Find Do It Yourself Credit Repair Information

Your credit score is like a school report card. It can be biased, it can be wrong, it can be good, and it can be bad. However, contrary to the "permanent record" theory that teachers tend to threaten students with, your credit report only lasts about 10 years. So, a mistake on your credit report will only cost you money for about 10 years. If you want to fix errors now and save yourself thousands of dollars in interest payments on future loans, a credit repair company might be a good option. Or, if you want to prevent damage to your credit report because of bills you are unable to pay, you may want to talk to a consumer credit counselor. There are many options on the Web today for find do it yourself credit repair information, and you owe it to yourself to do further research.

Debt consolidation is a process in which a company "buys" all the debt you have from your various creditors and then you pay the firm back. Often credit card companies "sell" the debt to the consolidator for pennies on the dollar. This is how they are able to offer you such low interest rates. Credit card companies are happier to receive 40% of the money than risk seeing nothing if you declare bankruptcy. Everybody is happy. The credit card company gets paid, the consolidation company (often nonprofit) makes money on the loan they give you, and you are happy because you can save thousands of dollars.

Debt consolidation loans can be used to pay off bills. Most often you use the equity that you have built up in your home to get a line of credit. These loans have little to do with debt consolidation for those people who are struggling. These are loans against your home, often with variable interest rates. This type of debt consolidation is not done through a credit counseling service. They are usually just bank loans that you have to pay back. However, interest may be tax deductible. As you can see, it is good to own a house in the United States. However, not all of us are so lucky.

Visit the FTC's site for more information: Find Do It Yourself Credit Repair Information