Credit Repair - How To Eliminate Charge Offs And Boost Your Fico Score
Circumstances faced by many have led to the need for credit repair
. A great many of us have been irresponsible toward our debt payments; especially credit card debt. All debts are governed by a billing cycle according to which the bills are generated and sent to the customer to make a payment. The customers, according to their paying capacity, tend to go ahead and make the payment to the credit giving company. There are many who cannot afford the payment and they do not make any payment at all. The company tends to charge them with late fee and penalty interest charges and send them a bill again next month. This process goes on for a period of 6 months in which the company charges a loss to their books of accounts and the account moves into recovery.
Usually the companies at this point of time tend to sell off their debt to a collection agency which calls up the customer for payments. This has a negative impact on the credit score of the customer. The customer is asked to make the due payment to the collection agency. The money once paid in full from the customer's account normalizes his standing and the credit score becomes good.
However, if a customer cannot pay back in full, he needs to go for a settlement or consolidation. In this case the customer pays back the credit giving body in a certain period of time. Settlement or consolidation further brings down the score of the customer leading to the need of credit repair. However, since the customer has paid the amount he can request the lending agency to hold back the negative comments.
Many people are unaware that the credit report can be used as a tool to erase bad credit. This can result in a boost to your score by a possible 200 points. Many negative items found on credit reports are disputable and can be removed legally to erase bad credit. Click the following link for free information on safe and legal ways to repair your credit: