Repair Credit History
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To repair credit history takes some time and effort on the part of the debtor, but it is time and energy well spent if it gets a creditor back into the good graces of the business community. First the debtor must get copies of his or her historical financial report from the three reporting agencies. These reports are available at no charge once a year. The first matter to address when trying to repair credit history is to address whether there are any creditors who have put negative information in the file being disputed. Contact the creditor with whatever documentation available to back up the claim, and ask that the information be corrected with the reporting agencies. At the same time, report the dispute to the agency as part of the effort to repair credit report since they are required by law to investigate in order to make adjustments and corrections.
Sometimes unforeseen circumstances such as job loss, divorce, or medical problems have caused late or missed payments that are reflected on the personal record. To repair a financial history of this kind, contacting the creditor with an explanation is the first step. Requesting an adjustment in the payment schedule until getting back on one's feet will often be effective when seeking to repair credit report. Also ask at this time that they remove the bad payment report. If there have been no extenuating circumstances, but the borrower has gotten himself overextended, the process will be more complicated. There are companies on the Internet who offer to repair credit report for debtors. They will sometimes arrange for consolidation of debt as the means to do so. This is often the answer, because payments are then smaller and extended over a longer period of time at a fixed interest rate.
Be cautious if thinking of engaging a credit repair company to repair credit history, as some do not have the borrower's best interests at heart. If they suggest creating a new financial identity, don't fall for it. Serious trouble can occur when all that was wanted was to repair credit report. If they say they can remove bad credit or bankruptcy instantly, that isn't true either. Bankruptcy stays on a personal financial record for ten years by law, and other negative credit information is kept for up to seven years. Only a conscious effort and a personal repayment plan will repair a financial record. Honesty is stressed in the Old Testament, and it's just as important today. "Use honest scales and honest weights, an honest ephah and an honest hin. I am the LORD your God, who brought you out of Egypt." (Leviticus 19:36)
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