So you’re in debt and your credit stinks, that's Where, Why And How Proper Credit Repair Advice Can Change The Life Of Debtors.
At this time, you’re left with only 2 options – (a) take an ostrich approach and ignore your credit problems hoping everything will be fine soon (b) read this article to get the complete beginner’s guide to credit repair advice for debtors.
The ostrich approach is best suited for the people who believe in doing nothing. They try to escape from the problem and hope that God will do everything for them.
What they forget is the fact that God only help those who help themselves. If you really don’t want to put up with bad credit for the rest of your life, then get proper credit advice from the authentic sources.
Why do you need proper credit repair advice?
Wrong credit repair advice can throw you into a deep pool of troubles. Fraudsters are ready to sit at your doorstep and give you wrong advice for making quick money. They would charge an upfront fee and promise to clean up your credit within a few days.
However, the truth is, they would do nothing to improve your situation. All they would do is vanish after taking your hard earned dollars.
As per the most popular consumer watchdog of the nation, the Federal Trade Commission, a credit repair company charged $2000 advance fees before offering any kind of service to its customers.
This is a clear violation of federal laws. If you come across any such company, then make sure you register a complaint with FTC.
Why you need right credit repair advice
It is important to get credit repair service for the following reasons.
Right advice can help to remove inaccurate information from your credit report.
It can help you improve your credit-utilization ratio
It can help you qualify for loans in future at better terms
It can help you avoid scams
How proper credit repair advice can change your life
Right credit repair advice can help you bring positive changes in your life through the following ways:
1. Clean up your credit: You probably have heard the adage “look before you leap”. You need to look at your credit report before you jump into the credit repair process. Experienced credit counselors will advise you get a copy of your credit report and look at the sections containing
Personal information
Public Records
Tradelines
Credit inquiries
If you identify any mistake that is affecting your credit score, then counselors would advice you to contact the credit bureaus immediately. They will show you the process to dispute errors on your credit report. Once those errors are removed from your report, your credit will shine again.
2. Make your creditors happy: You know why your credit sucks? This is perhaps because your creditors are not happy due to lack of regular payments. Credit counselors will help you make your creditors happy by making timely payments. They will suggest you the tricks to pay bills ahead of time. For instance, they would suggest to schedule payments through the bank’s automatic bill payment system.
3. Pay off your debs: One of the worst parts of financial crisis is to deal with a debt collection agency. Cease and desist letter may help you ignore the collection calls. But it wont help you solve the real problem. The collection agency can still report to your credit report. Besides, you’re still responsible for the bill.
The collection item will be there on your credit report even after you’ve paid the full amount. So, it wouldn’t help to increase your credit score promptly.
When you’re in credit crunch, the first thing you tend to do is skip making payments on debts. But this is a wrong move. Even if you don’t have sufficient money in your wallet, try to make minimum payments to creditors. This will help you stay away from collection agencies and protect your credit.
4. Keep your balance low: High credit-utilization ratio is not at all good for your score. Qualified credit counselors know this fact very well and they would always advice you to keep your balance low.
Try to reduce the number of credit cards with high credit utilization ratio. This means if the balance on any credit card in in excess of 50%, then your job is to bring it down to less than 30%. A low credit-utilization ratio would help to make a positive impact upon your score.
Knowledge gives you the ultimate power. If you wish to succeed in any field, then it is important to have a knowledge about the subject.
For instance, before venturing into the stock market, you should at least know the basics. Otherwise there are always high risks of losing money. Likewise, if you want repair your credit (whether on your own or through an agency), you should at least educate yourself. This will help you understand if credit counselors are giving you right advice.
Featured Photo by Amy Hirschi on Unsplash
