The Basics of Credit Repair Process
By having a credit card, you are using someone else’s money as payment for your purchases. You are swearing to repay the amount purchased.
When applying for a loan, credit card or mortgage, it is normal for the agency to check your
credit worthiness. This is based on the assessment of your credit history, thus helping them determine the possible risks of the deal and decide the terms of the loan.
A positive assessment means good financial background, which increases your chances of
applying and obtaining credit.
The Credit Repair Process
The process wherein consumers with poor credit histories try to reestablish their worthiness is
called “credit repair”. It involves procuring credit reports from the bureaus and taking careful and appropriate steps in addressing apparent issues, including omissions, misreporting, misinterpretation or other inaccuracies.
If there are any discrepancies found in each credit report, the consumer is entitled to dispute the errors that unjustly harm their financial healthiness and credit worthiness. There are several laws and regulations that are designed to guarantee fair and legal undertaking of the credit report process.
The main law is the Fair Credit Reporting Act (FCRA).
Using the Law to Aid in Credit Repair
Under FCRA a consumer can legally and formally start the process of credit repair.
Every consumer is entitled to one copy of credit report each year from each credit reporting bureau. Successful credit repair involves conducting investigations with regards to the real nature of the inaccuracies and errors.
Your credit record is what influences your purchasing power and eligibility of availing any credit facilities in the future. You should keep in mind that a good credit score can help in several purposes, such as: mortgaging a home, buying a car, obtaining a low interest loan or applying for a job.
On the other hand, a bad credit score can make you vulnerable to exorbitant interest rates and unnecessary loan terms from several companies. These two facts are important in helping you understand why maintaining a good credit score is vital.
How to Repair Your Credit
The process of credit repair can be achieved through hard work, discipline and time. Easy methods, which can help you get out of poor credit history, can be quite tempting. However, the easy way out can only lead to further difficulties in the future especially if they are done illegally.
In case your poor credit history is caused by circumstances beyond your control, you can always request for an upgrade in your credit rating to your creditor. However, this can only be done if you were able to make amends to your credit records after the circumstances.
Repairing Your Credit Takes Time
Keep in mind there are no quick fixes in repairing your credit. Remember, it took time to obtain poor credit and it will take time to repair your credit.
The best course of action is to access your current credit situation; analyze your credit standing via your credit reports and credit score; create a list of all your debts and begin a budget; then determine if you are able to DIY your credit.
Leverage a Credit Repair Expert
Most Credit Repair Experts/Consultants provide a free consultation. Take advantage of this opportunity as the experts have tips you can utilize to help boost your credit score while working to repair your credit.
If you determine you don’t have the time to dedicate to repairing your own credit, it is perfectly fine to leverage a reputable Credit Repair Expert to conduct your credit repair.