Credit Repair After The Credit Card Debt Settlement Process Is Complete

by Mark Brinker

Steps You Can Take For Credit RepairA question that I’ve gotten over and over is, “Is there any way to repair my credit after I complete the debt settlement process?” Actually, there is.

However, before proceeding we need to be in agreement on one thing. That is, there is no quick fix to restoring your credit report.

If you just settled your outstanding credit card balances for less than full balance, you have to remember that there is a trade-off for receiving substantial debt relief without filing bankruptcy. And that trade-off is that your credit report is going to get dinged. That’s just how things work. There’s no way of getting around it. Every client that I’ve ever worked with understood this before they began the debt settlement process.

In the unfortunate event that no one told you that your credit report would be adversely affected, I’m sorry about that. But all is not lost. Let’s now discuss your options moving forward.

The Fair Credit Reporting Act

Regarding your credit score, the Fair Credit Reporting Act (FCRA) clearly states that the maximum amount of time that a derogatory item may stay on a person’s credit report is 7 years. But it does not say that it *must* remain for 7 years. Only a *maximum* of 7 years.

So here are your options:

A. Do nothing, and your credit report will gradually recover on it’s own in time … worst case scenario >> 7 years.

B. Be proactive and take steps to try and clean up your credit report sooner rather than later. Based on feedback from my clients over the years, they often report that with a little effort they’ve sees their credit score return to a respectable level within 2-3 years, sometimes sooner.

If you choose option B, you can take the do-it-yourself approach or you can just pay a reputable firm to do this for you.

Getting It Done

Now, I’m all about saving money and I’m not afraid to roll up my sleeves and get my hands dirty. But when it comes to trying to clean up your credit report, I usually encourage people to just pay a reputable credit repair service firm to do this task for them because the credit repair process is very meticulous and time-consuming (translation: an exercise in wading through bureaucracy).

Here is the firm that I have been referring my clients to for years >> www.lexingtonlaw.com

They’ve been around since 1991, they’re very affordable, they really are a law firm and they usually produce good results. They’ve got the credit repair process worked out to a science, and in my opinion they can perform this task much more efficiently and effectively than you or I could on our own.

That’s my 2 cents on how to go about credit repair.

For more information on the FCRA:

www.ftc.gov/os/statutes/031224fcra.pdf

Additional resources:

Consolidate Credit Card Debt

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