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The importance of Credit Repair

By Janet Lacey
Published: Sunday, November 1st, 2009

Credit is a term used to explain the action of an individual where he brows money from a company and buys goods or services. This action also implies a promise or a guarantee to repay the loan in timely and regular payments. The amount of the instalments is decided before hand.  The entire of United States works on this principle. One should take extreme care of one’s credit history. Credit history plays a very important role. Every time you want to invest, you need to go to a creditor. This creditor is going to be lending you money. So he needs to check your financial background. This is found on the credit report.

The credit report holds all the information a creditor needs to make a decision. It will have details of every credit of yours. It will also have details of every payment you made. He can tell how many times you have delayed a payment. He can also tell the maximum limit on your credit card. Thus, having a good credit history is of extreme importance. It decides your future. You will be able to get the best of the credit options if you have a great history.

Credit repair is the process one undertakes to repair any damage on one’s credit report. Credit repair is fairly simple. It is a series of steps taken by a person who wants to repair any damage on his credit report and get his credit history back to a better shape. One of the first and most basic steps involved in credit repair is ordering credit reports. Credit reports are produced by agencies in United States. There are three such agencies. They are Experian, Equifax and TransUnion. Each of these agencies is supposed to give you a free copy of your credit report each year. Make use of this and order the report.

Credit repair mainly involves keeping yourself up to date with all of your financial information. Keep a tab on all the information and if you find any discrepancy, raise a dispute immediately. Send a litter to the agency requesting an investigation into the matter immediately. Ideally, the investigation should be complete within the stipulated time. However, if the agency is not able to complete the investigation, they have to strike the entry of the report and send you a new copy of the corrected credit report. The process seems to be very simple on paper. However, it is actually a laborious process. The help desks you reach are not very helpful and replies are not very prompt.

The entire process itself is long winding and tiresome. However, you can choose to hire a credit repair firm. These people have been in the field for a really long time. They are very experienced. They know the ins and outs of the business. They can go through the process easily and know the procedures. They are much cheaper than any expensive attorney or consultants you can hire. These credit repair firms are excellent with their work and can repair any credit history in short span of time.

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