Experiencing poor credit scores is inevitable in the business world! Mistakes, as well as other inaccurate information on your credit report, are not your fault and in a perfect world would not affect you in any way. The world is however not perfect, and you are bound to suffer devastating losses on your account! Credit repair can be your solution. It’s the process of fixing a bad credit report. In some cases, it is as simple as fixing mistakes with the credit agencies.
Credit repair companies provide a way out of this by fixing a bad credit report for whatever reason it deteriorated in the first place. In some cases, the credit repair process may require legal as well as financial expertise depending on the extent of the problem. Nevertheless, credit repair does not always work in all cases! It actually works if you have legitimate errors in your credit report, if the errors you have cannot be verified and if your lenders are willing to work with credit repair agencies.
When the term credit repair is mentioned, people tend to associate it with organizations that charge a fee, promising to rid your credit of negative information. This is, however, something you are capable of doing for yourself! If you feel that there is inaccurate information appearing on your credit reports, you are obliged to contact any credit reporting agency and dispute that information at $0 charge!
Credit repair companies have no special rights or privileges when it comes to arguing information on your credit reports! They are regulated by the Credit Repair Organization Act. Therefore, it is essential to be aware and cognize your rights under this state law. The law requires from the organization;
It is evident that the CROA is all about consumer protection from companies that charge them and deceitfully assure them on negative but correct items removed from their credit reports or magically improve low credit scores that are grounded on accurate information.
The most common way to improve your credit scores is by paying your bills on time. It is evidently more beneficial to you because the money you would otherwise spend on hiring a credit repair firm can as well be used to pay outstanding debts on your credit report and update any past dues on your account.
After receiving a credit score, pay attention to the list of elements in your credit report that mostly affect your score. This will help you determine what changes you can make to increase your credit rating.
Be aware of your credit utilization rate. Basically, this is a sum of all of your revolving debt such as your credit card balances divided by the overall credit that is available to you (your credit limits). To be safe, keep your credit utilization rate below thirty percent (30%)
Consider how many credit accounts you have. If you have outstanding debts across different accounts, it is advisable to pay off some of the accounts if you have the means. After paying off, keep the account open which can be a plus in your whole credit mix since they are matured accounts in good standing. Finally, avoid opening several credit accounts in a short period of time as this may seem perilous to moneylenders and negatively impact your credit scores.
There are a lot of credit repair companies listed on the link but make sure when determining a good credit repair company, look for longevity, reputation, and money-back.
Bottom line, a credit repair company is not a warranty to fix your credit scores. However, if you are aware of the risks and select a reputable company with a good money-back guarantee, you can buoyantly evade being burned.