CREDIT REPAIR

Having a good credit score is one of the most important indicators of your financial health.

With time, good spending habits and a little effort, you can see your score increase. We’ve compiled a list of the best credit repair tips that will definitely give your score a boost. Many of them may seem like common sense, but you’d be surprised at how many people don’t really understand what factors affect a credit score.

If you have ever had a credit card stolen or been the victim of identity theft, you know how a wrong negative item can wreak havoc on your credit score. Even misinformation and simple human error can result in mistakes and negative items on your credit report. For example, you could pull your credit report tomorrow and find out that someone in Texas shares your name, but not your history of on-time payments – and their credit card account has been mistakenly attributed to your file! If that happens to you, you’ll want to know how to correct any wrong negative items in your credit report.

In order to dispute an error in your credit report, it’s advisable to send a letter to the consumer credit bureau (or bureaus, if more than one report is inaccurate) and notify them in writing of the erroneous information. In your letter, you should identify the item or items you dispute, explain your position and request that the information be removed or corrected. It helps to include copies of any documents that support your dispute, such as letters from the creditor confirming that you have paid off the account.


Some credit bureaus also allow you to dispute negative items on your credit report online, at their website. While this may save time, it is not always as effective as sitting down and typing an old-fashioned letter – if for no other reason than that it gives you documentation to support your case.

You’re overwhelmed by debt and every other message on your answering machine is from a collection department. You’re not sure how to deal with your bills, and the thought of bankruptcy has even crossed your mind. Suddenly, you see an advertisement from a credit repair company claiming that they can wipe away your bad credit record and give you a new credit identity. Or, they promise to remove negative items from your credit report and boost your credit score. For their “expertise” they will, of course, charge you a nominal fee. If this sounds appealing to you, walk quickly in the other direction because this type of “credit repair” might only make matters worse for you.

One common tactic employed by these credit repair companies involves disputing every negative item on your credit report. These credit repair scam companies will assure you that, while you dispute these items, the item will be temporarily removed while the credit bureaus verify its accuracy. “Credit fixing” tactics such as this were fairly commonplace twenty years ago, but in the age of computers, it doesn’t usually work that way. Accurate information can be verified within hours. If you dispute accurate items, you run the risk of your dispute being flagged as “frivolous.” Even in the unlikely event that your credit is “fixed” and the item is dropped, if the negative item is accurate, your creditor can simply report the same item to the credit bureaus again next month– after you’ve already paid the credit report scam company for “repairing” your credit.

If you declare a Chapter 13 bankruptcy, it remains on your credit record for 7 years. A Chapter 7 bankruptcy will leave its mark on your credit history for even longer: 10 years. In either case, your credit score will plunge and you will find it difficult to get any form of credit during that time. However, while a bankruptcy can deal a devastating blow to your creditworthiness, the effects do not have to be long-lasting.

While a bankruptcy filing will remain on your record for the full legal term, you can begin to diminish its effect the day after it is filed by adopting good habits with your credit and not biting off more than you can chew. Here are a few things that you can do to help raise your score and build good credits after bankruptcy.


First, there are two forms of credit you will need to rebuild if you have filed for bankruptcy. Those are:

As distinct from credit counselors or debt management programs, which offer guidance on improving your credit through better financial management, credit repair organizations offer to remove negative information from your credit report. You may have seen advertisements from a credit repair company claiming that they can wipe away your bad credit record and give you a new credit identity. Or, they promise to remove negative items from your credit report and boost your credit score.

Typically, you can recognize an offer from a credit repair company through these three steps:

Remember way back in 2006 when you had a high paying job, you were flush with cash, and even bought your gorgeous dream home? Well, fast-forward a couple of years and circumstances have shifted out of your favor and now the debt keeps piling on. With a multitude of outstanding bills and the fear of completely destroying your credit rating, which is lingering on the horizon, it is time to clean up your act and find out facts on how debt relief services work.

Before applying for an auto loan, it’s a good idea to consider a credit check – but where do you start? The process is actually very simple, and can save you tons of money in the long run. So before you go to purchase a new or used vehicle, take time to learn about how you can check your credit report and FICO score.

Conducting a Credit Check

As distinct from credit counselors or debt management programs, which offer guidance on improving your credit through better financial management, credit repair organizations offer to remove negative information from your credit report. You may have seen advertisements from a credit repair company claiming that they can wipe away your bad credit record and give you a new credit identity; or, they promise to remove negative items from your credit report and boost your credit score.

The truth is, if you simply contact the credit bureaus yourself, you will likely accomplish more on your own than you can with these types of credit repair companies. As an educated consumer, you should be aware that the way some credit repair companies operate is not only ineffective but it can get you in a lot of trouble.

Even if you are in an overwhelming amount of debt, experts advise that you consider carefully before making the decision to declare personal bankruptcy. Filing for bankruptcy has a big effect on your credit rating and can affect your ability to get any form of credit, including credit cards, auto loans, and mortgages, for many years to come.

With the advancement of modern technology, criminals have gotten savvier and they’re continually developing new ways to scam unsuspecting people. Identity theft is one of the most painful crimes to be a victim of, because not only can it be costly and require hours of effort to straighten out the mess, it can cause almost irreversible damage to your credit score. And if the crime is overlooked, you could be in a whole world of trouble when collectors come after you. That is why you should make it your priority to protect your assets and personal information from being stolen.

The best defense is a strong offense when it comes to identity theft protection. Guarding yourself against identity fraud requires due diligence. Some simple tips you can follow to protect yourself are: