How Do I Repair My Credit Rating

How Do I Repair My Credit Rating

Repair your Credit Rating With a Secured Credit Card

To Repair Your Credit with Credit Cards, obtaining a Secured Credit Card is a good option. Secured credit card is targeted specifically to people with Bad Credit. When applying for a secured credit card, you are required to place with the secure credit card issuer an initial deposit equal to the amount of your credit limit; that is, you will have A Credit limit of $1,000 if you place a deposit of $1,000. The issuer has the right to deduct from your deposit any outstanding balance on your card statement that you fail to pay on time. This plan thus benefits both you and the issuer; in other words the issuer carries no risk thanks to your initial deposit, and you will not fall into your old habit of being behind on or failing to make payment,

Once you have received your secured credit card, you must start practicing good money management habits in order To Repair Your Credit. Use the card but use it sparingly, and also make sure you pay on time. By doing so, you are demonstrating to your creditors that you can be trusted and are responsible, and in this way you will slowly repair your credit.

If you do not take any steps towards Credit Repair, the Credit Reporting agency will negatively mark your Credit Report for seven years, so that you will not be able to get any credit or loan for all those years. By taking a positive step towards credit repair such as by applying for a secured credit card and using it responsibly, you will not have to wait that long to get Good Credit again.

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Does anyone know if Credit Counseling is god or bad?

I inquired about a bunch of different credit repair places and I found one that you send what you can afford monthly and they make payments on several of negative accounts until paid off. Well another credit repair lady called me and said that they work out settlements and get interest rates lowered and that the other place I found would report on my credit that they had to help me and it would present its self like a chapter 13 bankruptcy. I don't understand how that could be possible if what they would be doing is making monthly payments on what I owe and not settling which I know when you settle with a company that shows on credit and looks bad! I am confused. Any insight?

First of all, participation in any credit counseling IS NOT reported on ones credit report (see source) so that lady lied to you!

Second, when they say they will negotiate a settlement, all that means is you will pay less then owed but it will STILL be reported as a derogatory on your credit report. It will show paid in legal settlement and what ever amount was charged off will show on the report. If the amount they "charge off" is $600 or more, then under IRS regulations they must report it to the IRS and to you as now you are required to report it as unearned income on your taxes.

You should read what the FTC has to say regarding credit counseling at this link along with information on what to look out for and what does work.

http://www.ftc.gov/bcp/menus/consumer/credit/debt.shtm

Hope this helps you to decide.

 

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How Do I Repair My Credit Rating

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