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Article - How can I repair bad credit.
By David J. LaLonde
There are numerous ways to improve your credit rating. Many companies offer products that will help. It's important to understand the difference among the credit repair products
Law Firms
You can hire a lawyer to dispute items on your credit report that are invalid. If the items on your report are valid an attorney may not be able to help. No one can legally remove accurate information from a credit report.
Lawyers are often used to file a bankruptcy on you behalf
Chapter 7 Bankruptcy is the most common type of bankruptcy. It is a liquidation type of proceeding (as opposed to a reorganization proceeding). All of the debtor's assets, with the exception of "exempt" property, will be sold, and the proceeds will be used to pay their debts. If the proceeds are not enough to pay off all the debts, unpaid amounts on "dischargeable debts" will be discharged.
Chapter 13 Bankruptcy is what is known as reorganization bankruptcy. Chapter13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.
Debt Consolidation
This option is normally offered to home owners only. If you are not required to take out a loan for the debt consolidation the company is probably offering consumer credit counseling. If you decide to refinance or use a home equity line of credit to consolidate your bills make sure you can afford the new payment comfortably. If you fail to make the payments on time you could loose your house.
Do it Yourself Kits
There are numerous self help kits on credit repair and deleting items from your credit report, again, no one can legally remove accurate and timely negative information from a credit report. Most of the techniques contained in the do it yourself manuals rely on the non action of creditors to have items removed. If you file a complaint with the credit reporting agencies and your creditors do not respond in a timely manner the agency may remove the item from your credit report.
Consumer Credit Counseling
Consumer credit counselors contact your creditors on your behalf and negotiate with them to lower your monthly payments. This activity is similar to a chapter 13 bankruptcy in that the fact that your in credit counseling (or bankruptcy) shows up on your credit report.
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erase, fix, or repair bad credit.
