This is what I have learned in 6 years of working with credit reports. The first thing you should know about fixing your credit score is that it will not happen over night. Stay positive and focused on your goal. From my experience the best formula to fix your credit in 3-12 months is to sign up with a solid repair company plus in the mean time establish new secured debt through your local bank or credit union.
Credit Repair companies – What they do and how to pick the right one
These companies help people dispute negative credit reflected on a credit report. Most reliable repair companies use different laws and statues to fight or dispute negative reporting by communicating with the three major credit bureaus. Repair takes some time so if a company offers to fix your credit in a matter of days, i would question their credibility. Be patient and take time to do some research on the Internet.
Credit repairing does work. Initial results typically will happen within 45 days or less. I have seen credit repair companies successfully dispute bankruptcies, repossessions and collections big or small. Foreclosures are very difficult to dispute so do not expect that to happen.
Do not use a credit repairing company that charges a monthly fee. This will only drag out the process. Always know the cost up front. Either set up a monthly payment plan or pay up front. All credit repair companies will request a payment or payment schedule to be set up before they start helping you.
Secured credit cards / high interest rate credit cards – Go down to your local Wells Fargo or Bank of America and open up a secured credit card. This will allow you to borrow from your own money and have it reflect as good credit on your reports. Think of it as a checking account that helps you build credit. Make sure that the bank reports to all 3 bureaus. There will be some small fees involved with having a secured card. I also encourage more then one secured credit card. Two secured cards would be great.
- Sign up with repair company
- Get secured credit card (Do this right after you enroll in credit repair)
- Follow up with credit repair company every 30 days.
- Credit score should see significant increase in 3 months. Typically, your best results will happen the first few months that you start the process. Depending on credit profile, if you continue this process for a year you should see incredible results.
Source by Igor Drake