Good News Bad News On Using A Credit Repair

 Good news, bad news about hiring a credit repair company

If you do a Google search for the term credit repair, the first website to appear in the natural lists is the Federal Trade Commission. And the first thing they discuss is that people should really do their own credit repair work.

the reason? Because of all the scammers claiming to be experts in credit repair and taking advantage of many unsuspecting consumers. They use every trick in the book to discredit the services they provide. The worst part (aside from losing your hard-earned money) is that it can do more damage to your credit score.

There are many good and honest organizations that can help you fix your credit score. Like local civic organizations, churches, and legitimate nonprofit agencies that will guide you through the maze. Our credit system has many twists and turns and can be confusing to someone unfamiliar with the terms and laws that govern the industry.

It requires persistent effort on the part of consumers. And these days, there are many companies that offer credit just to make a sale and ignore the fact that the consumer could soon sink into debt. So it is much easier to get into trouble than to get out.

Why is good credit so important? Because your credit score (and other considerations) will determine the interest rate you will be charged on any loan. It can mean a difference of more than 3 points of interest (for a new car, a good credit score is around 8%, so if you have a low score, that could mean up to 12%).

Insurance companies and employers have begun to use credit scores to determine rates and job offers. If your score is low, even car insurance can cost you more. And you might not get that great job offer either.

Credit repair companies that make unrealistic claims that are better only to be true often benefit from the general lack of knowledge that most consumers have. Things got so bad a few years ago that Congress passed an updated bill to help curb the madness. Not that I support a lot of governments, but in this case they helped the consumer.

Anyone who gives you a 100% guarantee of bad credit removal, bankruptcy removal, liens and judgments, is not being honest. Any company that offers to create a new credit profile, gives you a new ID, or asks you to apply for a new Social Security number does not do you a favor and could land you in jail.

The good news is that you can improve your credit score, and in most cases sooner than you think. All you have to do to get started is to learn a little about the credit system and how it works. Deciding to start a business is the first step.

To get an accurate assessment of your current credit score, you are entitled to request one free credit report from each of the three credit bureaus (Equifax, Experian, and TransUnion) each year. You can find out how by going t credit or by calling 1-877-322-8228 and requesting information.

The next thing you need to do is take a closer look at what you owe, your current payment status, and the income you have to work with. Once you have a good idea of ​​your current debt, create a realistic monthly budget. Getting the facts straight will help you come up with a good plan.

The FTC website above has very easy to understand instructions on how to handle inaccurate information, how to contact credit bureaus, and what to ask for on your credit report. Take your time and read the article.

It is very likely that you have incorrect information on your credit report that can be removed. You can also contact your creditors to come up with a workable payment plan and arrangements to get you back in good standing. Most companies are willing to work with you.

However, care must be taken if you are dealing with a collection agency. Most collection companies operate on a percentage basis, and if you don't keep an eye on it, they can take advantage of you. For real information about what they can and can't do, visit this FTC website: http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Depending on the individual situation, most consumers can improve their credit score in as little as 30 to 60 days. I've seen people go back to their high 60s or low sevens in 12 to 15 months, which is pretty cool. Since your word game