In an agressive debt settlement program and plan to be out of debt in 12 months (already 3 months in). They have already settled one of my credit card accounts with two more to go. I’m paying in about $1800 per month to the escrow account. I just want to be debt free! It does seem to be working – but we shall see… Assuming it works, I worry about my credit score. I have some consumer credit cards that I’ve been using and paying off each month and am current on my car/rent/utility payments. I’m not sure what I can do NOW to improve my credit and what I can do post-settlement to restore my credit. I had an awesome score and was super responsible. But I lost to the credit game and couldn’t keep up in the end. It was this or bankruptcy. I need tips that I can do today to help with my future score and I AM responsible. I just had a series of bad knocks that maxed my cards out.
What are your opinions on credit repair services? I’m in a settlement program that will end in 9 months and it does look like I’ll be “in the free and clear” though my credit score took a huge hit from the process. Any advice on getting that back up to the 700 range I used to have?
Credit repair services are a waste of money. The core of the issue is that playing the game to try to get accurate but negative information removed is problematic. First, if you remove negative but accurate information and then used the untrue credit report to apply for credit you have just committed credit fraud. Second, there is no telling when that removed information will simply reappear on your report.
Just because information is bad doesn’t mean it gets wiped off. It’s like a report card in school. If you got a D on a test it doesn’t vanish. To increase your GPA you get better grades moving forward.
The same is true in the credit report game.
If you follow the suggestions in this article you’ll be fine and have a better score, the right way, in a relatively short period of time.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.