Take Credit Repair Into Your Own Hands
If you are looking for a solution to help repair your credit report then you will
find that there are many financial companies more than willing to offer you money. But this will take you further deep into the debt as they require you to put your car or home up against the money they offer.
But borrowing money is not the solution to this problem. Most of the companies are offering a secondary mortgage against your home, and often the interest rates out outrageous.
Most of the companies offer secured loans, but few of them offer unsecured loans. This is not an option for repairing your credit.
Another option you want to avoid is taking out a tax refund loan. This solution will get you fast cash, but the fees for this type of loan are often high.
Another type of loan you want to avoid is the payday loans. Payday loans are loans against your paycheck.
Payday loans require that you write a check for the amount of loan to repay as well as the amount that you will pay the lender for borrowing the money. Pawn Shops are also a bad area to start in building your credit.
Most Pawn Shops will take your merchandise, pay you half in some cases of what it is worth, and give you a certain amount of time to purchase your merchandise back before they sell. Often there are interest rates on the loans provided by the business. It is certainly a way to loose all your belongings and halt you from repairing your credit.
We can also take a look at debt consolidation. Although debt consolidation is much better than bankruptcy, it is not a solution for repairing your credit. Unfortunately most of the debt consolidation companies will charge high interest rates, or high monthly fees to use their services.
The best solution then is if you have a few extra dollars call your creditors directly and see if you can get them to negotiate a monthly installment that meets your expectations. This will provide you the time you need to find a solution for getting extra cash to pay off your debts.
In some instances you can negotiate with your creditors and they may offer a lower amount than you owe so that you can repay the bills.
Most of us believe that by hiring an agency for repairing our bad credit will be faster and easier, but to our surprise it might cost you both more money and longer time. Instead try and fix your own credit by following few simple steps and see the quick results.
Repairing your own credit takes time, and definitely takes patience. You first need to contact the credit reporting agencies in writing requesting your credit report.
You are entitled by Federal Law to a free credit report every year. There are three main credit-reporting agencies that you will need to contact. The bureaus information can be located by running a search on the internet for "Credit Reporting Agencies" or looking through you local phone book. Include the following in your written correspondence with the credit agency.
Written request for a copy of your credit report (You are entitled to one free credit report a year)., include a copy of your state ID, send proof of your current address if it is not current on your ID, list your last known addresses for the past 5 years, include a copy of your social security card, sign the document.
Allow at least 4-6 weeks to receive your credit report(s). If you have already received an annual credit report from an agency and are not entitled to the free yearly report, you may also use any denial letter of credit within 60 days of its receipt. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report.
Once you receive your reports from all of the agencies, review each report for accuracy and differences. Design a spreadsheet or written log to track the differences.
Do not hesitate to make use of disputes or accounts that are invalid. If you find anything on your report that is worth disputing, most agencies allow you to file an official dispute via their website.
Your credit reports should include contact and account information for each creditor.
Organize all of your debt and creditors. Most debts older than 7 years old will or may not appear on your report, if this is the case, leave them alone, do not dig around for them.
Take it upon yourself to contact each creditor to make payment arrangements, most are willing to work with you, some may make your task very difficult. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else.
Expect some creditors to be rude and unwilling to work with you, do not feel discouraged, and just ask to speak with someone else. Offer a settlement amount. Write down details of the conversation as well as the person's contact information every time you speak with a creditor.
It may take up to 6 months to feel like you are making any progress at all on your credit with your payment arrangements but rest assured that your credit will fall into place within a year.
by: Ronald Pedactor
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