Credit Repair Decoded

The average consumer has unresolved debt and poor credit. As prevalent as the problem is, credit resolution and repair is a subject most do not want to approach. Many factors have added to empowering this evasive mind set. One of them is that the credit industry and the legal legislation has successfully created an overly complicated system that overwhelms and intimidates the average consumer. Many consumers have resolved to hiring lawyers or credit repair specialists to help resolve their credit problems. These avenues are costly and the risk of hiring a scam artist is an increasing reality.

How did we get here? The problem is consumer ignorance. Over the years, consumers have allowed credit to run, regulate, and control their lives. When the economy boomed, banks irresponsibly flooded the consumer markets with credit cards and lines of credit. Getting a open line of unsecured credit was as easy as buying candy at the dollar store. Banking institutions flooded consumer mailboxes with marketing literature that promised alluring lifestyles with a swipe of card. Fast forward 30 years, the result of the careless lending is now bearing its fruit.

There is hope. Just as ignorance (intentional or unintentional) has led this industry into the deep ruins of economic upheaval, information and understanding on how to apply the information will dig this nation of the dirt.

A damaged credit report can be restored. The process will take time effort. Just as it took time and effort to get into the mess, getting out of the mess will also require time and effort. This blog will outline the credit repair process that is available to all individuals at any level of credit disarray.

Credit repair is the process that a consumer (the individual or the representative that the individual retains to represent them (credit repair company or law office) takes to improve their credit score with the three credit bureaus. The Federal Trade Commission (FTC) has reliable information on credit repair.

It is important to understand that any thing that a credit repair company offers, every individual can do on their own for little or no cost.

The credit repair process consists of:

• obtaining a credit report from the three credit bureaus for free.
• reviewing the credit report and identifying any inaccuracies or outdated information to dispute.
• writing letters of dispute to the credit bureaus
• Once an item is changed or deleted, the credit bureau cannot put that information back on the credit report.
• The credit bureau must provide a notice that details the name, address, and phone number of the entity that reported the item on the credit report.
• The consumer can request the credit bureaus to send notices of the corrections/changes to credit report inquirers (within 6 months).
• The consumer can request that the credit bureau send a corrected report copy to anyone for employment purposes (within the past two years).

While the credit repair is in process, it is also important to become educated in managing finances in order to stay out of the credit mess. Build a realistic budget and stick to it. Consult with financial planners to learn about all viable investment vehicles. Understand that credit is money. If more is spent on credit cards than is available to pay them off, a deficit occurs and the vicious cycle begins again.

Many valuable resources are available online. Research today for freedom tomorrow.

Make it a goal to be debt free and stay debt free.