Fix Your Credit File using Credit Repair Services

Guide to repairing your bad credit rating

Good credit can mean the difference between getting a car loan, home loan or any other type of loan.  Some companies, most common, auto loans, offer loans for bad credit risks, but the interest rates are very high. Credit ratings tell the banks and lending institutions how you pay your debts.  If you have had a financial difficulty, or job loss, paying bills late or not paying them at all will reflect on your record.

Increasing your Credit Rating:

Revolving credit is usually a great way to increase your rating.  This works best if the balance is kept below the limit, and the monthly payments are in full, and never late.  This can be accomplished by having a credit card, or charge card.

If your credit is seriously flawed and you cannot get a credit card, there are options.  You can apply for a secured credit card, which means that you open a savings account with the company and you get a card for as much as you deposit.  In other words, deposit $300.00 and your limit will be $300.00.  These are high interest credit cards, but they do help you establish good credit.

Considering a credit repair service:

There are companies that help you repair your credit rating, and charge fees to do so.  One main credit repair agency is Credit Repair Australia, and another popular service is Fox Symes.  They both offer a free consultation, and can tell you how much they can do for you, depending on the dings on your credit.  Sometimes they can bring your rating way up, other times they can’t help much, so getting that free consult is important.

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• Details of consumer credit enquiries
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They work by getting negative items removed from your credit.  Whether they are outdated, incorrect, duplicates or any other item that should be removed, they do it.  Each removal increases your rating.

Remember if you do sign up with one of these agencies they will advise, do not apply for credit or loans during the time they state they will work with you, generally at least a year.  Each application appears as an inquiry on your credit, which causes even more negativity.

They generally charge a monthly fee, which is dependent on how much work your credit will take to repair.  Some offer first time customers serious discounts, so be sure to look into discounts.

One Step at a Time:

Patience is the key to credit repair. Although you can do the work yourself to repair your credit, it will most likely take much longer than using a credit repair service.  It entails contacting your credit reporting agencies, one by one, writing letters to dispute items on your credit report, and waiting for the response letters.  This could take much longer than the year most credit agencies claim to complete repair.

Doing your own credit repair:

If you just cannot afford a credit repair agency, the first step on the road to repairing your credit is to obtain your credit report, and review it with attention to detail.  Look at every line and make notes.

Each item that is questionable, or duplicated should be listed in a letter to your credit-reporting agency.  Going to the website of say, Veda, will give you an example of how to dispute credit listing on your credit.  Some even offer online credit disputes.

Once you list all of the discrepancies, send them to all of the credit agencies that report credit.  There are a few in Australia – Veda Advantage; Dun and Bradstreet; and Tasmanian Collection Service are the biggest.  Each receives about the same information, however you need to contact all three individually to have anything removed over all three agencies.

Implement Sound Practices

In the meantime, keeping your credit clean, and not charging or adding inquiries or other credit discrepancies is seriously important.  Not to mention that any additional work will cost you more with your credit repair agency.

Some tips to do this is to live within your means.  Don’t charge everything, and make a plan or budget to start paying off debt.

And again, be patient – it takes time, but once your credit is ‘gold’ again, life will be great.  You can buy that house, or car you’ve always wanted with the best possible interest rate available.

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