While The Credit Score king can provide the solution to financial problems in many instances, it isn’t always the best option. In some cases, credit restoration services can help you rebuild your credit and avoid bankruptcy completely. If you want to learn more about credit restoration services and how they can improve your financial outlook, continue reading to discover more about what these services offer and how they can help you get out of debt more effectively than bankruptcy alone can provide.
Chapter One - Know Your Rights
One of the first things you need to know is what your rights are. While there are many ways to restore credit, the key is to do your homework before you start trying anything. For example, if you want credit repair services, it is important that you only work with a reputable agency that will report an update by the Credit Repair Organizations Act. If you want more information on how these agencies work and the differences between them, take a look at this FAQs about credit restoration services post. It covers everything you need to know so you can get started on your journey back towards better credit!
Chapter Two - Master The Disputing Process
The first step in the dispute process is reviewing all your credit reports. Not sure how? There is a free site that can help you do it and get your credit scores. After locating all three of your reports, it’s time to find the negative items and dispute them one by one. It’s important to remember when disputing an item on your report that you need proof that what they say isn’t true – so make copies of anything they send as part of their investigation. If the item was late payment or a collection account, make copies of every document showing what happened – receipts for payment arrangements made, letters sent requesting late fees be waived, etc. In cases where accounts have been closed due to non-payment but show up as delinquent on your report for months after closure, provide documentation about the account being closed (and copies if possible). And finally, in situations where you were contacted by debt collectors before making a payment arrangement and then fell behind again – don’t let them bully you into paying more than once!
Chapter Three - File Government Complaints
If you feel as though your rights were violated by a creditor, you may want to file a complaint with the FTC and/or your state attorney general. The FTC can enforce compliance by creditors and credit grantors with FTC law. The FTC’s Federal Trade Commission Act prohibits unfair or deceptive acts or practices in or affecting commerce and you can get more information about how this applies to debt collection agencies at ftc.gov. If you’re dealing with debt collectors from more than one state, contact the bureau of consumer protection at your state attorney general’s office or visit the National Association of Attorneys General website for information on your local AG office.
Chapter Four - What Happens Next?
If you’ve been contacted by a debt collector, chances are they’re on the phone to collect on a legitimate debt. The first thing to do is verify that they have the right person and that you can repay the debt; if you have neither, find out how they got your information and contact them again only when you’re in a position to pay.
Finally, ask for an explanation of all the fees being requested. If you don’t understand something or if it’s excessive, talk with them about it before taking any action. They may not be able to lower those rates but may be willing to negotiate some type of payment plan.
If you choose not to work with the debt collector, know that there will likely be consequences later on. Hiding from creditors doesn’t work very well as most can get a judgment against you, garnish your wages (after getting approval from the court), or seize your property.
Chapter Five - Handling Debt Collection
Collection accounts can be a really difficult thing to handle. Collectors may become aggressive and it can be hard to distinguish legitimate debt collectors from scam artists. There are steps you can take, however, that can protect your finances and your credit rating when faced with this type of situation.
Understand what debt collecting is all about – Debt collectors purchase delinquent debts for pennies on the dollar and then try to collect on the full amount that is owed. This makes debt collections one of the most lucrative industries in America, so don’t be surprised if they are relentless in trying to recoup what they owe. With that said, there are ways you can work with them in an attempt to preserve your credit score- even if you want out of the whole deal.