Debt and credit

Is Credit-Repair a Good Idea?

credit-repairThough we all know that bad credit is not a permanent situation but we all have to accept that it could really bring us down. We get in a lot of bad situations if we have a bad credit. We cannot get the house or the car we always wanted and if ever we do, lenders would kill us with very high interest rates. If we try to rent a house, landlords would ask for big deposits because of our credit standing and sometimes even employers judge us by our credit score.

And because of these reasons, many people fall prey to the advertisements of credit repair companies that are thriving online, on TV, newspapers and other media platforms. There are many credit repair companies offering to do magic with your poor credit score.

Though the idea of having someone to do the repair for you of your ailing credit is very enticing but shouldn't we look deeper into this if it really is a good idea? But in any industry, there will always be good and there will always be evil people. Some may do it legitimately and some may do it just to steal money from you and wouldn't do anything at all to help you with your credit mess.

credit repairBefore you go on shopping for credit-repair companies, maybe you should check out first your credit report and see if you have delinquencies which can only be repaired in time and not right away. And of course this could only be done by you if you change how you manage your debts.

A good example o this is your bankruptcy information which will remain in your record for ten years and if it is about unpaid judgment s then it stays there for seven years. The truth is, whatever these credit-repair companies of making your problems go away, and it is just too good to be true because there is information that needs to be repaired over time.

No matter what propaganda they would try to entice people to get their services if you know the real score of your credit standing then you cannot be duped. Because you know very well that repairing your credit score is your responsibility and know that you are the one who can help yourself like correct all inaccuracies in the past and change your spending habits and how you manage your finances and of course how diligent you are at paying your debt on time and with the exact amount. In short, discipline is the key to a healthy credit score.

Of course you will not just take my word for it, desperate times call for desperate moves and when you are in despair you will obviously call someone even if you have to ask for help at gunpoint. Anyway, let me just give you pointers on how to smell a scam and what you should do if you ever get the services of a credit-repair company.

First is ask them "how?" ask them how are they going to repair your credit. Of course they will tell you that it is confidential on how they do their business. But wouldn't it make you wonder how could they fix something impossible unless you do it yourself?

Second, the credit-repair company should not ask for an upfront fee and it is stated in the Credit Repair Organization Act that they were only to ask for payment once the job is done or when the promised services has already been performed.

The worst would be, if the credit-repair company asked you to create a new identity which is obviously a big illegal blunder. They might ask you to use your TIN instead of your SSN in doing transactions and when you do, you are committing a federal crime and would get you into a much bigger trouble. Never be persuaded in doing something like this.

Whatever your situation is right now, never despair. That's what these credit-repair companies fed on. They feed on the feelings and anxieties of people with bad credit score. There is something you can do and you are the only one who can help yourself.

Georges Kfoury is the founder and Chief Executive Officer of Leaderscorp Financial Inc., headquartered in Rancho Cucamonga, CA. Founded in 2003, Leaderscorp Financial is a leading provider of mortgage refinancing dedicated towards providing affordable home loans. Although without a mortgage background, Kfoury was able to immediately take the company to a level of generating annual income ranging from 8 to 10 million dollars.

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