Credit Repair: Say Hello to the New You!

Finance Articles | December 22, 2007

Did you know that over one-hundred million consumers are paying higher interest rates than they should due to errors on their credit report? Credit repair expert Jim Kemish discusses the importance of a regular credit review and repair strategy.

Credit Report Errors

The credit reporting industry is far from perfect. And yet your entire financial life depends on the content of your credit report. Out of the two-hundred million consumers that have credit records with the three major credit bureaus over one-hundred and fifty million have errors on their reports. The potential impact of these errors is tremendous. Virtually all lenders, from mortgage lenders to auto finance companies determine the interest rate that they will charge based on your credit scores. Even minor credit reporting errors may have a major impact on your credit score; this can translate into higher payments on every dollar that you borrow.

A Dramatic Impact

It’s my opinion that no one should throw money away. If there are errors on your credit report you may be paying hundreds of extra dollars every month unnecessarily. Stop it! You have more control over the situation than you think. The legislation governing the credit reporting industry is there to protect you. The Fair Credit Reporting Act (FCRA) and its 2003 amendment, the Fair and Accurate Credit Transactions Act (FACTA) provide procedures for correcting errors on your report. A good credit repair company can harness those laws to make sure that you are not throwing your money away needlessly. Your credit scores should never be allowed to reflect the presence of errors. But it’s up to you to take action.

Get Your Credit Reports

The legislation enacted to protect you from potentially life altering errors on your credit report requires that the three major credit bureaus allow you access to your credit report one time each year for free. The website mandated by the government for this purpose is AnnualCreditReport.com. This is the only site set up for this purpose. Use it! Do you work for a living? Would you like to have more money left over each month? Would you like to build your savings? Don’t let your money slip away! Make the effort to insure that every erroneous item is removed from your report. A credit repair professional can help you identify all of the issues that can have a negative impact on your score.

Give Yourself the Benefit of the Doubt

Don’t be shy! So, maybe you have made mistakes in the past. Most people have. That is not an excuse to ignore the other potential errors on your credit report. Too many people are embarrassed about past mistakes and afraid to look at their credit reports. Don’t hide! It will only compound the problem and increase the unfortunate impact on your financial life. I counsel people on these issues all day long. Take a deep breath and do whatever is necessary. Get your reports. Review every single line of information. Look at the neutral information too. Misreported neutral information, such as account opening dates and high credit limits can easily depress your scores significantly. I advise you to speak to a credit repair expert for help analyzing your credit reports. It’s your life. It’s your money. Nothing on your credit report should be neglected.

You Will Feel So Good

There is nothing like the feeling that comes from knowing that you are doing the right thing for yourself. You can have that feeling right now. Start the credit repair process and the results will come before you know it. As your credit scores improve you will have the opportunity to refinance the high rate loans that you currently have. The amount of money that you can save by reducing the interest rates on your mortgage, auto loans, and credit cards can be dramatic. If you could save $500 each month and deposit it into a savings account earning 5% annually you would have accumulated over $77,000 in savings in only 10 years. Think about it.

You are on Your Way

Once your credit repair program is underway it becomes easier and easier to stay ahead. As your score improves, and you are able to lower the interest rates on your debt, your budget will ease up. You will soon develop a financial cushion that will make it possible to meet your monthly obligations even when unexpected expenses arise. It’s time to say hello to the new you!

Article Tags: Credit Report, Credit Reporting, Credit Scores, Credit Repair

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading credit repair business since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.