In most cases “do it yourself credit repair” offer longer term positive effects than using a credit repair company because it follows the nature law — to get a good credit you have to nurture good spending habits.
Good credit allows you to enjoy many things that are usually taken for granted such as credit cards and car rentals. But every time you miss a payment to a creditor, the creditor will report this to a credit bureau, and it will be added to your credit report. If you do this too often chances are you will be turned down for credit cards and most other types of loans.
Do It Yourself Credit Repair Vs Credit Repair Agency
If you turn to the internet or classified ads when beginning your research into credit repair, you’ll likely notice many companies offering credit repair services. Most companies claim that they can fix your credit report quickly, for a fee.
You should be wary in dealing with these companies as many of them are scams. In most cases what a credit repair company can do, you can do it yourself. What’s most likely to happen is that the credit repair company will urge you to get your credit report from the credit bureau, in order for them to challenge negative items on the report.
In some cases, credit repair companies will even go so far as to engage in activities of questionable legality. Namely, they will urge you to start a “new” credit rating through a change of address and banking information. This practice is not legal, nor is it usually effective.
Another approach is to do it yourself credit repair. You can repair your credit report by following the steps below but you can always look for online advice from a government source or other trusted organization.
Steps to Do It Yourself Credit Repair
The first step to fix credit is to get your credit report from the three major credit bureaus. Once you have the reports look at it closely, and challenge, in writing, any errors on the report — but only challenge items if there are genuine errors.
If your report is error free, you will have to engage in the traditional methods of credit repair. The best way to start is to get a secured credit card and use it regularly. In this way you will slowly repair your less than perfect credit. By being patient and making smart budgeting decisions, you will be able to pay your creditors on time.
Although the do-it-yourself credit repair approach is a slow process, it is the only truly effective one. As you’ll learn budgeting skills and build new spending habits you won’t easily fall into bad credit again. This is an important benefit that is not offered by a credit repair company.