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How Credit Repair Works

A 10-part Credit Repair Guide

<< Part 10 — Part 1 — Part 2 >> 

how credit repair worksHow to Repair Credit
In today's dwindling economy, multiple consumers are suffering from low credit scores. Without good credit, you decrease your ability to obtain mortgage or car loans, rent an apartment, or even get a job. That's why it's more important than ever to seek credit repair options.

If you're one of the millions of Americans questioning how to fix your credit, there is hope. By seeking professional credit repair services, a counselor will evaluate your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion). Throughout the process, the counselor will spot all errors, inaccuracies, and other negative items that are causing your credit score to take a dive.p; Then, your counselor will dispute all those negative items with the credit bureaus.  If they don't provide valid evidence as to why those items appear in your reports, they're forced to delete them within 30 days.

You cannot fix your credit overnight. If you have a 605 score, it won't transform into a 720 within 3 days. However, if you take advantage of a quality credit repair company, you can drastically improve your scores within 6-9 months.

Understanding how Credit Repair works
FunNewJersey.com has done extensive research to find the top 10 Best Credit Repair Companies that are legit and that can help consumers eliminate negative items from their credit reports. Our #1 choice for the best credit repair company is ScoreCure.com. Score Cure is the only company that we would endorse as part of our 10 step credit repair guide.
 
FunNewJersey.com presents our new 10 part credit repair guide that tells it like it is. We have taken the time to get you the facts. There is so much useless information on the internet about credit repair and how it works that it makes it very difficult for a consumer to know what the facts are and what they can do to improve their situation.
We will try to set the record straight and finally offer sound credit repair information that can be trusted and fully understood by consumers.
 
Understanding your Credit Score
In understanding how to fix your credit scores, you must first understand what goes into your credit scores.  Your FICO score consists of five simple factors:

Payment History (35%):  Are you making all your payments on time?  Do you have a series of late payments and delinquencies? Your payment history accounts for the bulk of your credit score. Even if you're carrying high balances on your credit cards, as long as you're making at least the minimum payments every month, this part of your credit score will remain unscathed.

Amount of Debt (30%)Now for those of you who are carrying high balances on your credit cards, 30% of your FICO score consists of your amount of debt (a.k.a. debt-to-income ratio).  Lenders and creditors look down upon applicants with faulty debt-to-income ratios.  For example, if you owe $13,000.00 in credit card payments and only $5,000.00 has been paid off, this part of your credit score will suffer.  It's highly suggested that you keep your debt-to-income ratio at 36% or below.     

Length of Credit History (15%) If you own credit cards and other forms of credit, how long have your accounts been open?  The longer the better. If you only own two credit cards that have been opened during the last 6 months, most likely this part of your FICO score will suffer.

New Credit History (10%)As important as it is to have credit accounts that have been open for 7 years or longer, new credit history also plays a minor role in improving your credit score.  That's why, in addition to disputing negative items on your credit reports; credit repair services help you establish new credit.  Whether it's in the form of secured credit cards, unsecured credit cards, or trade lines--establishing new lines of credit can help boost your score by at least a few points.

Types of Credit (10%) Lenders and creditors appreciate variety.  Successfully managing one or two credit cards will help your credit score in the long run, but your credit score will be further improved if you successfully juggle different types of credit (i.e.:  mortgage loans, car loans, student loans).
How Do I Sign up for Credit Repair?
Credit repair can be done on your own, but to repair bad credit successfully it's best to leave it up to the professionals.  Credit repair companies, like Score Cure, offer you affordable credit repair programs that will fit your budgetary needs. After you sign up for your FREE consultation, your credit reports will be evaluated and your credit counselor will determine a detailed course of action.
 
credit repair process
 

Go to Part 2  Understanding Credit Repair Laws
Learn how credit repair laws can aid in repairing your credit legally.  Learn about the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA), and how they were created to protect your rights as a consumer.
 

Need more help? 
If you're looking for help as soon as possible, see our list of credit restoration companies and the best debt consolidation companies.
 
Free Credit Repair Consultation

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