How to Fix Bad Credit & Reestablish Good Credit With Credit Repair Experts

Credit repair experts can help repair and reestablish credit. When you fall behind on your monthly payment obligations, a reputable credit repair agency can assist you in consolidating debt and making settlement arrangements. There are various types of credit counseling and repair services offered. Some companies charge outrageous fees and make false promises, warns the Federal Trade Commission (FTC). It is important to find a legitimate company to help you repair and boost your credit score.

Instructions

1

Learn how to recognize a scam. According to the federal Credit Repair Organizations Act, a credit repair company is not allowed to require payment in advance for services. Avoid companies that make promises to delete negative information from your credit report.

2

Find a trustworthy credit repair counselor, advises Nolo.com. Search for accredited nonprofit agencies. The agency should also be a member of National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCA). Both uphold members to strict quality standards. You can refer to the Department of Justice U.S. Trustee Program for a list of approved counseling agencies in your state (see the Resources section).

3

Attend the counseling and education course. A counseling session should last approximately one hour, according to the FTC. The session will cover your entire financial situation including income, debt, expenses and financial hardships. You should receive a proposed budget plan to get you on track. Your counselor also should supply free educational material related to your financial issues.

4

Enroll in a debt management plan (DMP). The plan can help consolidate your debt and lower the interest rate, resulting in a more affordable payment each month. The DMP also can help you get out of debt sooner. The credit repair expert should make sure your creditors report to the bureaus that you are in a DMP.

5

Deposit money each month with your credit counseling agency. They will use your deposit to pay your bills according to the payment schedule that you set up. As you continue to make consistent payments to your creditors over time, your credit score will begin to improve.