Credit Repair - Do It Yourself

It's often way too easy to get yourself trapped into a corner of mounting debt, especially today when the nation is getting an overload of doom and disaster news. Just remember that everyone's situation is unique so get control and look at your personal circumstance.

Be smart and educated about your finances because there are a lot of "wolves" disguised as Credit Repair Specialists who would be all too happy to help you repair your credit  – and would start first by helping themselves to somebig fat fees.

We've warned you several times – and yet people continue to get mislead into the false claims of credit repair. Remember, no one can erase your bad credit, clear your bankruptcy, and remove judgments' or liens and such from your credit report.It's a scam and that is a guarantee.

Truthfully, there are simple things you can do yourself to help repair your credit.

• First – get a regular check-up by reviewing your credit report at least once every six months. Human error is always probable, numbers can get reversed and names can get misspelled. Be sure your credit report accurately reflects your accounts and known balances. Look at your social security number and other information located in the personal profile section. This is especially critical for college students who depend on grants or student loans where there is a greater chance of becoming of a victim of identity theft.
• Second - If you see any errors – call to dispute the information and follow up with written correspondence. Always get the persons first and last name; their ID number or a confirmation number to document your dispute.
• Third – don't follow anyone's bad advice to get a new credit profile by applying for a Tax Identification Number or to dispute information that you know to be accurate. You can be fined or worse yet prosecuted for fraud.
• Fourth - It's free to dispute any information that is not correct or outdated. The credit reporting agency has 30 days to notify the retailer, bank or company responsible for reporting the credit. At the end of 30 days there should be a written response back to you with their outcome – if there was an error it should be corrected to all three credit agencies. Ask for a final report to ensure everything has been accurately updated; you also have a right to ask the credit agency to send a corrected report and letter of explanation to any prior inquires on your report from the last six months – that would include employer inquires.
• Fifth - take advantage of the personal statement section that can be posted to your credit report, briefly explain serious disadvantages or situations that led to a specific credit crisis. Obviously if you've had a crisis every year of your life because you dislike paying bills, you're lazy or you ate your way through your bill money at fast food stores – then this section won't be useful. It's time for you to get serious and follow a plan.

As a general rule - negative credit can stay on your report for 7 years which begins on the first day of the delinquency; bankruptcies will be reported for 10 years and a judgement can be reported for 7 years or until the Statue of limitations expires. Employment application responses are generally noted for jobs paying more than $75,000 per year.

Judgement-a legal ruling from the court making you responsible to pay a debt. Statue of Limitations – legally sets the amount of time you can be held responsible.

Most often, we have the power to control our own situation, you know yourself better than anyone – and probably already know if you are spending outside of your means. Your name is the most important asset you have – it labels your character, controls your ability to purchase a home or even to get a job.

Try imaging that Credit Scores represent standing in a large line just to buy something like a car, a house, furniture, vacations, or even to get a job. Your personal credit score will determine which line you have to stand in so - if you pay your bills on time, don't have large amounts of credit card debt and don't spend outside of your monthly income then you can get a fast past and never have to wait in line. If the reverse is true about your spending habits – then you'll be placed at the end of the line, which wraps around the block several times and worse yet you have to stand in the hot sun most of the time.

Get yourself on a budget and find someone you trust to be accountable to – this person can help monitor your spending by reviewing the purchase with you – if we are honest with ourselves most of our purchases were never necessary, undesired in the end or just plain foolish. Everyone get's tempted so everyone should have someone to be held accountable of their actions.

If a serious illness or job loss has caused your financial crisis – then find a credit counselor from a local community center or contact the credit agency closest to you. Avoid running away or ignoring telephone calls from your mortgage company, bank or other creditor. Visit with your local banker and advise them of the situation – perhaps there are loan modifications or debt consolidations you can try to find.

Lastly, get a copy of the last credit card statement you received and check the terms. Chances are you were hit with a higher interest, your payment terms have changed or you are now responsible for large fees and penalties that you never knew about before. These are the credit card companies' solution to make up for lost revenue from rent government changes and write-offs.

No one really needs more than one major credit card for emergencies – and if you do charge something be prepared to pay it off at the end of the month.

Remember – that sales price that was such a "hot smoking deal " is completely lost if you purchased something you will be paying for the next 6 to 9 months on your credit card.