Below is useful information about what an attorney at Maceau Law can do for a situation involving credit repair in Colorado Springs:
Having a bad credit rating is a common problem today. This is mostly a result of the tumultuous economic situation that has left many individuals with no financial choice except to default on their debts. As a result, their credit ratings are now dismal. The Federal Trade Commission recommends individuals try and repair their own credit before hiring a professional. Thankfully, there are easy ways to repair credit, and they are as follows:
Before attempting to rebuild a credit rating, an individual must discover their own personal credit rating. In order to accomplish this step, individuals can access their credit report via Trans Union, Experian and Equifax. By federal law, individuals can obtain a free copy of their credit report from each company yearly. After obtaining a copy of their credit report, individuals should review it for accuracy. Individuals can also note any missed or late payments or maxed-out credit lines, which are red flags for creditors.
If individuals note incorrect information on their credit report, they should send the credit reporting company copies of documentation that proves the mistake on their credit report along with a letter noting the mistake. Individuals must include their name, address and each item that they dispute within the letter. Credit reporting companies are legally obligated to investigate these items within 30 days of receiving the information. They must also forward all relevant data to the information provider in an effort to correct the mistake. If the credit reporting company does not resolve the problem, individuals can file a complaint with the Federal Trade Commission.
Most individuals seek to avoid their creditors when they are behind on payments. However, this does not help them repair their credit. When an individual realizes they will not be able to make a payment for any debt, they should immediately contact the creditor, and let them know. Most creditors will agree to take less money each month in order to prevent an individual from filing bankruptcy. After all, it is better for them to receive less money each month than no money after an individual has declared bankruptcy.
If an individual can successfully negotiate with a creditor for lower monthly payments, interest rates or a lower payoff balance, they should get this agreement in writing. This action protects the individual from creditors that may change their mind down the road. When an individual has something in writing, they can prove their arrangement was valid. Once a debt is paid off, it is a good idea for individuals to send a copy of the settlement letter to the credit bureaus.
One key step to repair bad credit is stop making it worse. For that reason, individuals interested in repairing their credit must stop charging money and must seek to pay at least the minimum payments on all debts.
Keep a few credit accounts open:
Believe it or not, closing too many credit accounts at once can actually have a negative effect on a credit score. For that reason, individuals should close no more than one or two accounts every six months. Because a large factor when contemplating a credit score is length of credit history, consider leaving the older accounts open and closing the more recent accounts.
Acquire a secured credit card:
If individuals are fearful of keeping credit cards when they have had a difficult time handling credit, they can acquire a secured credit card in order to build up their credit. A secured credit card is usually obtained at a bank. The individual gives the bank a certain amount of money, and the credit card is set at that exact amount. In other words, no amount of money is charged because the individual has fronted the money. Using secured credit cards will positively impact an individual’s credit.
Avoid bankruptcy if at all possible:
In some situations, bankruptcy is unavoidable. However, if individuals can avoid filing bankruptcy, they should. Because bankruptcy stays on a credit report for several years, it can make repairing credit difficult.
Make all payments on time:
Once an individual has negotiated lower payments with creditors, they must make their payments on time. This act alone will result in a better credit rating.
Is hiring an attorney necessary when attempting to repair bad credit?
In most cases, individuals can handle repairing their own credit. However, there are situations involving huge amounts of debt in which it benefits an individual to seek a professional’s advice. Of course, when an individual feels bankruptcy is imminent, they should consult a bankruptcy attorney. However, when debt is minor, most individuals can handle repairing their own credit.
How much does repairing credit cost?
Ideally, repairing credit should not cost any money. However, most companies that aid individuals with their credit repair charge a fee. Individuals should be leery of these companies, and check their history thoroughly before going into business with them. There are honest companies that actually help individuals repair their credit for little to no compensation, but there are also companies that act almost criminal in the way they charge debtors. Moreover, some of these companies do not even make an individual’s credit score any better.
Top Legal Services for Credit Repair in Colorado Springs, Pueblo, Castle Rock areas
You can contact Maceau Law by calling 719-633-2222 to schedule an appointment to talk with one of our bankruptcy lawyers in Colorado Springs. With our expertise, we’ll be able to best provide the legal services you need for an optimal outcome to your situation.