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What is “Credit” and why would it need repairing?



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The term credit is simply the use of someone else’s money as payment for purchases. This money is loaned to you in most cases through a “Credit Card” or “Loan” and the legal contract you enter when you accept borrowing money is to also pay back that money. If you do not have the money to pay back when it is due, it is common that an interest charge is added to the money that was borrowed.


Borrowing money on credit has many positives, like ease of use, convenience, reward programs, etc. but, buying on credit can be a slippery slope for some leading to bigger issues than the original issue that the money was borrowed for.

Let’s look at getting started with credit and dealing with credit issues as they arise.

When you apply for a loan, credit card or mortgage, it is normal for the agency to check your

A positive assessment means you have a good financial background, which increases your chances of receiving the credit you are applying for and obtaining a lower interest rate on the money you borrow. A negative assessment decreases your chances of receiving the credit you are applying for and increases your chances of having a high interest rate on credit you do get.

If you have a great credit score and always pay back everything you borrow on time without interest fees, penalties, or additional charges, good for you. If not, you will want to continue reading.

Consumers with poor credit scores and a history of credit related issues need to re-establish their good credit standing, this process is called “Credit Repair”. Credit repair involves fixing your outstanding credit issues and fixing the actual credit report by taking the necessary steps in addressing omissions, misreporting, misinterpretation and/or other inaccuracies.

If there are any discrepancies found in the credit report, the consumer is entitled to dispute the errors that unjustly harm their financial health and credit worthiness. There are several laws and regulations that are designed to guarantee fair and legal undertaking of the credit report process. These laws can be used to legally and formally start the process of credit repair.

Every consumer is entitled to one copy of credit report each year from each credit reporting agency.

Investigations with regards to the real nature of the inaccuracies and errors are possible and necessary for a successful credit repair.

How can I repair my credit?

The process of credit repair can be achieved through hard work and discipline. Easy methods, which can help you get out of poor credit history, can be quite tempting. However, the easy way out may also lead to further difficulties in the future especially if they are done in a shady or even illegal way.

In case your poor credit history is caused by circumstances beyond your control, you can always request for an upgrade in your credit rating to your creditor. However, this can only be done if you were able to make amends to your credit records after the circumstances.



Creditors do not trust consumers who default on their payments. This can pose a difficulty to you in obtaining a new credit. However, once you demonstrate enduring stability in your income and

prompt patterns in your payments, the situation can improve in the span of two to three years. This way, even though there is a case of bankruptcy, you are likely to be eligible for credit cards within two years if the steady income is maintained.

Keep in mind that there are no quick fixes in repairing your credit, but it can be done and there are many reputable businesses that work with the best lawyers and personal finance consultants that are available to help you.

Always work with reputable companies with a track record of success and always do your homework to help your future self get back on the track you want to be on.

You can be independent, financially secure, and own that home you’ve always dreamed of. But not until you decide to do something about it.

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