While credit repair can be made with the professional help of credit repair agencies or attorneys, it will be expensive. Top companies and attorneys could charge as much as $3,500 for repairing damaged credit reports. Debtors can save their hard earned money without going for professional services. They can accomplish the task using their own efforts.
Basic Features of the Credit Reports
- Electronic credit reports generated by credit bureaus include everything from the name and address of the debtor to all information relating to his or her financial status.
- Such report also includes the paying habits, bankruptcy as well as criminal records of the consumer indicating all financial activities.
- Information provided in the credit reports are used to find out whether the consumer would be a good borrower. At the same time it can also decide whether the consumer could turn out to be good employee.
How to Remove Negative Components from Credit Report?
Following a few steps one can accomplish the desired task of removing negative components from the credit report. These steps include: –
- Checking the credit report is the first step;
- Contacting the credit bureau and asking for free copy of the credit report is the next step;
- Consumer will be eligible for free credit report if he or she was denied credit within past 60 days;
- A careful review for inaccurate or offensive information should be made;
- Re-verifying and adequate handling of the credit reports are necessary;
- Disputes should be filed in respect of wrong entries and steps should be taken to get them removed from the credit report.
Legal Aspects of Credit Repair
According to law credit bureau should investigate dispute within 60 days of receipt of the same. Every negative component in the credit report can be dispute but one should be careful not to dispute accurate and authentic facts. Consumer should make it a point to submit dispute files through certified mails ensuring receipt of acknowledgements. When the credit bureau after investigation decides to retain the negative report, a letter of explanation can be sent to them.
Rebuilding Credit Report
Simply removal of the negative components from the credit report won’t suffice. It will be necessary rebuilding the credit report after that.
- Adding positive components like small secured loans or obtaining secured credit cards would help improve consumer’s credit report substantially.
- Cosigning someone in the credit obtained would be good when such cosigner has a good credit report;
- Building up credit report will render the consumer fit case for further loans and financial assistance.
Obtaining Advice of Reputable Repair Organization
Reputed credit repair organization can render positive advice on managing money as well as debts. However care should be taken to ensure that such organization is duly approved by Government. They help the consumer in: –
- Developing a budget;
- Offering free educational materials and workshops;
- Certified and trained counselors help in credit, money as well as debt management;
- Assist in solving money problems;
- Initial counseling session lasts around four hours resolving various problems;
- Follow up sessions are also there that help in resolving additional problems.
Checking Points for Do it yourself Credit Repair
When some consumer is trying to make credit repair on his or her own; some checks are to be conducted. Especially periodical review of the credit report is very important. Three reasons contribute to such importance such as: –
- Determination of eligibility for further loan or financial assistance and amount payable to obtain it;
- Accurate and complete information an dup to date status for purchases and procurement of movable and immovable properties and insurance;
- Such periodical review helps prevent identity theft.
Despite the clear financial advantages rendered by do it yourself accomplishments of credit repair, it may not be suitable for all. Some people do not relish the prospect and have no knack for doing it and for such people it is always better to opt for professional services though a bit expensive.