Suffering from poor credit? You are probably wondering what
you need to do to repair your credit score. Do you need the
help of a credit repair agency, or is this something you should
do on your own? Credit repair is possible, but you must take
careful steps to fix the problems you have and keep them from
Your credit score affects many things in your life. The most
obvious is your ability to get a loan. If you have poor credit,
you will not be able to get a good loan, if you can get one at
all. However, a credit rating that is in need of repair can
also affect your ability to get a job, since employers will
sometimes look at your credit rating to determine if you are a
Credit repair takes time. Any company that promises you instant
repair to your credit score has something to hide, because it
takes several months to raise your credit score significantly,
unless there are errors on your report that you can fix. The
length of time it will take to raise your score depends on what
is harming it. For example, most bankruptcies and delinquent
accounts can stay on your report for 7 years. Tax liens will
stay on your account for 15 years. Inquiries will remain on the
account for 2 years. You can counteract these negative items by
adding positive accounts to your report, but it will take time
for the positive to counteract the negative.
think that closing the credit cards that they are no longer
using is the answer to quickly raise their credit score. This
is not true, because one aspect of your credit score is your
credit history. The longer you have had a particular item, the
better it will affect your credit score. Closing too many cards
that you have had for a long time can actually lower your
credit rating a little bit. Instead, pay down the balance, but
keep the card or account open.
need to repair your credit score, start by making all of your
balances current. Then pay down your balances as quickly as you
can, but pay attention to how you are paying them. Pay each
balance so that it is a third of the credit limit on that
account. Accounts that have balances that are close to the
credit limit will damage your score. Also, check your credit
history for errors, and have them corrected if you find
We will work with you to get you back on
track to having a fulfilling future!
repair companies with caution. Much of what they can do for
your credit score you can do on your own. No company can
improve your credit score magically. This takes work on your
part, no matter who is helping you. If you do need to use a
credit repair company, shop carefully to find one with
reasonable fees. Also, make sure that the credit repair agency
will help you learn how to manage your money so that you do not
end up in credit trouble again in the future. To avoid a scam,
so common in this new, growing industry, consider the
- Check how long the company has been in business.
Investigate its track record at your local Better Business
Bureau or online. Although a short history isn't a sure-fire
sign of a red flag, a new company has more going against it
than a better established, older company.
Step 2 - Secure an initial free consultation.
No company should object to giving an hour-long,
Step 3 - Ask the consultant for legal advice
on what you can do for yourself without hiring a credit repair
company. The company should provide you information on what you
can do for yourself.
Step 4 - Find out whether they want you to pay
fees before they provide credit-repair services. Get up and
walk out the door if they do. Under the Credit Repair
Organizations Act, you're not required to pay a credit-repair
company until it has delivered the services promised.
Step 5 - Be alert for requests to create a new
credit identity. One common scam is to use a false Social
Security number. Another common scam is to register as a
business and obtain a new federal tax ID number that doesn't
show any credit history.
Step 6 - Avoid suggestions to harass creditors
or simply dispute negative entries into your credit
history. Remember the goal is to restore your credit