Repair (MP) “Charge it” is a phrase we hear all too often, it’s landed many of us in big time debt. Nowadays, buying products and services on credit is so easy that lots of people have problems. In fact, personal credit challenges are affecting people across America in astounding numbers. It is estimated that 1 in 7 people are seeking credit repair. That one sixth of the population, mind you.
Statics show that the average Joe/Jane carries three credit cards, totaling around $5,000 in debt. And that’s average. While only a few may carry $3,000 to $5,000 in debt, others far exceed $20,000 or $50,000, particularly, when student loan debt is considered.
Despite your particular situation, you have decided to take control of your debt, and get a peace of mind. Throughout this series, it is essential to understand that all credit debt can be fixed. Regardless of how scary and or complicated it may seem. The best ways to rebuild damaged credit is to continue moving in a positive direction, one day at a time. Let’s see how credit repair can be your friend without costing you a fortune…
Credit Repair & Expenses
1. Sit down and list all your monthly expenses and place them into columns of “must be paid” and “can live without.” Stop all credit card buys and start paying with cash, as this will restrict your expenditure to the amount of cash in your wallet.
2. Transfer all high-interest rate credit cards to a low-rate card. Look for low rates on the life of a balance transfer so you don’t have to worry about playing the transfer game every year. Cut up the other cards and close the accounts.
Next up is Repairing Credit via the Credit Reporting Agencies…
Three major credit bureaus
There are three nationally recognized credit bureaus (Equifax, Trans Union and Experian). They are used by both professional, reputable lenders and credit repair companies like #1 rated creditrepair.com. They function is to compile, update and sell information about your credit history. History such as payment habits, including loans from banks, credit unions, finance companies and retail stores. Even information about landlord, lease, rent payments, mortgage payments and the Internal Revenue Service can be found.
Some examples of specific data that may show up on your credit report are as follows:
- Bank Credit Cards (Visa, MasterCard, etc.)
- Retail Credit Cards (Home Depot, Sears)
- Home Loans
- Auto Loans
- Student Loans
- Additional Loans
As mentioned, most credit reports are thorough. If you have defaulted on any payments, your report may include:
- Utility Bills (gas, power, water, etc.)
- Medical Bills
- Rent Payments
- Property Taxes
- Attorney Bills
Two Main Types of Credit
Mainly when you borrow money, you will meet two primary types of credit: Secured and unsecured.
Secured credit: A loan that involves collateral. Lenders keep rights of ownership to these products (cards, homes etc.,) til such time have paid for them in full. After you have paid for the item in full, you are granted full ownership rights and so, issued the original deed or title.
Unsecured credit: Commonly known as a signature loan is a line of credit extended due to your reputation and credit-worthiness. Quite simply, the lender has faith in your ability to pay back the amount that you borrow. Credit cards are the best example of unsecured credit. If that you don’t pay your credit card debt, the repo man won’t show up and take your groceries and clothes you charged on the card.