Credit Repair Companies and the ECRA

We hear a lot about debt counseling and everyone can agree that it is a good service to utilize in theory. Most credit repair agencies offer debt counseling for free making many consumers question its actual value.  People who hire credit repair agencies feel that they are buying services only to eliminate their debt and may feel they do not need to understand what and how debt is handled or created. Wrong.

Just like a doctor would advice a patient on what has caused them to become ill so they will not get sick again; debt counseling teaches you how to manage your money so you will not fall into trouble with your finances again. It is very important that you understand the why before you can appreciate the solution. You are less likely to abuse your available credit if you understood how the bulk of smaller purchases compounded the large debt you accumulated.

Debt counseling also teaches you how to use your finances to increase your credit score and much more, such as:

-    How to save for an emergency fund
-    How to find the best interest rates
-    How to make and stick to a monthly budget
-    How to find the best health/ home/ auto insurance quotes

… and much more. Debt counseling is a priceless gift – make sure you value it as such.

Source:  When Debt Counseling Is Needed?

This is a question that many people ask themselves without any real hope for an answer – “how do I clean up my credit report?” Do not worry – you are not alone when asking this question, there is a way out for everyone. The trick is to seek out the proper guidance and begin living a financially sounder future with smarter money habits.

Where do you go when you are sick? Where do you go when you want to travel? There are specific places that help you reach a goal or help you resolve certain problems. Similarly, when you are asking how to clean up your financial life the best place to go to is a reputed credit repair agency. These agencies have professionals at their disposal who are experts in the areas of credit repair, credit bureaus and financial management.

Take your troubles to the best in the market and let them steer you on the right path. All you need to do after that is follow their advice to the T and you will be out of trouble in no time.

Source:   How to clean up credit?

Yes, it is. In fact, identifying areas for dispute on a credit report is one of the most important facets of credit repair. Why is this necessary? Think of the errors that creep into your credit report as a leaking bucket. If you do not fix the hole, you will lose precious water and never be able to completely carry a full bucket. Errors on your credit report work in much the same manner because those minor errors are constantly draining your financial potential a little bit at a time.

Any error, no matter how small, needs to be removed from your credit report because the error has the potential to connect with some flaw or mishap and affect your credit score negatively at any time in the future. Also, you will be amazed to see how many times just removing bad entries can boost someones  credit score.

It is not difficult to remove errors, still very few consumers follow through with the process. Some consumers do not follow through just because they hate writing letters, feel intimidated by the process and even more find it difficult to follow up on the status of their letters. Do not worry if disputing credit report entries is not on your favorite ‘to do’ list. Hire a reputed credit repair agency and leave the process to them.

Source:  Is disputing credit report necessary in credit repair?

I have seen many ads for credit repair services and some of them are beyond preposterous. They scream credit repair fraud in capital letters, but even so, people pay attention to them and many even believe them. Some examples are, “We can make your negative entries disappear”, “Guaranteed jump in credit score”, “Bankruptcy can be removed from your credit score” and so on.

Go to a library and review law books regarding financial matters or visit the website of any of the credit bureaus in order to educate yourself on how a credit score is calculated. You need to be informed as to what goes into your credit report and how long those inputs affect the credit score calculations. Stop relying on misinformation. Stop hoping for miracles. Stop inviting trouble.

Once you are aware of the law, it is nearly impossible for you to fall victim to such gimmicks. However, if you still hope against hope that everything they advertise can happen, then you are asking to be cheated out of your hard earned money. Mistakes with finances and your credit score can prove not only to be devastating; but can also be criminal.

Be aware that credit repair fraud happens because you close your eyes to the truth. Repairing your credit legally might be slow – but from a common sense approach- this is the only you should go.

Source:  Credit-repair-fraud-–-are-you-asking-for-it

Most people who have a low credit score feel that they cannot find credit lenders in the market any longer. This is not true. You can. There are plenty of poor score credit lenders out there who make a living by catering to this corner of the market. It is not very difficult to find these lenders either. Here are a few methods that can help you:

1.    Debt counselors – These are the agencies who have answers to all your debt questions, including the “where do I go for credit now?” one. Debt counselors can put you in touch with experienced debt consolidation agencies, credit repair agencies  and poor score credit lenders. Debt counselors are the leaders in guidance when you want to  eliminate your outstanding debts.

2.    The Internet – Use the Internet as your main ally. You will find  answers to many of your debt and credit lender questions with a google or Bing search. With the help of the data on the internet you can figure out which are the lenders that offer the best rates and how best you can negotiate for these rates.

3.    Your old creditors – Most of the time, old creditors are willing to renegotiate your debts so you can pay them off and even reestablish lines of credit with them. Open communication  with previous creditors and show why you need their cooperation in order to get your financial matters in order.

