If you are in over your head, and your credit is so bad that you cannot get a loan and may even be facing bankruptcy, you may want to seek help from professionals. There are a number of financial professionals that can help you with credit repair:
Bankruptcy lawyers and bankruptcy advisors: Bankruptcy lawyers can help represent you in bankruptcy proceedings. Advisors can help you decide whether to apply for a bankruptcy and how to proceed once you do decide to file.
While getting a bankruptcy lawyer and filing for bankruptcy can be upsetting and can dramatically affect your credit score for many years, it can also give you a chance to start over financially and can help you reestablish good credit again in the long run.
Credit repair companies and credit counseling companies: These companies can help you by acting on your behalf with credit companies, by advising you on what you can do to repay your bills faster, and by helping you make better financial decisions.
Accountants and tax services: Accountants and tax filing services can help you make the most of your money by making sure that you do not end up overspending on taxes.
Bankers and bank officers: Most banks today want to not only help you keep your money but are willing to work with you to make the most of it. As a banking service, many banks today offer free investing advice, saving advice, and personalized meetings with bank officers that can help you figure out your money situation.
Lenders and bad credit lenders: How you deal with lenders will determine how well your credit score works. Avoiding too many inquiries by not applying for too many loans, establishing long-term business relationships with bankers, and doing business with bankers in an organized and professional way (i.e. paying your debts on time) will go a long way towards giving you a credit rating. In turn, a good credit rating will make it easier to deal with lenders.
Everyone makes some credit mistakes sooner or later - it is very rare for someone to go through their entire lives without at least a few dings on their credit risk record. Don’t beat yourself up over your mistakes - even if they are large ones. Instead, learn from your mistakes by analyzing them. Think of your credit mistakes as clues which can help you in the future to avoid the same problems:
-Do you develop credit problems because you overspend while shopping?
-Are you so disorganized that you forget to pay bills?
-Are your bills simply too large for your current income?
-Do you routinely get overcharged for things and fail to notice until much later?
Knowing what your mistakes are and finding solutions to the problems can go a long way towards helping you develop a good credit risk rating.
Bankruptcy is a serious credit problem - it is not just a “ding” on your credit report - it is a huge red flag to lenders. After a bankruptcy, you will be ineligible for credit cards, many types of credit and will even be told what you can and cannot buy. The procedure of bankruptcy can also be draining. Bankruptcy should only be chosen as a last option if you really require your debts to be forgiven because you have no way of repaying them.
