Fast Credit Report Repair
From LoveToKnow Creditcards
There's no shortage of companies promising fast credit report repair out there. If you have a few credit dings and are in the market for a new mortgage, car, or simply don't want to risk turning off potential employers or landlords, chances are you've considered taking the bait. Here's what you should know before attempting to fix your credit, whether you grab the bull by the horns yourself or hire someone else to do it.
How Bad Is It?
If you haven't checked your credit lately, this is step one. Get a complete report from all three reporting agencies -- Experian, TransUnion and Equifax -- since that's what a lender or employer will look at. Mistakes are shockingly common, so compare everything carefully, take notes, and compare the scores. Many lenders go by the middle score, so if you have say 712, 719 and 658, thanks to some obvious glitches in the last one, you may still sail through without a hitch. If you're in the 500s or low 600s, you may have to get busy before submitting your paperwork.
What Can Realistically Be Done Yourself?
First of all, your credit report reflects reality. If you declared bankruptcy last year, there's no slick moves you or anyone else can pull to remove that leper sign until the seven years have passed. Thus, you have to focus on the inaccuracies found in the reports above.
Start months before you need your loan/job/apartment and challenge everything that's off the mark. For example, suppose one of your credit cards got its limit bumped from $3,000 to $5,000, but the reporting bureau didn't update that part. A few months ago you hit a peak balance of $4,200 before knocking it back down -- still no problem, since you were nowhere near you limit, right? But according your credit report, it looks like you racked up a whopping $1,200 over the limit, dinging you several points right off the bat.
Other things to check include closed accounts left "open" (thus pumping up your total unused credit), failure to account for partial payments, and the total loan amounts and credit limits. If you're really unfortunate, this is also the point where you'll spot accounts you've never opened. Best-case scenario, it's a clerical error that is fixed right away, but you could be the victim of identity theft. This is an extremely difficult situation where you'll be well advised to seek professional help immediately. Hopefully, you'll only find your own accounts listed.
If you're currently in trouble with a lender, get on the phone right away and start communicating. These are tough times and they would much rather cut customers a little slack with lower fees and reasonable payments plan than push people into bankruptcy and end up with the grand goose egg. More importantly, it stops your credit rating bleeding and show that you're on the ball. Again, it is important to start this process as early as possible, preferably before you've even hit that first red flag on your report.
If there's no current disaster area in your credit, but you're still some points short of getting the kind of terms you'd like, you may tip the scales by paying down your debt as much as possible during those last few months before applying. Start with the ones closest to the credit limit and squeeze every penny you can in there. Sure, Ramen noodles and no movies for three months is a drag, but if it'll help you land a mortgage for $100 less per month for the next 30 years, it'll be well worth it.
Fast Credit Report Repair Specialists
If you're in deep, or simply don't feel comfortable tackling the impenetrable fortresses of bureaucracy that make up the credit reporting world, you may want to get help. There are organizations out there that are happy to help with advice and, if suitable, creating a payment plan where you pay a lump sum each month which the organization pays out to lenders. This won't scrub your credit squeaky clean overnight, but it may plug the leak and keep things from getting worse every month.
However, beware of the slick guys promising miracles, especially those who call you out of the blue. There are a number of stories about distressed homeowners being scammed out of their houses. Assume the worst and never sign anything until you're doubly certain of what you're agreeing to. Fast credit report repair specialists do charge for their services, but it should be reasonable and clearly disclosed up front. If some guy calls and promises to solve everything if you just give him your credit card number, even if he's surprisingly well versed in your economic situation, listen to your inner voice that tells you to hang up.
Ultimately, it takes years to truly repair a credit history, but fixing the mistakes and stopping the damage from accounts in bad standing can have a noticeable impact on your scores in mere months. Good luck!
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This page has been accessed 879 times. This page was last modified 03:46, 26 July 2008.
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