Self Credit Repair
A Credit Article Contributed by Gina Betcher
Self Credit Repair
Credit repair can seem to be an insurmountable challenge. Perhaps you are already contractually committed to repaying your debt through a credit card consolidation program. When this commitment is over, will you then be able to apply for a credit card? Will your negative history be listed on your credit report as though you had filed for bankruptcy?
What Can You Do to Repair Your Credit History?
Whatever your level of credit card debt, credit repair agencies can be as manipulative as credit card lenders. Offers for credit cards still arrive in the mail, addressed to potential applicants who are financially over extended. The lenders inform the applicant that, "based on your credit history, you are qualified for x amount of credit at a low introductory APR". The truth is, the creditor has not reviewed anyone's credit history as this would have cost the creditor money. With the applicant's signature, however, the lender receives permission to review actual credit history.
If you are financially over extended, imagine any additional offers from credit card companies and credit repair agencies as buzzards swooping down to pick at the remnants of what used to be a person with good credit. You are still that good person, just better informed about the true costs of credit card debt. With your experience, you are your best expert for accessing information about your personal credit history to repair your own credit.
The First Step Towards Effective Credit Repair
A personal credit report lists every type of creditor, lenders addresses, payment amounts, repayment dates, and other data. On the report, you are likely to find store cards that you forgot about and owe nothing on. You may also find suspicious charges. With a credit report in hand, you can contact lender(s) to close accounts, renegotiate APRs, and challenge suspicious charges. For effective self credit repair, it is important to close unnecessary accounts and challenge questionable charges, thereby reducing the amount of open credit on your report.
Know the Risks of Negotiating with a Credit Repair Agency
If you seek help from a credit repair agency to help improve your credit rating, begin by investigating the agency. Government agencies related to personal finance list the names of fraudulent credit repair agencies and reputable members of an accredited organization, such as the Better Business Bureau.
What credit repair agencies cannot promise is the impossible. For example, credit repair agencies cannot claim to:
- expect payment in advance of services
- act as a lending agent
- act as a solicitor
- negotiate terms of bankruptcy
Credit repair agencies can offer debtors a contract that states:
- the duration and total cost of services
- the limitations of the agency's powers to negotiate with lenders
- the agency's full legal name, address, and contact names and telephone numbers
What Else to Look for in Credit Repair Agency Literature
Outside of the repair agency's contract, literature by will quote satisfied customers, and narrate personal success stories. Glossy brochures also deserve close inspection, however. Although the agency cannot cite your personal debt, the agency can and should accompany personal success stories with actual numbers -- duration and total costs for services -- for examples, and list accurate and full contact information.
