If you have a plan to apply for a new account or loan, it’s best to check your credit report first before submitting your application.

This way, you can dispute errors right away (if applicable) or work on improving your credit score to avoid rejection. Let’s not forget that lenders always offer the best deals to customers with good to excellent credit.

Looking for the Right Credit Repair Help

If you have poor credit rating, perhaps you may consider seeking help from a trusted a credit counseling agency. However, you’ll want to stay away from so-called credit counseling organizations that promise to give your credit a “quick fix” or “instant repair”.

Some people may pay money in exchange for a credit history overhaul. But you should know that the only way you can improve poor credit is by paying off your creditors and by handling your accounts responsibly. Unless the charges in your report are false, there is no way any credit counseling agency can erase those charges from your report.

How long will you have to wait to raise a low credit score? Needless to say, this would depend on the situation or how much damage has been done in your credit. If you have too many past dues or unpaid accounts, it may take some time before you can completely rebuild your credit. Nevertheless, if you stick with your payment schedules, you should be able to see some progress in your credit rating within the first six months.

Avoid Unreasonable Credit Repair Fees

Avoid agencies who may ask excessive upfront costs with the promise to fix your credit score. Even agencies that claim to be “non-profit” may ask for deposit fees or high consultation charges.

Remember, a real credit counseling agency, especially non-profit groups must render service first before requiring any fee from a client.

Watch out for agencies that may refuse to help unless you sign up for a debt management plan. A counselor should not recommend debt management plan as the only solution to debt without first considering or trying out other options.

Avoid credit repair companies who refuse to give service to clients with small debts. These agencies could be making profit by convincing their clients to join debt management programs so they could charge them with interest rates and hidden fees.