When you fall behind on your bill payments and start getting "past due" notices in the mail and constant calls from creditors, it can feel as if there's no way out of your debt problems. Fortunately, you can find help. With specific knowledge and a willingness to swallow your pride and seek help, you can get your finances, and your life, back on track.
What Is a Credit Report, and Why Does It Matter?
Every consumer who has ever used any form of credit, such as a car loan or credit card, has a credit report. These reports are created by the three main consumer credit-reporting agencies: TransUnion, Experian and Equifax. These reports play a key role when creditors determine if you should receive a loan. You can look at your credit reports every year without charge by visiting AnnualCreditReport.com and requesting your three reports.
Can I Remove Information From My Credit Report?
Although you can change mistakes and have errors removed from your credit reports, you can't have correct information removed unless it stays on the report for longer than the legally allowable time period, which is either seven or 10 years. The Federal Trade Commission states that it's illegal to remove timely and accurate data from a credit report; any company offering such services is typically a scam. Further, there's no fee involved for either claiming information is incorrect or having the credit reporting agency perform an investigation.
Can a Credit Repair Company Help Improve My Credit?
There are a number of companies and individuals offering credit repair services. Although these companies can help you repair your credit or negotiate debt settlements with your creditors, they often end up charging their clients more than they can afford and end up leaving consumers worse off than before. The Federal Trade Commission states that any time you deal with a credit repair organization, demand to see a written contract detailing their services and fees.
What If I Need Professional Help?
With all of the questionable services offered to people with bad credit, it can be difficult for you to find a reputable organization. Personal finance author Liz Pulliam Weston recommends finding a credit counseling organization affiliated with the National Foundation for Credit Counseling. You can also speak to a bankruptcy attorney for advice. Although bankruptcy isn't a pleasant option, it's a viable one for certain consumers who have few remaining choices.
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