Credit Tips
Despite the best intentions, there are times when a consumer finds himself
in the position of needing to repair or reestablish credit. Because of
the effect that a negative credit report can have on financial, housing
and employment opportunities, the repairing of an injured credit status
can be of great significance to quality of life. There are a variety of
means through which to accomplish this very important task.
The first step is to obtain a copy of the credit
report. In order for the credit report to be complete, it must contain
the data from each of the three primary credit reporting agencies as these
national agencies do not share or exchange information. These agencies
are Experian,
Trans Union
and Equifax.
A credit report can often be obtained free of charge. Once the consumer
has a copy of his credit report, he must then check it carefully for inaccuracies.
If incorrect information is found, he has a legal right to dispute such
information, and if successful, to have it removed from his report.
Another technique that is frequently recommended is to obtain credit
privileges from a retail store or a gas company and use that credit, being
careful to make payments on time. This begins to add positive information
to the credit report, information that will also be considered by those
viewing the report. A secured credit card from one of the major credit
card companies can be useful in this process as well. A secured card is
easier to get, as the card is secured by an agreed upon amount held in
a savings account. As the consumer demonstrates responsibility, he is
able to gradually earn a credit limit above and beyond what is secured
by his savings account.
Credit counseling
services may be of use to the consumer who has a more complex credit situation.
However, it is very important that the consumer carefully research the
providers of such services, as there are many disreputable organizations.
These types of organizations often use illegal means to achieve their
ends, such as stealing social security numbers to create fresh credit
reports. There is no legitimate way to erase an accurate negative
credit report, despite what advertisers may claim, other than to earn
it back over time. The Better Business Bureau or the Federal Trade Commission
can provide information to aid the consumer in making a safe choice.
When working with a legitimate credit counseling service, the consumer
can reap many benefits, including debt consolidation and reduction, as
credit counseling services often have a greater ability to negotiate with
creditors than do less experienced individuals. These services are widely
available and many non-profit providers offer low-cost credit counseling
services, with many providing assistance free of charge.
The most important aspect of credit repair that the consumer should know
is that he should not procrastinate due to feeling overwhelmed. Successful
credit repair can be achieved
through steady effort over time. However, it is up to the consumer to
begin the step-by-step process towards an effectively restored credit
status and the security that it brings.
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