Warning Signs on Choosing the Best Credit Repair Service That Can Help You Fix Your Credit Score
There are different reasons as to why bad credit exists. These include incorrect balance information, unpaid collections, bankruptcy, outdated information and late payments. Whichever the reason, a bad credit score does not vanish with a simple snap of your finger. Fortunately, a credit repair service can help you fix your credit score and enjoy the benefits that go with having a good credit score.
Keep in mind that there are a lot of scammers out there so be careful when choosing your credit repair service. Many people have lost thousands of dollars to phony companies who take their money don’t do anything about their credit report. If your chosen credit repair service possesses these warning signs, it is definitely time to look for another.
- The credit repair service doesn’t want to divulge your legal rights.
- It requires you to pay first before they do the job.
- It suggests that you to take ‘illegal’ actions such as disputing everything in your credit report or making a new credit identity. Keep in mind that such actions could be a reason for you to be charged of fraud.
- It advises not to call the credit bureau.
According to the Federal Credit Repair Organizations Act, any credit repair service should present a detailed written contract regarding the kind of services they can provide including a 3-day right to revoke the agreement without charge, an outline of the total cost and guarantees and it should establish the duration of the whole process.
Before hiring best credit repair services, it is important to note that correct negative information will be on your credit report for 7 years, criminal records stays on forever and bankruptcies are registered for 10 years and no credit repair service has the ability to eliminate them.
Aside from having a credit repair service, there are certain things that you can do on your own to fix your credit score.
Check your credit reports. Have a copy of your credit report where you can find your payment history. If you don’t have negative information on your record, it is recommended that you request your bank for lower interest rates. On the other hand, if there’s an error, you have to dispute it with the credit bureau and report a separate dispute for every error you find. Setting a fraud alert is also advised to warn lenders to validate your identity before opening new accounts.
Fix late payments. A lot of people tend to close their accounts due to missed payments, wishing that they will just vanish into thin air. However, credit repair service companies recommend settling late or missed payments. It’s helpful to set due date alerts with your loans and credit cards and make sure that you will be able to pay on schedule. You can also request your lender or credit card issuer if they can forgive your late payment.
Acquire a secured credit card. You can do this with your bank account as collateral. Make sure to avoid credit cards that charge fees for application and go for those with low annual fees. In addition, select a card that will be stated on your credit report.
Avoid applying for several credit cards simultaneously. Unlike applying for student loan, auto loan or mortgage, applying for numerous credit cards creates various ‘hard pulls’ regarding your credit history, which can affect your score.
It is not easy to fix a bad credit score as it requires changes in spending habits and one’s viewpoint on money. In addition, don’t expect results immediately. Usually, it takes about one year to accumulate a good payment history, which will affect your score and up to ten years in order to eliminate bankruptcy. Hiring a reputable credit repair service is a good idea if you are not confident about tackling the problem by yourself.
However, if you think that it’s too late and bankruptcy is unavoidable, it is recommended to file your bankruptcy sooner in order to get yourself back on track. Consider whether you need to file bankruptcy so that you can start with the process in advance and start fixing your life.
Joan Geller writes articles about effective ways on how to fix bad credit for a few years. Her works have been published in different online magazines, which have helped a lot of people especially those who are struggling on bad credit history. Learn more about fixing credit score by visiting http://www.nationalcreditorganization.com/.