It’s important to understand credit repair so you know what to do if it ever happens to you or someone you care about.
Credit repair is as a concept is actually simple: once you learn the mass of relevant industry regulations, you learn how to manage the situation and the associated stress.
That doesn’t mean discarding the intricacies of credit repair – so here are five credit repair secrets that might just offer some guidance should your credit history be frustrating your progress.
Damaging listings on your credit file are there because they were correctly placed or incorrectly placed. Only incorrect listings can be removed.
Unfortunately, credit providers won’t remove accurate information from a credit file. But they will remove inaccurate information, provided you know how to work with them.
Removing incorrect listings is a process that takes weeks, not days. So while a good credit repair agency will move fast, they have to liaise with credit providers – and those providers can be big, bureaucratic organisations that operate at a slower pace.
Creditors may be willing to negotiate. Hence, they might be willing to offer you friendlier payment terms, or even cancel some of their debt. You need to ask.
This sort of informal negotiation spares the credit providers the hassle of chasing someone for money.
Part 9 Debt Agreements involve a formal renegotiation. Again, they usually involve credit providers accepting less money under a new repayment schedule.
This time, though, your name (or your loved one) will be entered on the National Personal Insolvency Index and the agreement will be recorded on their credit file, severely damaging your borrowing prospects for at least five years.
You can solve problems yourself.
You might not realise it, but you can do your own credit repair without engaging an agency. Whilst you might find it complicated, stressful and time-consuming, this route won’t cost you a cent.