FAQ
Frequently Asked Credit Repair Questions
* What is Credit?
* Why is the need of repairing credit?
* Will lenders help me repairing my liability?
* Will it be fair to go for a commercial credit repair company?
* What kind of help do I get from Consumer Credit Counseling service?
* What do Credit Bureaus do?
* How do I get my credit report?
* What to do after getting my credit report?
What is Credit?
“Credit” simply means financial trustworthiness. When you borrow money from any financial institution or apply for a loan, mortgage or credit card, you need to prove sound financial credit status. Many loan providers will be keen to provide you with better terms with lower interest rates to those with good credit ratings. So building a sound credit record is of utmost importance.
The Credit Repair process includes two steps:
* At first procure your credit report from credit bureaus or rating agencies
* Take necessary steps against any errors, omissions, misinformation, misreporting or misinterpretation, if any.
* Start disputing those errors and omission to make sure that it does not distort your financial status.
Why is the need of repairing credit?
Your credit record will substantially influence whether you are qualified for availing any credit facilities in the future. A sound credit score or rating will ensure you with low interest rates and long term loans for various purposes like home loans or car loans. Loan companies may charge high interest rates or may impose unnecessary repayment plans for you. So considering the stakes and the consequences involved, it is advisable to you to understand the importance of repairing bad credit rating.
Will lenders help me repairing my liability?
If anyone is unable to make at least the minimum payment on outstanding accounts, the first option may definitely be to approach your lender and negotiate with them. Lenders may appreciate your willingness to pay and may help in setting up a suitable plan for repayment for you. In cases of late payment by you, you can enter into a deal with them and they may agree to wipe off your late payment status (though it is not legally acceptable) from your credit report.
Will it be fair to go for a commercial credit repair company?
Credit Repair companies are basically staffed with trained individuals in the credit field. They will undertake the credit repair process and claim fee for it. You need to understand that each and every process go with the relevant statutory rules and obligations and no one can legally remove accurate and negative information from your credit report. Law offices allow you to make a request for reinvestigation of inaccurate or incomplete information in your credit report and the service is totally free. Everything a credit repair agency will do can be done by yourself at little or no cost.
What kind of help do I get from Consumer Credit Counseling service (CCCS)?
Credit counseling agency can make arrangements so that you do not get calls from the collection agency or lender. They can help you avoid bankruptcy, reduce your interest rates, wipe out late fess, lower your monthly payment, make a suitable debt management plan for you after analyzing your financial status and affordability. Make yourself clear that they can’t remove true negative comments or information from your credit report.
What do Credit Bureaus do?
Credit Bureaus are companies that maintain your credit histories. They have huge database comprising records of consumer credit histories. Creditors, banks, mortgage companies and other financial institution report this credit information to the credit bureaus which are then compiled into a credit report. A credit report indicates in details of how you have managed your credit in the past so that lender companies can evaluate your financial status. Typically they provide the following information:
* Your open accounts.
* Credit limits.
* Current balances.
* Number of late payments.
* Action taken during collection.
* Tax liens
* Whether you own your own home.
How do I get my credit report?
You can contact any of the following credit bureaus and request them to send you your credit report.
* Experian
* Equifax
* TransUnion
* Corelogic
* Chexsystems
What to do after getting my credit report?
It is advisable to go through your credit report thoroughly and check for any negative information printed therein. If you find any error or omission, dispute them directly with the credit bureau. You have the right to challenge the accuracy of the credit report and to eliminate those false items. Credit Bureaus are required to investigate the items as soon as possible. If they find any inaccuracy in the report for which they can be held responsible, they need to remove it from your credit file. If you find more than one error in items, it is advisable to deal with each item one at a time.