Hal's Mortgage Blog

The only industry in the repair trade with a worse reputation than auto mechanics is the credit repair business. A bad credit score can be alarming and the adverse consequences can bring a lot of personal stress. You may not be able to purchase the house you need, get the job you deserve, or be able to send your child to his chosen university.

Enter the vultures: “Bad credit 100% erased!” The simple truth is there is no legal way to remove correct information from a credit report. Red flags should also raise when a company advertises that mending credit will be quick, easy and require their secrets and skills.

 
The reality is that you can take steps to mend your credit yourself -- for free. First, you have to determine the specifics by obtaining your credit report. You can do that once a year for free at AnnualCreditReport.com. (Be wary of other “free credit report” claims; their “free” reports require you to sign up for a paid service.)

 
Study your report and note inaccuracies. You can dispute incorrect items directly from AnnualCreditReport.com, or by sending a letter to the reporting bureau. Be clear and to the point. The agency has to investigate and respond within 30 days.

 
If your credit report is correct, then you’ll go down a different path to restore your credit -- and avoid it getting worse. Prioritize your financial commitments. The top of the list should include your home, food, and transportation to your job. For example, you don’t want to use your money to stay current with your credit cards while neglecting to make your house payment. Avoid repossession and foreclosure first.

 
Contact each of your creditors as soon as you can. Explain your situation honestly. Communicate your willingness to pay what you can. Find out if they can come to an agreement that will not reflect poorly on your credit.

You will need a realistic budget to help you get back on track. Legitimate nonprofit credit counseling agencies can help you with this process. However, make sure you ask how working with them will reflect on your credit.

 
There is no way to instantly repair your credit, but raising your credit score is within your grasp. Correct mistakes on your report, pay your bills on time, pay down your balances, and your score will go up. If you would like more specific advice regarding your credit report, please call me at (615) 895-4265.