Question: Some of my friends are suggesting that I should consult the credit repairing companies while others are saying that it may not help? What I should do?

Answer: According to me you should go for bad credit repair yourself rather than contacting a credit repairing company because they may be making false statement and trying to take advantage of you.

If you really want to get your credit repaired then the first thing that you should do is order credit report from all the 3 credit reporting agencies. Then analyze your report properly. If there are any negative remarks that are false then ask them to correct and if the remarks are true then only improved habits can change that. Although late payments and charged off accounts remain on your credit report for 7 years and bankruptcy for 10 years.

You should figure out where you stand. We know how boring it can be to focus on budgeting and net worth statement. But it is equally important that you know where exactly you stand. Don?t surrender your existing credit cards but you should stop using it because the immediate goal repair your credit and get out of debt.

After you have done all this then you should sit down and devise plans regarding how you will pay the existing bills on time if that not possible try to pay at least the minimum balance with the 30 days after the bill gets due. And if you are not able to do that then seek for credit counseling or file a bankruptcy for a fresh start.

You may have bad credit because of some omitted information on your credit report because the creditors are not required to report information to the credit bureaus. But you can add those information on your credit report that you think will help you to improve your credit score.

According to some experts you can write a letter up to 100 words to the credit bureaus. With the letter you should include the credit report and the information you want to add to the credit report. Also enclose your account number so that the credit bureaus can verify the information that you have sent.

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By Mortgage Mentor.