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Credit Repair Tips

Free Credit Repair: You Can Do It Yourself

Are you looking for information on credit repair and self help?  How much help do you need when you are looking for credit free repair?  Before you answer that question consider three ways to “fix” credit. 

The first way is rather obvious.  You pay off all of your debts and thus are given more credit to spend.  This is problematic for some because money is often times scarce and interest charges can be predatory.  The second way to pursue credit free repair is by negotiating with creditors for a lower price than what is stated on file.  You the consumer may perform this, or you may get help from a debt relief agency or by a debt relief lawyer. 

Is there any difference between the three?  A debt relief lawyer would have experience in this situation so might be more knowledgeable in his negotiating strategy.  Debt relief agencies may refer you to an attorney or have their own financial specialist help you on a case.  However, you must beware of some debt relief companies that are actually scam operations.  The usual model of a legitimate debt relief agency allows the debt-ridden consumer to refinance through the company.  In turn, the company negotiates with the many creditors to create a consolidated balance.  However, scam operations may simply offer to negotiate balances and not actually do anything—all the while requesting more money.

The third type of credit repair service is even more concerning—some companies will offer to create a new credit file, or a new credit identity, so you can wipe the “slate” clean and start over.  This is an absurd promise, and you should hope it’s a scam.  Otherwise, you may be committing a crime.  There is no way to fix a repair file other than to satisfy your creditors.  The credit bureau merely reports on what financial transactions have been taking place.  The individual creditors have the most power to remove an item.  Only by legal dispute can a credit bureau remove items from a credit file.  This can only be done after a thorough investigation into the matter.  If you want to dispute charges, be sure to provide as much evidence in your favor as possible.

If you want to repair your credit it’s time to start analyzing your credit history.  You can do this by requesting a free copy of your file from any or all of the big credit agencies, Experian, Equifax and TransUnion.  You are legally entitled to one free review every 12 months, as well as unlimited access through one of the commercial providers.

You may also want to check out our tips at: 3 Things You Can Do Now To Improve Your Credit Score.