For some folks, it’s not as easy as simply paying down the balances on a few credit cards to improve their score to where they need it to be.

Sometimes, a person needs professional help to get credit scores back to where they should be.  If you have some of the following on your report, you may want to consider using a credit repair company:

• Charge-Offs
• Old Collection Accounts
• Defaulted Student Loans
• Judgments & Tax Liens
• Foreclosures
• Bankruptcies (Discharged or Dismissed)
• Repossessions
• Late Payments*

*Late payments within the last 12 months usually can’t be repaired – you just need some time to pass without any more late payments.

With Credit Repair Companies, just like Mortgage Companies, there are good ones and bad ones.  Ask a trusted adviser, or a mortgage professional for a recommendation, Google the company for feedback, and check with the BBB to get the right company to assist you.

I’ve decided that February is going to be Credit Score Improvement Month here at StartwiththeHouse.com and in Charlotte, NC. All this month, I am going to be posting tips and articles on specific things you can do to improve your credit score.

Why work on improving your credit score?

Your credit score impacts so many areas of your life.  My belief is that it is almost impossible to succeed financially today with a low credit score as the cost of bad credit is too much to overcome, short of winning the lottery.  Your credit score can impact:

• Mortgage rates
• Car loans
• Cell Phone plans
• Employment
• Medical Treatment
• Security Clearances
• Credit Cards
• Equity Lines

There are a lot of ‘Myth-conceptions’ about credit scores.  In fact, I still wince every time someone tells me “I am working on my credit score” as this usually means that what they are doing is exactly the opposite of what they should be doing to improve their score.

Several years ago, Sarah drove home this point.  Her idea of working on her credit, was to close all the accounts she no longer used.  Problem was, she didn’t use any credit cards, so she closed every account she had.  The end result was that her 728 credit score dropped to a 635 in less than a month.  Sarah was still able to buy a home, but the lowering of her score almost prevented that from happening.

Check back often this month, or subscribe to the RSS feed of this blog to learn more – I’ll be posting several articles this month with specific things you can do to raise your score starting this month.