consider a free credit service such as consumer credit counseling services. These non profit organizations will help you to establish a repayment plan with your creditors and can often times lower the amount that you owe and the interest that you pay. This is a better option than bankruptcy for your credit score.

Credit repair scams are a dime a dozen, so understanding what is legit and what isn’t is key in finding someone to help you with your problems. For example, if a company contacts you but doesn’t tell you about your Fair Credit Reporting Act rights, then they aren’t a trustworthy business.

On a yearly basis, review your credit report for items that could mean your identity has been stolen. If you see inquiries that you did not authorize or accounts opened that you do not recall, start taking action immediately to secure your identity and put a hold on your credit.

It is possible to add an explanation to your credit report to give additional information about the circumstances of any items that appear negative. Falling behind on a payment may have a very good reason. Adding the reason to your credit report makes it more accurate and may help you if you are applying for a loan.

An easy way to start the credit repair process is to limit yourself to one credit card. The less cards you have the easier it will be to keep track of balances, fees and payments. Write the issuer of each card you do not plan to keep and close the account. You’ll need to transfer that balance or pay it off.

You should evaluate your debt. Review your credit report and take a look at how much debt you are in and what steps you need to take to fix it. By doing this you may find out that your debt situation is not as bad as you thought it was.

Don’t fall for the credit repair companies scams, they make lofty promises that they can’t fulfill. It is a fact from the Federal Trade Commission that they have never seen a legitimate credit repair company. You will be better off saving your money and repairing your credit yourself with a little hard work.

If you are looking to sign up for a credit repair service, make sure that you are not too hasty and you look up information on the company you are dealing with. Also keep in mind that most credit repair companies that are legitimate will only ask you to pay after they solve your issues.

Find a good quality guide to use and you will be able to repair your credit on your own. These are available all over the internet and with the information that these provide and a copy of your credit report, you will likely be able to repair your credit.

If the credit repair company you’re interested in tells you they have secrets which can help them work harder for you than any other company, they’re lying. There are no secrets which can help anyone work on their credit repair any faster than anyone else. I wouldn’t trust anyone who lied to me!

Contact your creditors. If you cannot repay your debt in whole or at all you should contact them. They may be able to offer you a payment plan or set up future payments for you. You should not avoid them, they will usually work out a plan to get you caught up.

Don’t purchase any luxury items until your debts are paid off. You want to focus on paying off any debts that you have so that companies will begin to trust you again. If you spend your money on new electronics instead of on your debts, you look bad and it makes it seem like you’re irresponsible.

Remove cosigners from your accounts. Adding a cosigner is a good way to get credit, especially when you are first starting to repair your credit score – and they offer another chance to bolster your score when you remove them. Once your credit gets to a point where you can qualify without cosigners, call your financial institution and remove them from your existing accounts.

It is a bad idea to threaten credit companies that you are trying to work out a deal with. You may be angry, but only make threats if you’re able to back them up. Make sure to act in a cooperative manner when you’re dealing with the collection agencies and creditors so you can work out a deal with them.

As you’ve learned here, there are plenty of steps you can take and ways to repair your credit that will not require having your proverbial day in court. You might have to develop a silver tongue and deal with a little more stress than you’re used to, but following these steps can help you get out of debt.