The Basics of Repairing Damaged Credit (for Beginning Real Estate Investors)
Rey Villar (GMail)
As with love, time heals the wounds of damaged credit.
By law, adverse consumer credit account entries may only remain on a person’s credit report for seven years. Bankruptcies, foreclosures and most judgments remain for ten full years—often from the date of discharge (not initial filing). Debts to the government can remain much longer, sometimes until adequately settled.
If you cannot wait seven to ten years, don’t despair. There are legal ways to repair and rebuild your credit—regardless of how damaged it is. This article will discuss three steps all consumers must understand when trying to repair damaged credit:
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Don't Panic
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Set Goals
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Repair Your Credit Yourself
Don't Panic
Don’t panic. If you cannot help panicking, try to keep reminding yourself that you must avoid making rash decisions until you are calm enough to think clearly and objectively. This may be difficult advice to accept, especially if you are in the midst of financial distress. But, it’s important for your long-term financial health that you try to attack your credit situation with clear, steady thought. Avoiding rash decisions includes the following tips:
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