It’s Not As Hard As You Think!

People are in debt. Living in this world with bad credit can be difficult. It’s hard to repair your credit and it makes life difficult to have bad credit when you are making those large purchases. Credit repair can be done, but not overnight. You must be patient and keep your spending in check. There are a few things that you can do to repair your damaged credit but you must be patient as you follow these steps. Budgeting your income is the first step for healthy credit. You need to figure out your spending habits.

When you review them, you will see what extra income is going to waste. Suggestible items to cut back are cigarettes, coffees, and fast food. In order to get your credit back in good standing, some sacrifice should be made. First, get a credit report. The three major credit agencies are Equifax, Experian, and Trans Union. This will help to see what you owe and who you owe it to. There are plenty of online website that can help you with this. The next step is contacting the creditors.

I know this is something that is somewhat dreadful, but it must be done. You need to enter payment arrangements and schedule promise to pays with your lenders. This is the first step in the right direction. Any promise to pay or payment arrangement should be in writing. Sometimes, if you offer to pay off the full amount, they will let you pay off the amount at a discount. It’s time to cut the cord, er cards.

It may feel painful at first, but it soon will be liberating. When you get rid of your credit cards, be sure to pay off and close the accounts. Credit history is important for your FICO score. It’s a good idea to keep two or three lines of credit opened up so you can keep your established credit history.

You must make all your payments on time and avoid bankruptcy. It’s a good idea to join a credit union as well. They offer a better chance of giving you a consolidation loan if you want to go that route. The author is currently researching Home Wine Making methods and recipes, as well as the hobby of Family Tree Searches for upcoming review articles.

Filing for a bankruptcy should be your last resort. Do it only if you are badly in debt and have many black marks on your credit. When you file for bankruptcy, you could lose 200 points. This would affect the credit score if you have a score above 650. However, if you have multiple delinquencies and lapses in your credit report and if you have score below 620, it would not affect you much.

When you file for bankruptcy, the credit score will fall below 620 and obtaining credit with a favorable rate would become difficult. In short, the credit would become more expensive. You would also need to understand, the credit report becomes blemished for next ten years. Do not hesitate to meet a good and reputed credit counselor once you know you have a poor credit score and you are not in a financial position to repair it.

Remember, if a credit counselor asks you to file for a bankruptcy, take time out to cross-check with another credit counselor. Many of the profit-making agencies would be keen on filing for bankruptcy than on helping you to apply for debt consolidation loan. To sum up, take into consideration the points given above while trying to improve your credit score. Credit score can be improved if you are organized and disciplined enough to follow a stringent repayment plan.

Before the credit repair company can perform any services for you, you must be given a contract, you must sign the contract, and the 3-business day cancellation period must expire. You have the right to cancel a signed contract within 3 business days. The organization cannot charge you a fee for this cancellation as long as it’s made within the specified time frame.



Your contract should include a Notice of Cancellation form that you can fill out and return to cancel the contract. The credit repair organization can’t ask you to sign any kind of form waiving your rights under the CROA. Any waiver you sign is considered void and cannot be enforced by federal or state. Organizations that violate the law can be sued for actual damages, punitive damages, and attorney’s fees. You can report violations to the Consumer Financial Protection Bureau, your state attorney general, and file suit in your state.