Tips for Choosing the Right Credit Repair Company

by admin on May 15, 2012

When you need to fix your credit, knowing the difference between legitimate credit repair companies and scams can help you save your time, money, and most important, your credit rating.

Say you’ve just obtained a copy of your credit report.  You open it only to discover you don’t have a clue what’s going on in there.  Not only is your score lower than you thought it was but the report itself is filled with terms and acronyms that make little to no sense at all.  It’s like they deliberately try to make things as complex as possible, presenting a riddle with absolutely no clues to help you solve it.

So where are you to turn?  Well, the obvious answer is one of those credit repair services you keep seeing online.  But there’s so many of them, and a lot of them are just scams anyway, right?  How do you keep up with the people who say they’re trying to help you back up?  In short, how can you tell the good from the bad (and the ugly)?

You’re gonna like the way your credit looks – I guarantee it!

Just about every other credit repair service you come across on a Google search promises to wipe out all of your bad credit at the drop of a dime.  No one can guarantee you results when it comes to credit repair, no matter what a bunch of dots on a map or front page testimonials may say.  Just because they all claim to be the #1-rated company in the business doesn’t mean they really are.

And while most reputable companies won’t make this claim, anyone saying they can completely wipe out your bad credit in a matter of days is outright lying.  Credit repair can take months to work through, not days or even hours.  Stay away from anyone who makes any promises beyond what they can legally accomplish.

Just sweep it under the rug

Another general rule of thumb when it comes to dealing with credit repair services is to gauge the emphasis they put on dispute letters.  Unless you keep meticulous records, chances are a couple of items on your report won’t look familiar at all, so a credit repair company may be quick to suggest this as your first order of business for fixing your credit.

What some may not tell you though, is that just disputing your trade lines is hardly the best way to repairing your credit.  The credit bureaus may take some of these accounts off your report, but they could show up again in a few months time, and you’ll be right back to where you started.  Except this time, your wallet may a bit lighter from those monthly fees the credit repair companies are hitting you with.

You’ll want to find a service that attempts to validate any outstanding credit or collection accounts with the creditor if you’re unsure of the account’s accuracy on your report, not one that automatically hits the big red DISPUTE button at every opportunity, with no thought to the affect it might have on your credit file.

Make ‘em an offer they can’t refuse

A good way to avoid this type of runaround is to familiarize yourself with your state’s SOL (statute of limitations, not the other type of SOL), i.e., how long the original creditor has to collect on a particular account.  Federal SOL is 7 years from the date of last activity on the account.  However, each state’s SOL varies depending on the type of account (oral/written agreements, promissory notes, and open-ended accounts), with some lasting for only 2 years, while others follow you for over 10 years.

So instead of allowing them to randomly send dispute letters to every negative account on your report (sort of like playing darts in the dark) familiarize yourself with your state’s SOL and be prepared to work out payment plans with the creditors themselves.

Going all the way

Finally, while credit repair alone is a great thing to have, there are some companies that offer more than just putting a band aid on your credit history and calling it a day.  Any credit repair company that offers debt relief services is worth looking into as well.  Bad credit doesn’t happen overnight, and it won’t go away the next morning.  Make sure you are able to work out payment plans with both the creditor and the debt settlement specialists so you can work towards reducing negative accounts within your means.

Want some help picking the right service for your specific credit needs?  Check out our detailed credit repair reviews; starting with a detailed review of My Credit Group.

{ 0 comments }

Prepping Your Credit Score for the Golden Years

by admin on December 13, 2011

Retiring with a good credit score can make living out the rest of your days completely carefree, allowing you to tackle larger expenses and loans with relative ease.

If you’ve been slacking on maintaining a good credit rating, however, your retirement may not resemble the golden age you were led to believe it would.  To help prepare your credit for retirement (no matter how close or far you are to punching the time clock one last time), here are a few tips to keep in mind:

Keep the debts down

If you’ve got too many debts, you’re already doing yourself a major disservice on the road to retirement readiness.

Having too much debt on your credit report shows a poor utilization of your debt-to-income ratio, and since how you use your available credit makes up a whopping 30% of your overall credit score, having this blemish show up in your history can make easy-living no easy feat.

Take the time to reduce your spending as much as possible by refocusing the money you once used to fuel your credit card debts into a retirement savings account.

Review your insurance needs

If you know you’re going to need to make changes to any insurance policies you have in your name (such as home, auto, or life), make sure you make the changes while you’re still a part of the workforce.

