Credit Repair Services

If you have bad credit, you will find it difficult to get a home loan, car loan or personal loan. Often your application will be turned down, you may have to pay a higher interest rate and at times, your chances of getting a good job will be adversely affected. Most credit repair companies which claim to repair credit do so by either selling a do it yourself kit or by debt consolidation, both of which are not very effective for credit repair.

Unlike these companies, the credit repair services from Repair Your Bad Credit are both affordable and  effective. A nominal one setup fee of $19 is charged and the remaining amount has to be paid in three easy installments of $89 each. In case the customer is not satisfied with these credit repair services, they get their money back and an additional refund of $50 .

Bad credit repair services utilise the provisions in the Fair and Accurate Credit Transactions Act (FACT Act), and the FDCPA (Fair Debts Collections Practices Act) for protecting the rights of the consumer. They write to the credit institution through the credit reporting agency and ask them to provide proof to support a negative entry. If proof is not provided, the negative entry is deleted and the credit score improves.

Credit cards and credit score

Since most credit card issuers check the credit history before issuing a credit card, if you do not have a good credit score, it is difficult to get approved for a credit card with no annual fees. The individual will usually have to use a credit card designed for people with little or no credit. These cards usually report monthly to the credit bureaus and charge an annual fee.

After using these credit cards for some time and make payments on the amount due regularly, the credit card user may qualify for a credit card with zero annual fees and a lower interest rate. At this stage the credit card user has to decide whether to retain the older credit card and continue paying the annual fee , so that his/her credit history remains unaffected or cancel the old credit card and risk a change in the credit score.

The credit card user can contact the issuer of the original credit card , inform them that he/she have been approved for a new credit card and request a waiver of the annual fee. Some credit card companies may agree to this request, since they may not want to lose a customer and they still make money from every transaction.

If the credit card user is planning to take a big loan like a car loan or home loan soon, it may be better to retain the old credit card and continue paying the annual fee. The annual credit card fees will be insignificant compared to the savings due to lower interest rate.