Let’s be honest in today’s day and age it is impossible not to have bad credit, little alone try to navigate life’s terrain with poor to bad credit. Credit is essential to the way we navigate life and with so many changes and new laws forming it’s essential that you know what’s in and what’s out. Truth is with so much information available one can say that there are different ways of doing things but I can say this if it is not impacting your credit in a positive way it’s not working. The overall goal is to have established credit for better rates and overall better leverage on your behalf. 

    Consumers with a troubled credit history often seek credit repair companies to improve their credit to have an easier time financially. As you navigate credit repair and evaluate the best option for your credit, here are the most critical things you need to know about credit repair.

1) You can tackle it yourself

There are many businesses that offer to fix your credit for little cost with at times good to sub-par results. Nonetheless, not all sizes fits all. Many people think they need to hire a professional credit repair company to assist them with repairing their credit rating. Like we had mentioned before in today’s day and age there are many resources available to us to repair your credit on your own at your own time, you can do it yourself. We are self-educated beings with much to learn and new skills to apply. Doing it yourself does not save you time nonetheless, it sure can save you money.

2) A credit score is a measuring tactic 

Your credit score helps you view where your credit really stands. The foundation of your credit is it in a solid foundation or is it on shaky ground? Whether you have good or poor credit it’s based on the information of your credit report. Without knowledge of the credit reporting system, it can be extremely difficult to understand your credit report history and what steps to take correct any inaccuracy.  That’s why it is extremely important to monitor your credit score at the beginning of any rebuilding process and thereafter to maintain it. Any low credit score indicates a poor credit history that needs work. As your credit score improves, it’s an indication that your credit history is improving. So, what is your credit score measured on? Your credit score is based on five categories of information: payment history, amount of debt, the age of credit history, types of credit accounts, and recent applications for credit. Improving your credit in each of these areas will boost your credit score.

3) Credit repair is about your credit report, not your credit score

The main reason a person wants to improve their credit is to purchase a new home. Or they want to purchase a new car. Maybe because they are in the military and must maintain a good credit history or finally, it is required by their employer or new  employer. In reality rarely does anyone just want to fix their credit without having a reason. At the beginning of the credit repair journey, all one expects is for your credit score to go up. Nonetheless, little do some know that credit repair is about improving the information on your credit report. That is what ultimately is going to get you a better credit rating. The basis of your credit lies in the balance of the influence you perceive on your credit report. One can always check their credit history by requesting a copy of your credit report form a designated credit agency. Please take into consideration that everyone has one yearly free credit report that can be obtained by visiting


4)When removing “accurate” negative information gets tough 

Please note the emphasis on accuracy. Credit bureaus are only legally obligated to remove inaccurately reported information from your credit report. Does it matter whether those inaccuracies are positive or negative? No, in fact, if the information is inaccurate that would allow us to remove it from the credit report, not that it is negative that causes the deletion. When accurately reported negative information hurts your credit, it’s tougher to remove this information because the credit bureaus are within their rights to report this information. Furthermore, the integrity of the credit system depends on credit bureaus reporting all accurate information, even information that’s negative. There lies the opportunity a person seeks to improve one’s credit report. 


Let’s not forget that there are specific strategies to remove accurate negative information for example collection accounts that one legitimately owes to the collection agency. Some of these strategies may take a longer time and effort than any credit dispute. These types of accounts may require debt validation tactics for the collection agencies, pay or delete or goodwill deletion request are the best methods.

5) Why closing accounts will not help

One must understand the way in how credit is truly viewed by the credit bureaus. By removing or closing an account does not mean you will be fixing the problem. It is a widespread misconception that that only open accounts are included in a person’s credit report, that closing an account will remove it from their credit report. Sorry to inform you that you would be greatly disappointed to know that if that was your hopes saving your credit by closing an account that’s giving you problems will only result in more problems. In most cases, closing an account can actually hurt your credit score even further.  


“Before [closing accounts], consumers should take into consideration other factors that comprise credit scores, such as the length of time the account has been opened,” says Nancy Bistritz, Director Public Relations and Communications of Global Consumer Solutions at Equifax, one of the three major credit bureaus. “If you’ve exhibited the right kinds of behavior for an established period of time with an account (i.e., paying on time every time), then closing that account may not make sense.”

Therefore, closing an account will not remove it from your credit report. All the information about the closed account will continue to be listed on your credit report as reported by your creditors. It is best to bring back the outstanding account to good standing by catching up on the past due balance. Once the account is brought up to date it will help you increase your credit rating by having an active positive account. The positive payment history will help you on your journey to a better credit rating. It is difficult to open new accounts with a bad credit score. It is like filling a bucket that is overfilled. It is much easier to fix accounts that you have already have open, fixing it while keeping the account longevity to propel your credit rating. 

