Financial Planning

A credit repair specialist provides many services with the ultimate goal being that of increasing the credit scores of the clients, thus helping them regain a favorable status that would allow them to take credit in the future. Some prospective borrowers simply do not have enough credit references to obtain the loan they wish to secure. If you find yourself in this situation, start by opening small lines of credit with creditors that report to all three major CRAs, and make purchases that can be paid off easily. If you do not already have a checking or savings account, open one immediately. Your bank or credit union may be able to provide you with a credit card account once you have established a history with them as a customer. If you do not have any established credit, you are not necessarily completely out of luck. Some lenders will pull a report that will reveal whether consumers pay their rent and utility bills on time. If they like what they see, they may approve you for credit. That is why it is extremely important to pay these day-to-day living expenses on time. In addition, your ability to hold a steady job will improve the likelihood of being approved for credit. It is also wise to start saving money for the down payment on your home, or other major purchase. The lender will look at your application more favorably when you are able to come to the table with a 20% down payment. Bear in mind, there are certain loan programs available that permit a percentage of gift money for down payment. Unfortunately, a person with a bad credit score is often in this position because he or she simply lacks the discipline necessary to their pay bills on time. Of course, there are exceptions, such as when unforeseen circumstances come into play, such as health complications, natural disasters, or loss of employment. The Federal Trade Commission (FTC) regulates credit repair services and provides free information to help consumers spot, stop, and avoid doing business with credit repair companies that are not reputable. Their web site is located at www.ftc.gov. If you have any complaints regarding your credit report or credit remediation services that you wish to report to the FTC, contact them at: Federal Trade Commission Consumer Response Center, Room 130 600 Pennsylvania Avenue, NW Washington, D.C. 20580