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[S272]Self Help Credit Repair

by Joe Devine, Joe

Bad credit not only looks bad but it makes it difficult in the future to receive fair loan interest rates and may affect your ability to buy a home when you want. The Federal Trade Commission, which claims to protect America's consumers, recommends starting with self-help rather than going with a credit repair agency such as the ones that send out fliers advertising quick fixes to your credit repair problems. These companies often involve scams. While their methods may work for some people, they are not useful for everyone. For this reason, the FTC recommends self help first. They provide a list of steps to follow. They are summarized below.

Step One

When you receive a report from a consumer reporting agency that you believe is inaccurate, tell them you think it is inaccurate. Many times, mistakes are simply made. It is important that they are aware that you know something is amiss and that you are paying attention to what they send you.

When you send them a letter detailing inaccuracies, you need to send off copies of documents that support your position. Do not, under any circumstance, submit the original documents. If your originals are gone, so is any proof that you have that supports your side.

Once your report is submitted, the reporting agency generally has 30 days to rule on your report. If they view your dispute as frivolous, they can dismiss it immediately.

Step Two

Tell the creditor or other information collector that you dispute an item. This group needs a copy of documents that support your position as well. They will need your dispute in writing, not over the phone, and will probably request an address as well. If your dispute is shared with a consumer reporting agency, the creditor must enclose a copy of the dispute. If the information in dispute is found to be inaccurate, the information provider may not report it again.

This two step process seems easy enough but when there are issues with the future rates on loans which affect your entire financial life, it is important to get these things done correctly. The credit reporting system is flawed to a degree.

In addition to these two steps, the FTC also recommends that people not buy into the quick-fix groups. These groups are often just running scams. The biggest clue that they are running a scam is that they ask for money before they provide any help. Another big sign that the company may not have your best interest in mind is the company that won't tell you your legal rights. The third biggest clue, and the one that directly contradicts everything else the FTC recommends, is the company that tells you not to contact the credit reporting agency on your own.

Each creditor will set their own standards for deciding whether or not you are eligible to be approved, and their views on your credit history will vary. There are some that will only look at your record from recent years, and some will be more lenient with giving you credit if it appears that your payment history has steadily improved. A good way to determine whether or not you will qualify with a company is to call the creditor directly and discuss their regulations with them. The worst that could happen is that you could be denied, and even though this may be an incredible blow to your ego, you will not be any worse off than before you made the phone call.

Many creditors are open to working out a repayment schedule. However, you should only consider this option if you are unable to work out a schedule for yourself but you feel like you can work under the deadlines of a creditor's budget. There will be no good result if you waste someone's time making them find the best option for you, and then fall behind on your payments again. There are also credit organizations as well as non profit companies that are dedicated to helping people get on schedule with their payments, but try to research these companies before enlisting their help because they are not always trustworthy. You should also make sure that you learn about all of their fees upfront whether they are higher than average or hidden fees. Also, just because a company is non-profit, it doesn't mean that you have to make a contribution. If you were in a position to give money away, you would not be requesting their help. If you are going to get help from a management company, make sure that you find one that will conduct their services in person as opposed to the Internet.

Too often people feel the only way out of a bad credit situation is through bankruptcy. Filing for bankruptcy is not the easy way out at all. When you file for bankruptcy it will take you at least seven years to recover and your goals of buying a house or a car will be even further out of reach. In October of 2006 a new amendment was added to the bankruptcy laws stating that everyone filing for bankruptcy must seek credit counseling within six months of filing. If you think about it, it might be worth your while to seek the counseling and learn how to better manage your credit rather than file for bankruptcy and postpone the inevitable.

Although you think your future credit looks bleak, you have to remember that there are steps you can take to fix your credit and get it back on the right track. Whatever you do, don't give up. Rather than hide your head in the sand or look for the easy way out, make an attempt to fix your credit, whether it's through counseling or other means. If you do that, then somewhere along the line someone will be willing to take a chance on you again.

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Both Joe Devine & Deanna Mascle are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Joe Devine has sinced written about articles on various topics from Drunk Driving, Fitness and Mobile Phone Reviews. If you are facing negative credit reports that are affecting your life, contact the Credit Repair Attorneys of Smith and Garg, LLC. They will fight for your credit and try to place your name back in good financial standing as soon as possible.. Joe Devine's top article generates over 6600 views. to your Favourites.

Deanna Mascle has sinced written about articles on various topics from Kids and Teens, Personal Development Plan and Abortion. Deanna Mascle shares more advice at her site at http://answersaboutcredit.com where you can also download the free ebook ". Deanna Mascle's top article generates over 165000 views. to your Favourites.