As consumers, we are constantly bombarded with advertisements about quick tricks to improve your credit scores and qualify for a loan. Ads such as…
“We remove bankruptcies, judgements, liens and bad loans from your credit file forever!”
“We can erase your bad credit, 100% guaranteed!”
The truth is, it takes time to build credit worthiness. In fact, the Federal Trade Commission (FTC), the leading authority on consumer protection, says:
“Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.”
This is not to say that legitimate credit repair is not a viable option and should not be considered. In fact, done the right way, credit repair can be incredibly valuable in reducing the amount of time that it takes to qualify for a loan and help consumers on the path to financial freedom.
A reputable credit repair company can assist with removing inaccurate data from a credit report and consult on how to avoid the same pitfalls in the future. They’ll also be able to provide guidance on what types of things go into credit scoring and what it takes to achieve good credit. It would also be worthwhile for the consumer to seek coaching for budgeting and financial independence while going through credit repair. It is more of an ongoing process than a one-time fix and forget mentality. Even with credit repair, a consumer must be willing to correct the behaviors that led to credit hiccups in the first place!
Bottom line, if you’ve had credit challenges in the past, there are options! The sooner you begin the process of improvement and budgeting, the sooner your dream home will become a reality! It is never too late to start!