How to Repair Credit the Right Way
If your credit is badly damaged, you may need a professional to teach you better spending habits and to help you put together a plan to repair your credit. There are many credit repair individuals and organizations out there ready to help, but there are also those who prey on people in this tough situation. Let us discuss the right way to get your credit back in shape.
Debt Counseling
Legitimate debt counseling services do not promise quick fixes to wipe out your debt completely. Reputable companies will help you learn how to control your spending and teach you how to work with creditors to establish a repayment plan. Unfortunately, an entire industry of, sometimes illegal, operations exist making outrageous promises. Don’t be fooled by the perception that these credit-repair scams have secret or insider information that will make all of your problems go away. These companies are also known for charging exorbitant fees for their “services.” Some of these operations are actually fronts for bankruptcy lawyers. Bankruptcy is a step to be taken only when all other steps have failed as it can have negative, long-term consequences.
Restoring your Credit Rating
With the right help, time, and determination you can restore your good credit rating. A reputable counselor will recommend a plan something like this:
Pay all of your bills on time according to your repayment plan. This is your first step toward proving that you can be responsible with credit.
Re-establish your credit as soon as possible. A great way to do this is with a secured credit card. A secured credit card has a very low credit limit and requires a deposit that stays with the account until you have proven your credit worthiness.
Eventually, you will be ready for your first large extension of credit, such as a car loan. Responsibly paying back this loan is a significant and perhaps final step toward repairing your credit.
Again, there are no quick fixes to restoring your credit but it is absolutely possible with time and personal responsibility.
Elizabeth Dennis writes for the popular home buying guide, Newbuyer.com. She also regularly contributes to The Cell Plan Guide, a resource for cellular plan news and information and The Hair Removal Surgery Guide.
David Lipman Director, NCBI, NLM, NIH, Bethesda, MD Genbank’s Greatest Hits: A Sampling of Discoveries Slides available: www.ncbi.nlm.nih.gov
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