Imagine waking up every morning without the burden of financial hardship or a poor credit situation.
As you sip on your morning coffee, you’d be relaxed knowing that if you were faced with an emergency, you could get your hands on the money you needed.
Trouble is, according to CNN Money 76% of Americans life paycheck to paycheck – which is why having a credit history is so critically important.
If you have decided to repair your credit rating, you’ve made a wise decision.
Bear in mind, it will take a bit of time and persistence to get yourself back on track – however the peace of mind you’ll gain will be well worth the effort.
Here are a few tips to get you started:
1. Find a Reputable Credit Counselor to Help You:
Credit repair can be a complicated process. Professional counselors can give you the advice you need, and help you create a repair plan that is best suited for your unique situation. Look for companies that provide a money back warranty, full customer support, as well as 24/7 online access to a portal that tracks your credit repair process.
2. Avoid Companies That Use Templates and Form Letters:
Credit bureaus receive hundred if not thousands of dispute letters every day. To manage this volume, they rely on an automated letter sorter that earmarks form letters and marks them with a lower priority. Select a company willing to customize your letter so you get faster, more efficient results.
3. Start Building a Good History of New Credit Accounts:
An effective strategy to boost your credit score is to open new lines of credit. New credit accounts will impact your credit score by as much as 30%. It’s best to select a company with a close connection to creditors. That way it will be easier for you to gain approval for new credit accounts even if you have a low credit score or poor credit history.
4. Become Knowledgeable About the Way Credit Works:
Credit repair can be a long and tedious process. It’s best to deal with a company who is willing to explain and educate you about the credit process. The more knowledge you have the easier it will be to avoid the same credit pitfalls in the future. Select credit repair companies with a high rate of success: Far too many credit repair companies simply send out form letters and take your money.
5. Ask For a Professional Contract:
Legitimate credit repair companies will provide you with an agreement or contract.
Be sure that your contract covers all of the information that you have been told verbally. Take the time to read all of the fine print, and don’t move forward unless the terms of the agreement are clearly stated in writing. When interviewing companies remember to ask them about their “deletion rate.” The deletion rate is the percentage of negative accounts that are typically removed from a client’s profile. It will give you a good idea as to how effective their methods are.
6. Make sure electronic payments are available to track your investment:
Never pay with cash or deposit service fees into an account. Professional companies create a paper trail. They will accept credit cards or online payments that can be verified after the fact. You don’t necessarily have to meet face to face because most credit repair companies are set up to handle business virtually, but make sure that the company you deal with doesn’t ask you for unusual requests.
In a nutshell, there are several credit repair companies to choose from, some are good, some are not. It’s always in your best interest to review their credentials and verify their success.