Friday, 27 June 2014

Applying For Credit Repair: Action of Credit Repair Agencies

Know your credit score

When you have a low credit score, you can find out methods to improve it. Normally this occurs due to outstanding debts. Credit repair agencies will find out methods to alter wrong information. People with credit scores in the 300 and 350 range will find it hard to get new credit. In addition, people with low credit scores, will have problems landing the correct job. High credit risk remains a minus point as far as reliability goes.

You cannot alter the credit report

True facts will appear in your credit report and you cannot change it. Neither you nor credit repair agencies can do anything about it. If you notice any inaccurate reports or statements then you can get it corrected. Credit repair agencies will remove any inaccuracies in the report by submitting a report to the credit reporting agency. Credit reporting agencies will review credit reports on a regular basis. They will then come across your letter regarding the wrong information. If they find it to be wrong, they will remove it.

You cannot apply for a new credit line

You cannot change your address and ask for a new credit line – it is a felony both federal and state. Many credit repair agents will tell you that you have to apply for a new credit line with a new address. Beware of taking such action – it will land you behind bars.

You can ask
  •        Credit scoring method of lenders
  •        Credit repair contract from credit repair agencies

Lenders give you a credit score when you make purchases using credit. You can ask for their method of calculating credit scores. Each lender will adopt a different method of calculation.

When employing a credit repair agency you are eligible to ask for their method of working and see that they mention their name in their contract. They should mention a time for finishing work. Credit repair agencies must not ask for money before hand.

Things that will work for you
The main thing to know about credit repair is that you can do it but that it will take time. Anything a credit repair agency does for you, you can do it yourself.

Small things like keeping your debts in line and resolving inaccuracies will help you achieve a better credit score. You deplete your credit score when you fail to pay your debts in time. Lenders will mark you as a bad credit risk.

Of the many things you may do, the best thing is to stay in touch with your lenders. They will put in the amount you have run up making purchases from them. If this amount becomes very high then they will submit a bad report. This will cause your credit score to drop down below 500s and 400s.

Keep working on it

Credit repair is tedious but if you work on it, you can achieve good results. By limiting your spending and not applying for new credit, you can bring your credit score up. Also, do not unnecessarily give your money away to credit repair agencies. Always insist on seeing the contract first if you do employ one and check how fast they get the work done. Credit repair agencies must also give a money-back guarantee if they undertake the work.

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