Clean Credit Repair - Did You Know That You Can Actually Hurt Your Credit While Trying to Fix It?
Surprised? Is that even possible? Well, the same medicine that helps you get better will quickly turn into poison if you consume it in excessive quantities.
The same is the case with clean credit repair as well.
If you use the right remedies with the right intentions but if you ignore the pragmatic and the practical aspect, you can be rest assured of severe problems and negative impact on your credit score.
One example is a charge off.
Once the debt is charged off, it is an indication that the lender does not expect you to repay.
The debt is written off.
The obligation is present but the fact that you were so irregular that lender had to write you off will be present on your credit report.
If you let some time pass and if you repay a debt that has been charged off, you will be surprised to find that your credit score actually takes a negative hit.
Why? Well, the fact that you have repaid your debt will make your default new all over again.
As is the case of bankruptcy, settlement and other defaults, the negative information will have less impact on your score as it becomes older.
When you repay the debt, you rejuvenate the negative information and the impact on your score is negative.
This is actually when you repay the debt and is expecting an improvement in your score.
The same is the case with repayment of debt barred by limitation.
The lender will be very happy at receiving the cash but since the debt has been barred by limitation and you are no longer bound to repay the same, it will not have a positive impact on your score.
This is a huge loss because your money would have gone towards repayment of debt but would not have resulted in any positive impact on your score.
Thirdly, focusing on repayment of credit card debt and ignoring other aspects and adding up a new credit card lines to go in for balance transfer can have a negative impact on your score.
Even as your old debt comes down, the large number of new unsecured debts that you have incurred will render the entire process useless.
This is a reason why you should make use of the services of a professional to find the best credit repair solutions that help you get real benefit.
The same is the case with clean credit repair as well.
If you use the right remedies with the right intentions but if you ignore the pragmatic and the practical aspect, you can be rest assured of severe problems and negative impact on your credit score.
One example is a charge off.
Once the debt is charged off, it is an indication that the lender does not expect you to repay.
The debt is written off.
The obligation is present but the fact that you were so irregular that lender had to write you off will be present on your credit report.
If you let some time pass and if you repay a debt that has been charged off, you will be surprised to find that your credit score actually takes a negative hit.
Why? Well, the fact that you have repaid your debt will make your default new all over again.
As is the case of bankruptcy, settlement and other defaults, the negative information will have less impact on your score as it becomes older.
When you repay the debt, you rejuvenate the negative information and the impact on your score is negative.
This is actually when you repay the debt and is expecting an improvement in your score.
The same is the case with repayment of debt barred by limitation.
The lender will be very happy at receiving the cash but since the debt has been barred by limitation and you are no longer bound to repay the same, it will not have a positive impact on your score.
This is a huge loss because your money would have gone towards repayment of debt but would not have resulted in any positive impact on your score.
Thirdly, focusing on repayment of credit card debt and ignoring other aspects and adding up a new credit card lines to go in for balance transfer can have a negative impact on your score.
Even as your old debt comes down, the large number of new unsecured debts that you have incurred will render the entire process useless.
This is a reason why you should make use of the services of a professional to find the best credit repair solutions that help you get real benefit.
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