Author: Richard BraddonParsons Added: March 28, 2010
Some people think that gaining a clean credit report is difficult and costly process. Luckily these are just popular fallacies, but they're only a few of the myths circulating about credit repair. The Federal Fair Credit Reporting Act was passed in 1971 to protect consumers. However it's not rocket science to figure out that the credit reporting agencies are in business to make a profit and if they have to spend time and effort to investigate a dispute, they are losing some of that profit. This leaves very little incentive for them to assist you in your credit repair process. You may well ask, "Why should I care about having a clean credit report?" The questions to ponder are; Do you want to get your loan? Do you want the best possible rates for your loan? Is getting the lowest possible loan fees important to you? There are plenty more very good reasons why you should have a clean credit report but these ones give you the general idea. The average American citizen has a credit score of 677. If your credit score is below 677, cleaning up your credit report could mean the difference between getting approval for your loan, and being turned down. If your loan is turned down then that credit enquiry can have a negative effect on your credit rating, lowering your credit score even further. If you were able to obtain a clean credit report and achieve a credit score of 720, then based on the average American's financial position you could save around $5,000 a year in payments! What would you do with an extra (tax free) $5,000 a year? Despite what the credit reporting agencies want us to think, it is possible to repair our credit. It just depends on the time and money you want to invest to complete this task. One approach is to just wait for it to go away by itself. This is not a good option because it can take 7-10 years, sometimes never! Another strategy is to hire a law firm to assist you with this. Unfortunately this is usually the most costly method. Another approach is to use software packages to assist you with this task. For a small initial outlay, they will direct you through the process so you remain in control of what's going on at each stage. No matter which method you choose, you will need to do a bit of legwork to obtain your clean credit report. E.g. If using a lawyer, you still play a large role in the process, copying letters and forwarding them to the lawyers etc. - yet you're the one paying someone else to do this for you. If lawyers are able to remove even a single negative item from your report they consider it a successful exercise. If you choose a self-directed software package, you still have a significant role to play, however given it is not much larger than what you'd be doing with the lawyers, and it is almost certainly going to be cheaper, quicker and more effective as e.g. you don't have to re-post letters to lawyers at every stage of the process. So would you prefer to do a bit of work on your own with better results for your credit score, or pay a legal firm by the month and risk ending up getting just one item removed? Before choosing your method to get your clean credit report, do your research and find which method will be most effective for you. If you shoot for a credit score of 720, you will receive the best rates from lenders and with a higher credit score you will save money on a monthly basis. With so many great reasons to clean your credit report, what are you waiting for? Start cleaning up that credit score and enjoying having your loans approved - and at all the best rates!
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