How Do You Know if You Need Credit Repair

You may be surprised at the wide range of people who need to repair their credit. Even if you have paid your bills on time for years, there may be dark spots lurking in your credit report. Below, we have listed some of the major reasons that people need credit repair. Do you fall into one of these categories? If so, you should order a copy of your credit report today and find out how other people see you when deciding your credit worthiness.

Identity Theft

Have you ever had your purse or wallet stolen? If so, you may be the unknowing victim of identity theft. What happens is that after a thief has possession of your personal belongings, they use your information to open more credit card accounts but give another address on the application to divert all the statements away from you. They use the credit cards, charging them all to the maximum balance, but of course never make the payments. They do this quickly, buying as much as they can and then, out of the blue, you get a collection call for a credit card that you've never even heard of.

If you have recently lost your wallet or purse, you should immediately get a copy of your credit report to insure that someone isn't using your information to run up credit card bills in your name.

Recovering Compulsive Spenders

If you have ever had a problem with compulsive spending, you'll likely need credit repair. Why? Because all that spending has probably negatively affected your credit report. For example, if you have seven credit cards, and they are all maxed out, future creditors will look negatively upon the build-up of debt. In addition, with all that debt it's likely that you've missed some payments or have some charge backs on your account.

If you've dealt with this problem in the past, it's time get your credit report and make a plan to get your credit back in shape.

Major Medical Disasters

Have you recently had a major medical disaster? If so, you should probably get a copy of your credit report and see what's on it. When dealing with insurance companies and medical bills, it's all too easy for some to fall between the cracks and then end up on your credit report as late or missed payments. Many times, even when insurance companies are responsible for the bills, the invoice will somehow get lost or ignored, and it's your credit report that will suffer.

Mixed Up Identities

Perhaps you've always paid your bills on time, but when you recently tried to get credit, you were turned down. You should get a copy of your credit report and make sure that someone else's credit history isn't on your report. Sometimes a typo of even one letter in your name, or one number in your social security number is enough to mix up your credit report with another person's, and if that person isn't financially responsible, you may find yourself paying for their mistakes.

Summary

If you are a victim of identity theft, it's time to check out your credit report
If you are a recovering compulsive spender, you will need to build a plan to repair your credit
If you've recently suffered from a medical disaster and some bills have fallen through the cracks, you will need to start repairing your credit
If your personal information is not accurate on your credit report, you may end up with mixed identities.

Next, it's time to take a look at your credit report, the document that tells your potential lenders and employers what kind of person you are in What is In a Credit Report.