SolveYourProblem eLearning Series:
Help Me Improve
My Dreadful Credit Score
(
26 pages )
Dealing With Professional Credit
Help
Credit repair is big business, and there are many companies
that will promise to help you get out of bad credit problems.
There are a number of legitimate resources that can help
you in improving your credit score but there are also a
number of less than reputable companies out there that
will take your money but offer you few (if any) valuable
services. A few basic tips will help you see the difference:
Tip #34: Seek professional help.
If
you are in over your head, and your credit is so bad that
you cannot get a loan and may even be facing bankruptcy,
you may want to seek help from professionals. There are a
number of financial professionals that can help you with
credit repair:
Bankruptcy
lawyers and bankruptcy advisors: Bankruptcy lawyers can help
represent you in bankruptcy proceedings. Advisors can help
you decide whether to apply for a bankruptcy and how to proceed
once you do decide to file.
While
getting a bankruptcy lawyer and filing for bankruptcy can
be upsetting and can dramatically affect your credit score
for many years, it can also give you a chance to start over
financially and can help you reestablish good credit again
in the long run.
Credit
repair companies and credit counseling companies: These companies
can help you by acting on your behalf with credit companies,
by advising you on what you can do to repay your bills faster,
and by helping you make better financial decisions.
Accountants
and tax services: Accountants and tax filing services can
help you make the most of your money by making sure that
you do not end up overspending on taxes.
Bankers
and bank officers: Most banks today want to not only help
you keep your money but are willing to work with you to make
the most of it. As a banking service, many banks today offer
free investing advice, saving advice, and personalized meetings
with bank officers that can help you figure out your money
situation.
Lenders and bad credit lenders: How you deal with lenders will
determine how well your credit score works. Avoiding too many
inquiries by not applying for too many loans, establishing
long-term business relationships with bankers, and doing business
with bankers in an organized and professional way (i.e. paying
your debts on time) will go a long way towards giving you a
credit rating. In turn, a good credit rating will make it easier
to deal with lenders.
Tip #35: Look out for credit repair
companies.
Many
companies out there advertise that they can help you with
credit repair, but the quality of these services - not to
mention what they offer - varies widely. Some companies really
can help you with credit repair while others are actually
under investigation for suspect business practices. If you
decide to seek help from a credit repair company, be sure
that the company is legitimate and offers you viable services.
In
general, you should be looking for non-profit credit counseling
services rather than credit repair companies (some of which
are really just lenders offering home equity loans anyway,
which are of limited use to you if you want to improve your
credit).
Check
to make sure that the company has good standing with the
Better Business Bureau and clients who are happy with the
credit repair services they received from the company. Always
read the paperwork carefully before you sign and make sure
that you understand how much you are paying for and how much
you are paying.
Before
deciding to seek help from a credit help or credit counseling
service, be sure that the problem cannot be resolved on your
own. Indications that you may need credit counseling include:
-You
cannot pay your bills and avoid the necessities of life.
-You
avoid the phone, the mail, and the door because you are being
harassed by collection agencies.
-You
have avoided going out because you feel terrible about your
financial state.
-You
have no idea how you will repay your bills and loans - you
do not know where to start.
Tip #36: Seek free or inexpensive help
before seeking paid credit repair help.
If
you need credit repair, odds are good that your finances
aren’t in the best possible shape. That likely means that
you should attempt to spend as little as possible on credit
repair - the money you save can be channeled into repaying
your debts. Before seeking credit repair services, follow
the tips in this guide in order to repair your own credit.
Also,
seek out free or inexpensive sources of credit repair help.
Some non-profit credit counseling services are actually registered
charities and will work on your behalf. If you can get help
from one of these companies or undertake credit repair yourself,
you will be able to save money quite easily.
In
addition, these companies tend to be more legitimate than
credit repair companies that take your money, anyway.
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