Credit Repair How To

You have seen the advertisements. "Fix your credit problems overnight!" "Buy our book and in just hours your credit will be fixed!" Many of these publications are like the supermarket tabloids and instant diet plans; they provide a pinch of truth with a dollop of wishful thinking.

Can credit repair be instant and guaranteed? The simple answer is no. There are no instant fixes when it comes to fixing credit. Even if you were to pay off all of your current debts today, it would take at least a month for that action to be reflected on your credit reports.

A little insight into the credit reporting process will help you understand why 24-hour credit repair is not possible. Your credit report is compiled by three, independent companies (Equifax, TransUnion, and Experian). These credit bureaus write up your report based on information they receive about you from companies that gave you credit in the past. This includes your payment history, the length of your credit history, the types of credit you have, and the amounts you still owe.

This all takes time. Assuming that you can, indeed, pay off the balance on all your credit cards today, it takes time for that action to be acknowledged by the credit card companies. For the sake of argument, let’s even say that you paid them with an electronic funds transfer, so they do not have to wait for your checks to clear. It will still take time for them to report this good news to the three credit bureaus.

The credit bureaus then take time to incorporate the new data from your lenders, and compile a new credit report that reflects your current no-debt situation. But, and this is a big but, your credit rating is not just based on your financial situation as of today.

Credit bureaus tend to weigh the financial events of the last 12 or 18 months when they generate your credit rating. The exact length they consider when scoring you depends on your specific history. But still, you have to wait for many months, or maybe even a year or more, before your bad credit reports have passed into credit-bureau history.

So, it is virtually impossible for your credit score to rise within a day after you have bought a book offering a miracle 24-hour cure. How long do you have to wait until you can see some significant improvement in your credit score? Experts say that 3 to 12 months is reasonable amount of time.

There are proven techniques that you can apply to your credit problems that will help speed the healing. But there is no miracle cure. Some diligent work on your part, and some good communication with your lenders, move the process along. And just for the record, let’s be clear: Paying off the balance on all your credit cards at once is NOT a good technique. The credit bureaus will rate you more highly if you actually carry a reasonable amount of debt.

Want to know the Secrets To Raise Your Credit Score up to 249 Points In 90 Days… and Get APPROVED For The CAR, HOME, Business Loans, and CREDIT CARDS You Deserve!

The Credit Secrets Bible will show you how!

Learn More About The Credit Secrets Bible Hard Copy Version With Audio CD

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It is happening all around you. Your next-door-neighbor may have to file for bankruptcy protection. The family across the street is in danger of losing their home to foreclosure by the bank. Your brother-in-law can’t get a decent interest rate on a car loan. But you certainly don’t have any credit problems. Or do you? Here we will spell out three signs that you are in need of credit repair, and provide some solutions that work.

Sign #1 Your credit score. You’ve heard about the importance of credit scores. You knew that everything from the interest rates you pay to your insurance premiums are based on them. But you thought that your credit score was just fine. After all, it is a nice round number, 600.

That is not a good credit score, and is a sure sign that your credit is in need of repair. In fact, any score under 720 could use some improvement. Credit scores range from 300 to a perfect 850. The three major credit bureaus (Experian, Equifax, and TransUnion) collect information about you from the companies that gave you credit in the past, and then write up a report. Your credit score is derived from those reports. The higher your score, the less risk you pose to lenders and the more likely it is that you’ll get their best available interest rates.

Sign #2 Negative items on your credit report. It’s been over a year since you were late with a credit card payment. Certainly, your credit report has improved since then. Just to make sure, you get a copy of your credit report, and those old, late payments are still shown as negative items. Why

If you don’t take action to clean up your credit report, those old negative items will linger for up to 18 months on your credit report. And each negative item will drag down your credit score.

Sign #3 Trouble getting a decent car loan. You’ve just gotten a new job that pays more than you’ve ever made before, but it will require a longer commute than your old car can handle. You’re at the car dealership, ready to close on the new car you deserve (and think you can afford). You’re sitting in that little room with the dealership finance guy, and he’s handing you the pen to sign the new car loan. But wait, those payments are higher than they should be. The reason you are getting socked with a much higher interest rate because of your credit report. Now you’re stuck. You need the new car to make it to your new job, so you sign the loan papers. Ouch!

These are all signs that you are in need of credit repair. A little time and effort spent on cleaning up your credit report will pay off big time. Depending on your abilities and the severity of your credit problems, you should be able to fix the credit repair effort yourself. If not, there are reputable credit restoration companies who will work with you (for a fee).

Be alert for the signs that your credit is in need of repair, take action immediately, and enjoy the financial rewards of a higher credit rating.

Want to know the Secrets To Raise Your Credit Score up to 249 Points In 90 Days… and Get APPROVED For The CAR, HOME, Business Loans, and CREDIT CARDS You Deserve!

The Credit Secrets Bible will show you how!

Learn More About The Credit Secrets Bible Hard Copy Version With Audio CD

If you enjoyed this post, make sure you subscribe to my RSS feed!

Bad Credit? No credit at all? Can’t get a home loan or car loan because your credit score is low? We can help. WantMyCreditBack.com is your complete credit repair resource to fix bad credit and raise your credit score whether you want credit repair self help or a credit repair agency to assist you. Our credit repair product reviews and credit tips will have you well on your way to a higher credit score…fast!

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