Thursday, July 8, 2010

You Have the Power to Fix Your Own Credit

Everywhere you turn, you will see offers from others to "fix your credit." There will be debt consolidation services, credit debt lawyers that promises to create a "new credit report" so you can start from scratch. We're not saying they are 100% scams, but we are saying that is money that you do not have to spend! You have the power to fix your own credit report.

What is required from you is that you check your credit on a regular basis. The government only guarantees you one free credit check per year. In order to get full access to your file, you may need to subscribe to a credit-reporting agency's services. The best you can do is to purchase a credit repair kit so you can get help with the technical requirements (letter drafting, and so on). However, when it comes down to communicating with the credit bureaus, the process is rather simple.

You write a letter to the bureau or bureaus that are listing the erroneous information. You provide your evidence (always send copies) and explain the situation in a letter. You request an investigation into the matter and the bureau opens a disputes case. They report back when the case is closed, whether in your favor or not. The good news is that even if the case doesn't close in your favor, you can still include a letter in your credit report explaining your side of the story.

Now you must take steps to repair your bad credit history. No one else can do this for you, regardless of any sensational offers made. Debt consolidation services do the same thing you have the power to do—they negotiate a payoff balance. (Even if they do get a payoff balance, they will charge you for their services, which defeats the whole purpose of "savings") A credit debt lawyer can only help you in reducing the volume of creditor harassment. As for software that promises to create a new credit profile, this action would be illegal!

Instead of letting others help you for a fee, help yourself to crawl out of debt and earn your way back to a favorable credit score. Create a budget that you can work with and then start analyzing your credit report. It all begins with you!

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