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The Right Way To Credit Repair
If you have a bad credit rating, then you might find that your
ability to get financing, loans, and even some jobs is greatly
diminished.
Once you have a bad credit rating, it might seem like there's
nothing that you can do about it? but you don't have to believe
that. It's not as difficult as you might think to get by with a
bad credit rating; with a little work and time you can even
repair it! Of course, before you do that it's important to
realize exactly what a credit rating is.
Every time a lender or other creditor makes a report
concerning your payment history to them, this report affects your
credit score.
Your credit score is a numerical indication of the positive
and negative reports that you've received from creditors and
lenders; if the number is high then you have a good credit
rating, and if it's low then you have a bad credit rating.
Basic credit repair
Get organized! Make a folder for all your correspondence
offline and online. You will have to do some snail mailing but in
most cases you can work your repair online.
In the U.S. a 630 rating will qualify you for a mortgage. You
can still get credit with a lower score but not at a premium
interest rate.
In fact, even a chapter 11 bankruptcy (erases all negative
credit) is not as bad as many think. I am not advocating filing
for bankruptcy (the laws have changed so you might have to set up
a re-payment schedule if your income allows) but for those caught
between a rock and hard place, unemployment, medical crisis,
divorce...many good reasons for finding yourself unable to pay
your bills, filing for bankruptcy is a god-send.
Many times, you will find creditors very eager to extend
credit because you don't have any debts! It is the irony of the
debt-income picture... if you have a steady income, you will have
no problem getting credit cards, auto loans and even a
mortgage.
So, don't despair, your situation is not as bad as you think!
You will find a way to less worry, more sleep and better
relationships.
To begin correcting your credit, the important thing to do is
obtain your credit report and study it. Mark all the negative
items.
Most unsecured credit, mostly credit cards, can stay on your
report for 7 years. If you find any over that, write to the
credit bureau and ask them to remove it. They are required by law
to research and report back within 30 days.
If they don't, you can threaten them with a letter to the
Better Business Bureau or Federal Trade Commission.
Find any other negative items and determine if they are
correct. If not, write the bureau and tell them its not your
debt.
Even if you aren't sure, ask the credit bureaus to
investigate. Many times, they will not be able to verify the debt
because the credit card company, auto loan company, or other
creditor won't get back them within 30 days (required by Fair
Credit Act).
For the contact information on credit bureaus as well as
samples of letters to send to them, go to:
http://www.repair-credit-right.com
You may freely reprint this article provided the following
author's biography (including the live URL link) remains
intact:
Dan Farrell is the owner of Repair Your Credit...The Right Way
and this article on credit repair and others on credit can be
found by going to:
Credit Repair
MORE RESOURCES:
Credit - Google News
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