How to Repair My Credit

How to repair my credit? It is a query that troubles the minds of millions who are dealing with the devastating consequences of debt. It is also a phrase that is searched on the Internet with increasing frequency, triggering nearly 10 million hits on Google alone. Nonetheless, the apparent wealth of information about credit repair conceals a large number of people whose advice may either confuse or capitalize upon those seeking to rebuild their lives.

None of us need such further complications, as the lingering damage that a troubled financial past does to your financial mobility can not only diminish future prospects but prevent you from fulfilling your current needs. It is important to remember that there are ways one can restore credit status, but they require a sense of commitment and financial maturity that demands a form of uncompromising fiscal responsibility which instills a sense of self-discipline that will not only lead you to financial independence but help ensure that you never jeopardize it again through endangering your credit.

A commonly cited means of “fixing credit” is the pursuit of a credit dispute. You should be extremely wary of companies which offer to conduct this process on your behalf. Websites which depict credit disputes as the ideal form of improving credit encourage you to scrutinize your credit report for errors which you may use in order to contest the legitimacy of the case against you. It should be noted, however, that you already ought to examine your credit report closely every time it is issued since you are eligible for a free annual copy and a detailed knowledge of its contents will strengthen your awareness of your financial standing, which may help you avoid falling into debt in the first place. Additionally, those free credit reports provide you with information that will allow to conduct much of the credit repair process without having to pay a company to do it for you.

Sites which advocate credit disputes often present attractive offers, claiming (among other things) that they can legally erase all derogatory information (negative active information) from your credit file. This is completely untrue. Furthermore, be suspicious of companies which do not ask you to contact the three major credit reporting agencies (Equifax, Experian and TransUnion) directly. They should also inform you of your rights before you hire them and cannot demand payment before they have completed their services.

While credit repair appeals to us due to its promise of compromise and reconstruction of our lives, any successful route to stability and financial autonomy depends upon responsible behavior. That may well begin with a debt repayment plan which has to be carried out with consistency. If you can succeed in maintaining a detailed base of knowledge about your credit status and can handle repayments in due fashion, then it is possible not only to repair your credit but reinforce your security.

Siddarth Nagaraj

Siddarth Nagaraj is a junior at the University of North Carolina-Chapel Hill. He is currently pursuing a double major in Global Studies and Political Science with a minor in Geography. Originally from Winston-Salem, North Carolina, he is interested in socioeconomic inequity and cultural diversity in developing nations. He is also a Section Editor for The Hill, UNC’s only nonpartisan political review, and has written multiple articles on international affairs for the quarterly publication.

Since the summer of 2010, he has volunteered as a Savings Officer for the Community Empowerment Fund (CEF) in Chapel Hill, which seeks to promote financial literacy and help fiscally strained individuals achieve self-sufficiency. Apart from writing, Siddarth enjoys reading, travel, and watching British television programs. Upon graduation, he plans to earn a graduate degree and seek employment in the field of international development.

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