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Why should you pay somebody to help you fix your credit, when it’s obvious that most of their results are often temporary at best? Handling your problems will teach you financial discipline and make you a better judge of finance going forward in life.
When you use the service of credit repair companies to fix your bad credit, you will be forced to share your personal information with them before they can do anything about your credit situation. I would not want to share this information with them, and neither should you. The truth is that you can do exactly what these companies do, if you learn how to do it. Most "credit repair companies" write letters to credit bureaus, listing few pieces of information that are false on your credit report. When the credit bureau gets the information from a credit repair company, they will then start investigating it. Since you have the legal right to obtain (and dispute) a copy of your credit report, you can improve your credit score much more effectively on your own. As you may be aware already, we have begun undertaking some major changes on DonnieMasters.com. While the list of things that we are doing behind the scenes is lengthy, it's what you are going to see that matters the most. Over the next 2-3 weeks, you will begin to see design changes, new colors and fonts, as well as a new layout. We hope to be completed by May 1st.
The need for these changes is due to time and commitments. As I begin working on a fictional series, I have less time to update and maintain a website. However, I am looking forward to the new questions and challenges that come with that road. The website needs to reflect this new way of doing things. No complaints, just onward and upward. Donnie
Let's Talk Credit Repair...
Credit repair companies are businesses that offer debit consolidation loans, debt counseling, or debt reorganization plans that guarantee to stop a creditor’s collection effort against you. One thing you must know is that these companies are established to make money so you need to be very careful when dealing with these people. I will suggest you don't deal with them at all, but if you need some help at least pick a good non profit company to work with. Caution: if you are having trouble paying your bills, you may be tempted to turn to one of this companies that claim to offer assistance in solving your financial problems. Before you sign up with any of credit repair company you have to investigate them thoroughly. You have to really understand the services that the business provides, AND what it will cost you each month before signing up with them. Make sure they have a written contract that explains all this in detail. Most consumers that engage the services of these businesses do end up actually getting more problems in the long run. It’s very important that you check the office of the Better Business Bureau to be sure the company is not a problem child. If there has been a complaint about this company previously it's probably best that you do not ask them to help you. You also need to know that businesses offering credit repair services may charge substantial fees or even a percentage of your debts and fail to deliver on their part. Their fees will add to your debt each month if they are not a trustworthy company that will actually help you. Even though it is a debt problem that can be distressing to you, you have to be really careful when selecting a solution that fits your needs. I suggest you avoid these traps at all cost, and work on your problems yourself instead. Not only is it cheaper, but it is a much better solution.
Behind the scenes, the people that compile your personal credit reports are human; they can (and do) make mistakes while compiling your credit report from all the sources that report information to them. This is why requesting a copy of your credit report every year is important for your financial health. Monitoring your credit report will allow you to see what information is being compiled about you. You will then discover any inaccurate information and be able to request a correction fairly quickly.
Once you get a copy of your credit report, many people are shocked that the credit score is not included. That's ok. Take the time to study all the information in it thoroughly and highlight all the inaccurate information on your report. All of your credit history may not be contained in just one file from a specific agency. If possible, check your report from all the other credit companies as well. Some information will be duplicated, or it may not even be included in a different file. You need to make a note of your full name, social security number, current and previous addresses, your spouse’s name, and your date of birth. Make sure that they are all correct because they are the critical pieces on information used in identifying you. Also make sure that the bank names, account numbers, date opened, date closed, highest credit limit, highest amount of credit used, and your repayment history are correct for each account. After studying your credit report carefully, highlight any errors and the way you believe it should be listed. You may have to attach photocopies of proof along with the information you are submitting in order to prove your claim. Sometimes, you will have to send a package to the appropriate credit bureau by mail. Most credit bureaus allow for online corrections, but it may be different in each individual circumstance. Once the credit bureau gets your information or correction, they will investigate your complaint and send you the results of the investigation. You will have to exercise some patience during this period because it often takes a bureau 20-30 days in order to announce their findings. You must repeat this process for every credit bureau that makes a mistake on your credit report. The fact that several agencies can compile information about you means that you will almost certainly encounter a problem at some point in your lifetime. When you apply for credit in a bank, store, or any other lending company, you may be denied credit based on inaccurate information. This does not mean the company you filed errors on your reports with didn't make the changes, it’s more likely that the bank or store you are trying to deal with use another company's credit report. This is why it is imperative to correct all three credit bureaus (Equifax, Experian, and TransUnion). Here is some positive news, anytime that you are denied credit, you have the right to know why you were turned down. If the bank or store used a credit reporting agency to make their decision, they must provide you with the name and address of the agency that supplied them with the credit report. Once you have the contact information of the agency involved, you should make it a priority to fix any inaccurate information on that report. Don’t be afraid to demand an explanation where you feel the agency is wrong. If there is any information in the report that is not true, point it out politely via phone, and have it investigated by the agency. Once the agency corrects any errors, you then have the right to demand corrected copies of your credit report.
Lots of people have been denied loans, credit cards, or other forms of credit because of inaccurate information lenders find on their credit report. Before a bank (or any other financial institution) grants your application for a loan they will want to find out about your credit history by requesting a copy of your credit report.
As we have already covered, your credit report is a compilation of your credit history, past financial transactions, and your personal information. This report is usually compiled by one of three accredited agencies known commonly as credit reporting agencies. In the United States there are three major credit bureaus, Experian, Equifax, and TransUnion. Credit reporting agencies are corporations that help credit card companies, loan companies, banks, and department stores ascertain the credit worthiness of their customers. The credit reporting agency will provide the lending companies all your information so that the lender can see who is a good credit risk and who is not. The credit reporting agencies receive most of their information from loan companies, credit card companies, banks, and other lending sources. In the report to the credit reporting agency will be information such as your occupation, place of employment, residence records, judgement and arrest records, income status, plus the details on any payments (past and present). Once the reporting agencies have all the detailed information from the lending sources, they give that information out to any organization in need of a credit score (when it is requested of course). They keep information on file concerning you and your credit, but they don’t make any final judgments as to your credit worthiness. The decision of whether or not you receive credit is up to the credit card company or lender you are dealing with. This "credit score" is used by banks, credit card companies, and other financial companies to determine your credit worthiness. Most lenders often based their credit limits and rates on information in your credit report. Some employers often consider information on your credit report before they employ you as well. If you have severe financial problems, some will find it difficult to employ you. Whenever you apply for new credit card, loan, or other form of credit, lenders will base their acceptance or rejection of your application on your personal credit report. If your credit report shows you’ve been reliable in the past, then you will most likely get the credit card or loan you are applying for. However, if you have defaulted on a particular account, or you were constantly late in making payments, it will most likely get your application denied. When compiling your report, the agency itself or a financial institution that’s giving them the information may make a mistake and give inaccurate information about you or your credit. If you do not dispute this error and demand the necessary changes, then the error will get left on your report. You can imagine the possible effects that inaccurate information can have in the future. Because of this very fact, it’s vitally important that you check your reports at least once a year. In order to check your report for any possible inaccurate information, you have to request a copy of your credit report. You can get a free copy of this report from each credit bureau because it’s your credit file and you have the right to know what is in your report. Free credit reports can be found at anuualcreditreport.com. |
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