Remember that insurers give the best rates to consumers with the best credit scores, so get to work on improving your credit scores while you’re still getting a paycheck.

Lower interest rates

Another benefit to keeping the amount of debt you may have down to a minimum is being able to apply for better interest rates on any loans or large purchases you might be making.  Just think about how great it’ll be to be able to take out a loan without paying back twice as much in interest.

Again, the better you’re able to handle your credit utilization ratio, the easier this will be to accomplish.

Don’t stop checking your credit reports

If you’re diligent about checking your credit reports at least once a year, you’ll want to keep at it even after you retire.

You’ll especially want to stay on top of your credit information if you plan to travel a lot, as retirees are at greater risk for fraud and identity theft than the rest of us worker drones.

Want a leg up?  Start preparing for retirement now!

For those of you nowhere near retirement age, but want to start preparing now so you’ll live like a king later, having a good credit score can seriously impact the type of job you’ll be able to land.

Many employers feel that your ability to handle credit also reflects your job performance and how readily you’re able to handle responsibilities financial and otherwise.  Plus, having a higher paying job means you’ll be able to sock more money than usual away for retirement or paying off debts.

Keep these tips in mind whenever your mind starts wandering down the “Where will I be in 10+ years?” path, and you’ll have saved yourself some major financial headaches when you’re ready to kick up your heels on the beach till the sun goes down.

Need some help getting your credit up to par?  Check out our credit repair reviews — starting with a review of My Credit Group.

{ 0 comments }

Why It’s Better to Validate Your Debts

December 1, 2011 Credit Card Debt

People looking for ways to clean up their credit reports sometimes turn to credit repair services because they promise to dispute your bad credit and have it taken care of for you in no time.  What a lot of them don’t realize is that many of these services will simply take your money and dispute [...]

Read the rest

Learning the Difference Between a Good Debt and a Bad One

November 29, 2011 Credit Card Debt

“What does that even mean?” I hear you asking already.  “I thought all debt was considered bad.  You’re telling me debt is a good thing now…?” Well, it is and it isn’t.  Today, I thought we’d touch real briefly on what I mean when I say “good debt” vs. “bad debt.” Bad debt Let’s start [...]

Read the rest

What You Need to Know About Debt Relief Services

November 22, 2011 Debt Settlement

There are advertisements for debt relief just about everywhere.  TV, radio, the newspaper, and even the paid ad on the search engine page I used to research this post.   With the economy still struggling to right itself, most Americans are trying to do the same thing.  Debt relief is one of the ways that consumers [...]

Read the rest

Is Going Online-Only a Good Idea for Your Credit?

November 17, 2011 Credit Repair

More and more consumers are strongly considering switching to paperless billing statements for their monthly credit card and bank statements.  Instead of getting a paper bill in the mail each month, consumers instead would receive emails containing their statements in downloadable files. Some creditors will even send out regular emails containing just the card’s balance [...]

Read the rest

Why You Can’t Just Dispute Everything On Your Credit Report

November 15, 2011 Credit Repair

Your credit profile and scores are serious business.  Your credit follows you around everywhere you go – I like to refer to it as the permanent record your teachers always warned you about I grade school come to life.  You need credit to buy just about anything these days: a home, a car; hell, even [...]

Read the rest

Getting a Loan with Bad Credit

November 10, 2011 Credit Repair

For those of you who realized a little too late that you should’ve paid more attention to your credit card and utility bills when they came in and are now in desperate need of a car or home loan, you’re in luck!  There’s still some hope for you yet! There is?! Yes, you spend-thrifter you, [...]

Read the rest

Do You Get Your Money’s Worth from Debt Protection Plans?

November 3, 2011 Uncategorized

In an effort to help curb consumers’ anxieties over missed payments (or perhaps to capitalize on them), credit card companies started offering debt protection plans, as a way to ensure those card payments are made on time. These plans seem like a great deal for consumers who don’t want to have to worry about missing [...]

Read the rest

Does Your Score Need Credit Repair?

November 1, 2011 Credit Repair

Here’s a pretty startling statistic from FICO, the firm that assigns you your credit score; apparently, over 25% of the US population (or 43 million Americans) currently has a credit score lower than 599. For reference, a score of 599 is pretty bad.  Actually strike that, it’s hella bad.  So bad, you won’t even qualify [...]

Read the rest

← Previous Entries