How do I know if I need Credit Repair?

Before rushing to a financial consultant or credit specialist and proclaiming you need credit repair, it’s important to understand that credit management follows a timeline. Each phase of this timeline requires a tailored approach, and the type of help you need will evolve as your credit situation changes. Whether you're handling an open account, dealing with late payments, or navigating collections, understanding where you stand and taking the appropriate steps is crucial.

Let's review what each phase of the timeline is.

The only person you really need here is yourself! If you understand credit and how to build continue to pay your bills on time and strategically add positive credit accounts. Not sure how to do that? You can get a strategy from a financial consultant on how to strategically pay and a credit consultant to tell you which accounts you should open. Late payments are volatile at this stage and can cause your score to drop 100+ points. So "PAY THEM PEOPLE!" and pay them ON TIME.

Now may be the time to consider you need a bit of financial accountability and a more structured budget. As a preventative measure reach out to a financial consultant who can provide you with a full overview of your financial situation. Call and ask your creditor for the late payment to be removed, promise to not do it again, and actually keep your word

Credit repair is the act of disputing INACCURATE items on your credit report. Although it sucks that the account has been closed it's not reporting inaccurately because it's still with the original creditor. You lose points for closed accounts but the account is still not considered to be *derogatory* so continue to make payments until the account is paid in full. Once paid in full you can contact the bank and request for an appeal to reopen the account. If they decline try them again in 6 months when they're not so upset with you. If they approve you HOORAY! You've gained back their trust. Ensure that you don't end up back in the same place by speaking to a financial consultant and getting financial accountability.

This is when banks and credit card companies realize you're not financially responsible and it sinks in that you may not pay off the account. They may at this point begin to move your account to an in house collection status. You're still able to redeem this account. Contact the bank or company and make a payment arrangement. Your account is officially in *derogatory* status. This impacts your score HEAVILY. At this time you should contact a credit consultant to guide you through working this out with the creditor and a financial consultant to seamlessly include the debt payoff in your budget

The creditor has officially given up reconciliation. This happens when a creditor removes the debt from their books and either tries to collect through in house operations or by selling the debt off to another debt buyer. Creditors report this debt as charged off so that they can receive a tax exemption from the government. This usually occurs when there has been no payment on debt for over 180 days. You are still liable for repayment of charged off debt. Charged off debt is reported to the credit bureaus and shows to other creditors that you are likely to not complete repayment making it difficult to secure future credit. At this point it's 100% time to get a credit consultant involved

Your account has been sold to a 3rd party collection agency and is no longer with the original creditor (ie. shows up as Portfolio instead of Citibank). This is where aggressive credit repair can begin!

Credit repair and financial accountability are not one-size-fits-all solutions. Each phase of your credit journey demands a different approach and, often, a different kind of expertise. By understanding where your accounts stand—whether open, closed, late, charged off, or in collections—you can take targeted action to improve your financial health.

At every stage, being proactive is key. Whether you need to focus on paying bills on time, negotiating with creditors, or seeking professional help from a financial or credit consultant, there is a clear path forward. Remember, the ultimate goal is to regain control of your credit and build a solid foundation for your financial future. Take the steps outlined in this guide, and you’ll be well on your way to mastering your credit timeline!

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In need of assistance and don't want to deal with credit repair agencies?

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