Credit, a subject that is so pivotal, yet one which we avoid to have a candid dialogue on. Is it
that we are ashamed of it or the fact that it tells of our flawed financial discipline to the
world? What about the stinging note that, if you don’t take good care of your credit, then your
credit won’t take good care of you.
Credit repair translates to a number of actions towards restoring an individuals or entities
credit score from a poor level to a good level. A poor credit score adversely affects one’s
ability to get credit and even access such credit at good rates. To remedy these scenarios,
credit repair services have taken on the challenge of investigating credit reports from credit
bureaus in order to affect credit repairs. While individuals can investigate their own credit
reports, the task has become increasingly tedious leading to the emergence of companies that
solely work to repair individuals credit scores.
So, what does credit repair fully entail? While the investigative aspect of credit repair is
the most known, restructuring of debts and sound financial planning are also other forms of
credit repair. On the investigative side, credit repair agencies or individuals look out for
untrue or incorrect entries in their credit reports provided by credit bureaus. Credit reports
from credit bureaus are free of charge. This is followed by disputing the untrue or incorrect
entries where the affected party personally files a dispute on the specific entries of concern.
The effect of it being that the rectification of the untrue or incorrect entries positively affects
the credit score of an individual by increasing their credit score.
On the other end, debt restructuring and financial budgeting involves one taking a step
towards renegotiating payments of their current debt to considerate or favourable terms so as
to avoid defaulting. This goes on to ensure that one is not listed as a credit risk thus lowering their credit score. Financial budgeting, as another form of credit repair, translates to
improving financial capability and reducing the amount of credit one takes. You learn how to
allocate more of your available finances towards lowering your debts and therefore
improving your credit score. This, as a form of credit repair, positively affects the payment
history of an individual, therefore positively affecting their credit score.
In effectively dealing with credit repair, you will be required to make a recurring payment in
order to have a company assist you. While an individual can work on repairing their credit by
themselves, it’s noteworthy to highlight that it’s labour intensive and it is a process that
involves continuous research. Taking into consideration the effect a poor credit score can
have on your future plans, it’s apparent that investing in credit repair services is a financially
sound investment in your future.
In a nutshell, are you taking care of your credit so that it can take care of you? While the
process is one that does not bring results overnight, it is important to note that simple
practises like paying your debts on time will in turn positively affect your credit score
overtime. So, what are you doing about your future, and how is your credit score?