Delaware has a lot to offer ranging from picturesque views to horse races and casinos galore. While there is plenty to distract you, for those who have bad credit, life is infinitely more difficult. There was a time in the recent past where credit was passed out like candy to consumers who were itching to spend. This led to more people than not using multiple credit cards for both luxury purchases and their everyday needs. Over time, unchecked spending can lead to more debt than you can repay which in turn will result in late payments, overdrawn accounts, and negative marks on your credit report.
If you are dealing with bad credit due to excessive credit card debt, a Delaware credit repair company can help. They can work with you to consolidate your credit card debt, get rid of late payments, and put you back on the path to healthy credit.
Delaware has an average cost of living. It’s only slightly higher than the national average. Similarly, credit card debt in Delaware is also just over the national median, sitting at $5,400, around $200 over the US average.
Credit scores in Delaware are average, sitting at 714, which is the same as the national average. While this is a good score, there’s a lot of room for improvement. If your score is around this number in Delaware, you may want to check out credit repair to potentially help you improve your credit score and access better credit options.
Delaware has a state law that dictates a few specific requirements for credit repair organizations that operate within the state. Delaware Code 2401 places a few boundaries around the credit repair industry, including requirements for:
Delaware’s state laws are quite comprehensive compared to many other states. They build on top of the existing federal law, the Credit Repair Organizations Act (CROA). This law deals with misrepresentation of information about credit repair services, specific billing practices that must be followed, and how contracts should be set up.
While Delaware does require credit repair organizations to be registered, there’s no requirements for these companies to be law firms or to have lawyers doing the credit repair work. This is a service that doesn’t require legal expertise or certification, and can be done by anyone. Technically, you can even do it yourself, but considering the length and complexity of the process you’re usually better off working with a credit repair organization instead.
There are lots of reputable credit repair organizations to choose from with the state of Delaware, giving you the flexibility to work with a company you can trust.
How is credit repair done in Delaware? Here’s the basic process:
There are 3 major credit bureaus that record credit events for everyone in the US. Certain businesses in Delaware are required to report to at least 1 credit bureau, so you need to request a report from all 3 separately to make sure you get a complete picture of everything that goes into your credit score calculations. Every 12 months, you’re entitled to a free credit report from each bureau, but you can also pay for one if you’ve already gotten your free report within the last 12 months.
After you’ve received your credit reports from all 3 bureaus, you need to take some time to go through all the entries and look for inaccuracies. Most inaccurate information is the result of entries put on your report mistakenly, but some can be a result of fraud. Whatever the case, you should be able to see inaccurate credit report entries quickly if you look at your reports closely.
Dispute letters have to be sent to every credit bureau with incorrect information on their reports. If you want the information changed or removed, you need to send these letters to each bureau individually, detailing each specific issue you discovered. Once these letters are received, the credit bureau must investigate the entries mentioned to see if they’re legitimate or not.
Note: Credit repair is a process that anyone can do for themselves, but the simplicity of the steps is deceptive. This process is tedious, involving highly specific dispute letters and a lot of follow ups to keep the credit bureaus on task. Credit repair companies take the hassle out of the process for you, handling everything from start to finish.
If we asked you to write down your credit score right now, would you know the actual number? For those with less than perfect credit, it is common to not know the score and this is part of the problem. Knowing your score is important because your credit rating plays a big role in your life and your ability to secure financing, land a job, or even get approved to rent a new apartment. For those suffering from less than perfect credit who want to improve their score, the first step is getting a copy of your credit report so that you can make changes that will have a positive effect on your life.
Working with a local DE credit repair agency will help you repair your credit and get a handle on your debt in a variety of ways. One way to get started on fixing your score is by getting rid of bad debt and consolidating the rest. Consolidating your credit cards can help you save money and pay off your creditors faster, but it also has an additional positive effect. Your credit score will increase after starting your consolidation program and will end up substantially higher upon its completion.
Of course, just like any other repayment program, the key is payment consistency. If you miss payments, make late payments, or otherwise wise stray from your consolidation plan, your credit score will suffer and in extreme cases, you may even be disqualified from participating in the program further. A quality credit repair company will work with you to stay on top of your bills and help you track your progress until you have reached your credit score goal.
Credit card consolidation can help get your credit and your financial health back on track, but you should also take steps to avoid falling back into the same traps that led you to consolidation in the first place. Some of the most common tips are to avoid impulse and unwise spending choices, limit your expenditures and try to stick to your budget. As your credit score improves, you may be tempted to open another line of credit as pre-approval offers start to pour in. Avoid these offers since bad debt is what you are trying to eliminate. Instead of using credit, use cash. This is a good way to see how much you are spending and limit the amount that you spend.
While you can work on your credit on your own, consolidations are best left to the professionals. A Delaware credit repair company will be able to help negotiate an affordable rate and manageable payment terms on your behalf. Also, there is less stress involved when you leave the endless hours of phone calls and waiting on hold up to someone else. Credit repair agencies also know the tips and tricks used in the industry to help get late fees and many other charges eliminated so you will end up saving money as well as saving time. Moving your balances all to one or two accounts is also not an easy feat. Once your balances are moved, a credit agency will work to have the original accounts removed from your credit report to help boost your score.
Credit scores are based on a few different factors, with one of the largest being your credit history. If there are mistakes on your credit report, they could be reflecting poorly on your credit score and causing it to be lower than it should be. Removing these incorrect entries is vital to keeping your credit score as high as possible, since inaccurate data involving missed or late payments can have a catastrophic impact on your credit score.
The time it takes to complete credit repair will greatly impact the total cost for you. Credit repair is paid at a per month rate, with the average amount ranging between $95 - $195 per month. Although this is average rate, you can access credit repair service in Delaware for anywhere between $79 - $199 per month, with most companies charging a one-time setup fee in the beginning of the contract period.
Even though credit bureaus have to respond to your dispute letter within 30 days, the process for credit repair can take between 3 – 6 months. It’s a long process that often involves a lot of following up with each credit bureau until the issue is fully investigated and resolved.
Credit repair can be done in all 79 cities in Delaware, as well as every town and county. There are no location-specific restrictions placed on credit repair companies in the state. While Wilmington, Dover, and Middletown probably have more credit repair organizations within their city limits, they can be accessed by anyone statewide, including in smaller cities like Kenton, Port Penn, Farmington, or Odessa.