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1/29/09

How to Get Help with Credit Repair Services

Many people have a problem controlling their credit card spending habits. As such, many people have a lot of credit card debt and thus, have financial problems because of it. Because of this constantly increasing debt, many people are late making payments, have charge-offs, and/or fail to pay a bill altogether. These practices lead to the destruction of a person's credit report and ultimately negatively affect a person's credit score. Most negative credit report information takes anywhere between seven (7) to ten (10) years to be removed from your credit report. However, a credit repair service can help you overcome these problems and put you on the fast track to credit report recovery.

Speaking from personal experience, credit repair companies can help you restore your credit report. When I was in college, I made the mistake of obtaining credit cards regardless of the terms attached to the same. As such, I ended up with numerous credits with ridiculous annual fees and very high interest rates. Additionally, because I lacked the knowledge on how to correctly use credit cards, I used my credit cards like a second bank account. Needless to say, my debts caught up with me, and I was soon in financial trouble.

The good news was that I was young enough to learn a lesson from my experience. However, the bad news was that my credit report was left in shambles. I did not want to wait the seven (7) to ten (10) years it normally takes for negative information to be removed. As such, I asked around and received a referral from a friend for a credit repair company.

Credit repair companies dispute the negative information in your credit report by using the law of the Fair Credit Reporting Act. Basically, if negative information in your credit report cannot be "verified" it must, by law, be removed from your credit file. Credit repair agencies use this federal law to basically exploit the fact that credit card companies usually do not keep exact records. As such, many times the negative information in your credit report cannot be verified and thus, it must be removed.

Credit repair companies can help, but you have to be aware of certain things. First, there will be a fee for their services. However, you should not pay too much money (no more than a couple of hundred dollars, depending on how much negative information is in your credit report). Also, you have to be patient. Depending on how much negative information is in your credit report, the entire process could take a year or more. This is so because by law, the credit reporting bureaus (TransUnion, Equifax, and Experian) have up to thirty (30) days to respond to your dispute. Additionally, you may have to dispute some information more than once. As such, the timeline gets longer.

If you have negative information in your credit report, credit repair services is an option that you should consider. However, do not pay too much, be patient, and keep your credit repair company aware of any correspondences you get from any credit card company or any of the credit reporting bureaus.

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