Credit Repair Services - Should You Consider Them?
In Credit Repair of CreditGuru (July 11, 2009 2:02 pm)
Do You Need Credit Repair
Do you have credit issues? You can undertake your own credit repair, or you can hire a credit repair service.
The do-it-yourself credit repair route can be very satisfying, but do you have to learn the rules? Either way you must take action.
Almost eighty percent of all credit reports have errors on them. And your credit will influence your loans, charge cards, insurance, employment, and even your ability to rent an apartment. You cannot afford to ignore your credit and hope that time will cure all. While you sit and wait, the errors will compound and you will pay the price.
Credit Bureaus and the Law
If you decide to undertake the credit repair task on your own please do your homework. It’s not hard. Just take one step at a time and you will be rewarded with success.
The essential legislation that you must familiarize yourself with is called the Fair Credit Reporting Act (FCRA).
The FCRA provides the rules that the credit bureaus must comply with. The FCRA will provide the roadmap for your interaction with the credit bureaus and the leverage you need to make your credit repair project successful.
Get Control Over Collectors
If your credit issues include collection accounts you also need a working knowledge of the Fair Debt Collection Practices Act (FDCPA). As the FCRA regulates the credit reporting industry, the FDCPA rules the behavior of collectors.
Collectors can be very intimidating, but if you know your rights you will be able to control the situation and even come out ahead. For credit repair success you will also need to understand how to calculate the relevant statute of limitation (SOL) for your collection accounts. Spotting accounts with expired SOLs can save the day, not to mention a lot of money.
Lifting Your Credit Score
Credit repair success also requires a working knowledge of the FICO scoring model. There was a time when your credit would be fine if you just made your monthly payments on time. Those days are past. Optimizing your credit scores requires an understanding of many technical details and may entail opening accounts, closing accounts, reducing balances, and a myriad of other subtle adjustments. These details can make a major difference in your credit scores and in the outcome of your credit repair effort.
The Professional Credit Repair Option
If all of this seems too much, consider doing what millions of others have done and hire a reputable credit repair service. Hiring a professional for the job has certain advantages. You will not have to invest the time to learn the rules. A good credit repair service will insure that everything is done properly and efficiently. They will identify all of the opportunities to clean up your credit reports and optimize your scores while you take care of the other priorities in your life.
Do it yourself or hire a professional; I know you will succeed. Good luck!
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