Credit Repair Methods
Credit repair is an umbrella term used for numerous methods used to improve a person’s credit score.
One of the most common methods is through credit dispute – having inaccurate information on your credit report that is harming your score, removed from your credit history. Inaccurate information may show on someone’s credit history if they were (or are) a victim of identity theft or were added to someone else’s credit account as an authorized user.
Although it shouldn’t be reported, many times information about credit usage (amount borrowed, payment history, current balance, etc.) is reported to one or more of the three credit bureaus for an authorized user. Sometimes, this information (like on time payments or low balance) can help your credit score. More often than not, it can do damage to your score. For example, if the account holder is ever late with a payment or uses the majority of the card balance, it can reflect poorly on you as well. Also, debt reported as an authorized user can cause a poor debt to income ratio which can make getting a personal or home loan difficult and can affect your credit score.
Technically, a credit dispute can be done by yourself. However, you will have to file a dispute for each error on your credit report to each of the credit bureaus it shows up with. This can be a tedious and time-consuming process, which is why many individuals prefer to have a credit repair company handle it for them.
Another major damaging aspect to your credit score may be the many lines of open credit and/or loans you have. Borrowing from multiple sources, even if you make the monthly payments on time can look bad on your credit history report. By consolidation your credit card debt, student loan debt, or personal loans, you can greatly improve your score and your credit worthiness. In addition, debt consolidation usually provides individuals with a smaller payment and less interest overall!
For certain student loans, opting for debt consolidation may open the door for more benefits of debt relief. Some student loans, like personal loans taken out to pay for extended education cannot be “forgiven”, or discharged, under certain federal relief programs. However, some consolidation options are eligible for those debt relief programs. For more information about consolidating your student loan debt, reach out to one of our loan specialists at (813) 842-2067.
Student Loan Forgiveness or Default Removal
For some qualifying individuals with federal student loan debt, there are several student loan forgiveness programs that enable borrowers to discharge (eliminate) some or all of their student loan debt. To read more about Student Loan Forgiveness, click here.
Sometimes, especially when individuals are not aware of student loan debt relief options, borrower’s default on their student loans. This means they missed multiple payments of their student loans and the debts have gone to collections and the defaulted status of the student loans has caused serious damage to a borrower’s credit history.
For those who have defaulted on their student loans, there is a chance at a reprieve and to repair your credit following a defaulting on your student loans. For more information on default removal for a student loan, click here.