Bad credit is like a ghost that haunts a person’s financial life. The “haunting” has many ripple effects. Bad credit makes being approved for a loan difficult and more costly. Credit checks are routinely performed when seeking employment. Poor credit reports may turn a potential employer off. A myriad of problems may arise from credit that remains poor. Those with bad credit want to make the credit score improve and for all the problems to go away. Is this a do-it-yourself job or should a professional be hired to assist? Honestly, the answer depends on a number of factors. In general, however, fixing a credit score without a service’s assistance is workable.
Where does one begin with credit fixing? The whole process starts with requesting a credit report and carefully reviewing it. Some trouble spots may be fixable without any interactions with a third party.
Fixing Up Inaccuracies
Mistakes and false information may appear on a credit score. A process does exist for correcting the record. Upon noticing a total inaccuracy on the report, procure proof that reveals the information to be wrong. Send copies of the information to the credit reporting agencies. There are three major ones. All should receive the corrected documentation. Mailing out corrected information is very easy. Doing so can be done without paying a credit repair service for existence.
Dealing with Accurate Information
Negative reports stay on a credit score for seven years. The exception to this rule is a bankruptcy filing. Bankruptcy takes 10 years to disappear from a credit report. No credit repair company can change such statutes and laws. What a credit repair company can do is negotiate with the creditor in certain circumstances. For example, a $1,500 default on a debt to a previous landlord may be dragging down a credit score. Three years have passed and four more remain.
A credit repair company could make a very professional offer to the creditor. An $800 settlement may be offered with the agreement that the debt will be pulled from the credit report. While the debtor may try to contact the creditor on his or her own, professionalism means a lot when putting forth these types of offers. Maybe working with a professional service would be more helpful in a scenario like this.
Taking the Initiative to Fix Things
A credit repair service, honestly, is very limited in what it can do. The person whose credit is in bad shape may be able to do far more for him or herself. Numerous elements come together to create a credit score. New credit covers 10%. The duration of one’s credit history is 15%. The forms of credit being used — credit cards, personal loans, auto loans, and so on — reflect 10%. The two major ones, payment history and available credit, are 35% and 30% respectively.
A borrower has a lot of power over how much credit is used and whether or not timely payments are made. Choosing to borrow far beyond one’s needs and racking up huge, difficult-to-pay credit card balances is a bad idea and, frequently, a personal choice. So is paying debts on time. Situations can arise when financial difficulties make paying debts difficult. Being laid off from a job is unavoidable. Irresponsible borrowing is avoidable.
Follow a few simple fiscal rules. Don’t do anything that ruins a credit score. Take personal responsibility in this area.
Any person who has suffered financial setbacks should immediately work on straightening things out when circumstances improve. A credit repair service might aid in fixing some things, but the service can’t make someone make the right financial decisions in life. The limited assistance of a credit repair service are actually even more limited from looked at from that perspective.