6) Why doing nothing might be a strategy to some

How long does negative information really stay on your credit report? Most negative report information stays on your credit report for 7 years. Some creditors have become a little savvier than others by reselling the debt to a buy debt company and reinstating the debt for another 7 years. There are still exceptions to the rule like chapter 7 bankruptcy and unpaid tax liens that can be carried over on your credit report for up to 10 years. As well, unpaid judgments can remain on your credit report through the state’s statute of limitations for that type of debt if the statute is more than seven years. 


Now in reality, if an account is nearing the credit reporting time limit, waiting for it to fall off may be the less expensive and time-consuming then disputing the debt.  


Take into consideration that contrary to popular belief, taking action on a negative account cannot extend the credit reporting time limit. Although you decide on your sixth year to pay off a debt it will still drop off your credit report after year seven. Do take into account that not all size fits as some may need faster results on their credit repairing journey, therefore, it would be easier to handle the matter at its source for a quicker resolution.  


7) Improving your credit score but not changing your bad habits

Have you ever seen a cigarette smoker trying to quit cigarettes with a nicotine patch while still smoking a cigarette? It is more common that one thinks that some don’t know that this increases the smoker’s chance to continue smoking. Well, the same thing goes for someone that fixes their credit for what they needed. A lot of people go through credit repair whether you are a self doer or you hired a company to do it for you. The main goal was to improve your credit rating and get out of a rut. After the indulgence of attaining the borrowed money, for a mortgage or auto loan, the once hardline struggles of bad credit seem to fade away.  


Many people, unfortunately, find themselves back in the same situation because they don’t borrow responsibly, ending up with more debt than they can handle and slip back into habits of missing payments for overindulging in their own bliss. If you are truly looking for financial freedom one must adopt that will maintain good credit. Above all understand what it takes to maintain good credit. This means borrowing only what you can realistically afford to pay back (and maybe even a little less). Paying your bills on time is perhaps one of the best things you can do for your credit. Rule of thumb, if you could only afford the minimum payment due don’t do it. 


Elizabeth Warren says, “Credit cards are like snakes. Handle ‘em long enough, and one will bite you.”  Now I ask you this if credit cards are snakes how many snakes do you have and how long?


8) You can’t expect overnight results

Have you heard the saying “Rome was not built in one day” well the same goes for credit repair. Except when it comes to credit repair it’s in increments of 30 to 45 days when you get a response from the bureaus or collection agencies if you get a response at all. Just like it takes time to build a bad credit history it takes time rebuilding a good one. Your credit score consists of your most recent credit activity history-making more significant than older credit history. Almost all good credit history typically has minimal numbers of negative entries and much recent positive credit information. A few months of doing the correct thing, for example, paying on time clearing old balances and disputing inaccurate information is a step in the right direction. As time goes on month to month the older information begins to fall off and dissipate. All that does is carry over positive information that increases your credit score, improving the overall health of your credit.    


We all know that bad credit is an accumulation of bad habits of credit management over a period of time. So it is extremely important to understand that it will also take a patient person to repair those bad habits. Repairing bad credit takes time, therefore, it’s imperative to be patient with the process of fixing and rebuilding. For the most part to see the credit score that most people desire they must first fix and then rebuild. Although you might see immediate boosts when something is deleted from your credit report you must still rebuild your credit to sustain it. Sustaining begins with good habits and patience. 


Furthermore, your credit score will fluctuate as you are going through the rough terrain for your credit fixing and rebuilding process. This is completely normal so do not be alarmed if your credit score drops after rising, this is completely normal in this stage. The overall goal is to focus on the long term credit rating goal than on the minute day to day fluctuations.


9) Credit repair companies

You may see lots of ads for credit repair companies. The truth is it’s a hot commodity. Credit repair companies serve people that don’t have the time and do not want to deal with the stress that comes with the job. Some you may find that some credit repair companies promise a lot of over the top promises to really fall short on them. Like I had mentioned before knowledge is power and not all size fits all. The FTC “Federal Trade Commission” has cracked down on lofty promises credit repair companies leaving only the really good one standing. 


Over the past several years the FTC has pursued dozens of credit repair companies trying to weave out the unethical ones. Any company that was found not worthy of their metrics were dealt with upfront fines. Here are a few signs that you can be dealing with a shady company. If they ask you pay upfront before any services begin, cite an affiliation with the government or special relationship with the credit bureaus, promise a specific credit score, promise to delete accurate information from your credit report, fail to inform you of your right to dispute information directly with the credit bureaus or ask you to waive your rights under the Credit Repair Organizations Act. You might just stay away from these companies.  In conclusion, credit repair companies are indeed essential because the real good one do get you results. They monitor and advise you on good credit habits but most all have your best credit well being in mind. If you can’t do it yourself do your research and see which one fits best for you and your situation.

Let’s work together