What is Credit Repair?
Credit repair is the process of correcting errors and delinquent credit histories in consumers’ credit reports. The term “credit repair” is a misuse, the term “credit management” is more appropriate because credit is something that has be managed in order to get favorable results.
There are thousands of credit repair companies that advertise repairing consumers credit by getting negative items remove from credit reports. The problem is, getting errors or delinquent accounts removed from credit files does not in it self improve or in many cases change credit scores. In order to effectively increase credit scores there must be a plan and a strategy put in place. A “professional” credit consultant should provide clients with “Plan of Action.” A plan that spell-out how the consultant will help their clients reach intended credit scores. If a credit repair company or consultant claim they can get items removed or increase scores, they should be able to explain how they will accomplish doing it. BE AWARE OF ANYONE WHO CLAIM THEY CAN INCREASE YOUR CREDIT SCORES BY 60-100 POINTS IN A SHORT TIME SPAN. If someone make such a claim, ask them, how?, then request a “detailed” written plan.
The “best” practice for managing your credit is to learn how to manage your credit yourself. This will ensure long-term success of having good credit, reduce stress and save you money.