||Ask the Dollar Diva
Credit repair after bankruptcy
Dear Dollar Diva,
I recently came across a law firm on the Web that is offering a
service to help erase bad things from my credit reports. My wife
and I were both laid off at the same time 3 years ago, and we tried
to stay afloat with credit cards. It didn't work, and we ended up
We are now doing well with a combined income of more
than $90,000, but we still can't get credit. Is it worth paying
this law firm $35 a month to help erase information from our reports?
Could this be a scam? Is there some way to do it ourselves?
The Diva is happy you are back on your feet and urges
you to set up a savings plan, so you will never have to go through
the nightmare of bankruptcy again. You need to chisel some promises
I will pay my bills early.
I will set up a cash account to pay for my lifestyle
for at least six months, so a future layoff will not land me
back in bankruptcy court.
I will set up an account, so I can pay cash for
those unexpected expenses that pop up regularly, like home and
car repairs, kid's braces, and surgery for the cat when it shows
up with a ripped ear.
As far as paying $35 a month to erase information
from your credit reports: If it sounds too good to be true, it probably
is. Credit repair is a slow, tedious process that takes time, energy
and commitment. So put the $35 a month in the bank, and read on.
When you're denied credit
If you're denied credit, find out why. Read Bankrate.com's
lenders in loan denial" for more on this. Is it possible that
you're being denied credit because your credit reports are missing
good information, like a record of your current timely payments,
rather than because they contain black marks? Get copies of your
credit reports and scrutinize them.
If there are no errors, disputes or omissions on
your credit reports
No one can make the credit reporting agencies remove
the bankruptcy from your credit report before 10 years is up. Not
for $35 a month or $350 a month. If a nasty credit report has no
errors, disputes or omissions on it, only time and future timely
payments will make it better.
If there are errors, disputes or omissions on your
If your credit reports need to be corrected, roll
up your sleeves and get to work. The Diva directs you to the following
stories and Web sites to help you mop-up those reports:
The Diva thinks the following books will also help
as you work on rebuilding your credit:
-- Posted: May 2, 2000