Source:  How do you find poor credit lenders?

The first thing you should know about the different methods available to remove bankruptcy is that they all take time. You cannot remove the mark of bankruptcy before 11 years have passed. However, this does not mean that you should lose hope. Not at all. In fact, many people have enjoyed a great surge in their credit score, post their declaration of bankruptcy, because they chose to live their lives better and more responsibly with regard to finances.

For many, bankruptcy is a dark cloud with a silver lining. The silver lining is not only about trying to remove the debts they have accumulated, but also about having the slate cleaned to start over. Indeed, with patience and care you can start over and do really well by the time your 11 years have passed.

In fact, if you follow a disciplined financial life you can remove the blemish of bankruptcy and rebuild your credit score by the end of this 11 year period.  The lessons you will have learned will not be ones you will soon forget. Use bankruptcy to establish healthier financial habits for your future beyond bankruptcy.

Source:  5 Ways To Remove Bankruptcy

I have been asked this question many times. Why do you need to increase your credit score? The answer is simple- a good credit score offers you the best options in financial matters. You can get a loan, mortgage, credit card and most other benefits even if you have a poor score. So why bother? Here are three of the top reasons why you should worry when your score is low:

1.    Wasting your money – Loans for individuals with low credit scores are available, true. However, these loans come at a price- higher interest rates. This means you actually use more of your hard-earned money in order to pay back the loan. This extra money could be used to purchase something else or put towards retirement savings.

2.    Always under scrutiny – A poor credit score says tells the credit bureaus that the person is someone who cannot handle finances responsibly. This makes creditors wary and you will always be under greater scrutiny. You will also need more collateral and/ or a co-signer when applying for a loan.

3.    You cannot make a mistake – High scorers can skip payments infrequently and be forgiven, but not a consumer with a low credit score. Many creditors panic if a low credit scorer misses a payment or shows any deviation of the repayment terms. In response, the creditor  can alter the terms of your agreement by raising your interest rates.

Source:  Why do you need to increase your credit score?

Have you heard of the Fair Debt Collection Practices Act? This is a law specially designed to protect the rights of people who are lost in debt. Yes, it is wrong to use your credit beyond your capacity of repayment; but even then, consumers still have rights that protect them from undue harassment and pressure tactics from collection agencies.

Are you in debt and lost in a financial maze? Are you suffocated by unpaid bills? Are you hounded and harassed by collection agencies? You can put a stop to these stressful situations by utilizing the help of the Fair Debt Collection Practices Act. Research the Fair Debt Collection Practices Act or go to an attorney and seek help. Not only you will find ways to get relief from the undue harassment from the collection agencies, but you will also find direction and advice on how to seek appropriate help to repay these debts.

Source:  Fair Debt Collection Practices Act Is For Your Protection

Can your credit score be raised quickly? That really depends by what you define as “quickly.” You can fix your credit score with time but the soonest you will see actual results, if you are choosing lawful methods, is about 3-6 months. This is because your credit score reflects your credit history and financial habits. Therefore, you need to create “good” history before it improves and this cannot be done sooner than three months have passed.

Therefore, my sincere advice is never to sign up with any credit repair agency that promises you overnight results. This can not happen. If it does, it is done unlawfully and you definitely do not want to be a part of such dealings. Some credit repair companies dispute all negative entries on the credit reports, which indeed brings the score up almost overnight. However, when the disputes are checked and found to be correct, you will be in worse trouble than when you started. Doing business in this manner may make the debtors reluctant to work with you to find reasonable solutions to your financial troubles.

Be careful that you do not sign up with fraudulent credit repair companies.  Also, be informed about how the credit repair company you choose will actually go about repairing your score. Ultimately, all actions taken on your behalf will become actions presumed to be taken by you. You might be jumping out of the frying pan and into the fire.

Source:  How To Fix Credit Score Quickly

Did you know that credit dispute letters are the best tools to raise your credit score? The first thing you need to do when you want to increase your score is to check for errors on your credit report. You may find plenty of small items that have found their way onto your report and negatively affected your score. When you find items that you disagree with, there is something you can do. At this point in time, you must start writing credit dispute letters.

Do not panic if you are not good at drafting letters and/ or corresponding with credit bureaus. Find a well reputed credit repair agency who will be happy to write the letters for you for a small fee. If you are comfortable with writing, by all means you can do it yourself. Just remember to keep the lines of communication open with the credit bureaus until the errors are removed.

Educate yourself on what needs to be written and how. Be persistent and before you know it- you will be well on your way to a healthier financial future.

Source:  Credit dispute letters – Great Tools to Raise Your Credit Score