In Florida, credit repair opportunities are used to increase the consumer’s credit rating. Consumers need a higher than average credit score when buying a home or automobile. Establishing new lines of credit are also difficult if the consumer’s rating is inferior. Reviewing what to expect from a credit repair service in Palm Bay FL shows how a credit counselor helps the consumer.
Assessing the Consumer’s Current Credit Reports
The service provider takes a look at all three of the consumer’s credit reports. First, they consider the credit scores from each bureau. Next, the complete an assessment of all debts. The consumer reviews their debts and identifies any listings that don’t belong to them. Any listings that are closed accounts that have appeared on the reports longer than seven years are removed, too. The consumer files a dispute with each credit bureau to remove the listings.
Managing Negative Listings
Next, the service provider creates a plan to manage negative listings. First, all charged-off accounts are addressed. After an account is charged off, the creditor files an insurance claim to collect on their losses. The account is sold to a collection agency. The consumer has two choices for managing the accounts. Either their representative negotiates a settlement offer or the consumer allows the account to remain on their reports for seven years. If they want to repair their credit now, then settlement offers are the best strategy.
Paying Off Smaller Debts First
Smaller debts that appear on the credit reports are paid off first. If they are on an installment plan, then the consumer pays a little extra on the debts until they are paid off. The credit counselor could also create a budget where costs are reduced, and the money is used to pay the smaller debts off faster.
Adding More to Existing Payments
Mortgages are paid off faster if the consumer adds even as little as $20 extra a month. The credit counselor reviews the current financial status of the consumer. Reviewing their income and monthly obligations show how much the consumer could add to their mortgage payments.
In Florida, credit repair opportunities make it possible for consumers to improve their credit rating and eliminate debts faster. The services prevent bankruptcy and help consumers retain more control over their finances. Consumers who need Credit Repair Service in Palm Bay FL learn about about G.I. Tax Services now.
