Fixing A Bad Credit Rating Starts with Education

By: Stuart Hunter

There is an institution in today's economy that impacts everything from your ability to buy a house, get approved for automobile insurance, and land a job with certain companies. It's an element that affects each and every adult in this country but it is something that is very rarely addressed in schools and is not completely understood by a huge portion of the people it impacts.

What we are talking about here is the consumer credit system. This is the system where credit reporting agencies (credit bureaus) receive, organize and record financial information about consumers provided by a variety of sources that is then sold to lenders, employers, and others. This information is used to make decisions about whether or not you are a dependable, credit worthy individual.

After only a short time dealing with banks,credit card providers and other lenders, most learn the rudimentary basics of the credit system. They know their credit files contain information about them and they know it is advantageous to have a high credit score. They also learn through a constant bombardment from credit bureau advertisements that people can order copies of their credit reports. But from there, functional knowledge of credit dropps off and many of the things people believe are in incorrect or incomplete interpretations of the facts.

Many do not know how a credit score is calculated, what steps they can take to raise their credit score, the myriad of resources they have for disputing questionable credit listings, and how the law protects their right to receive fair treatment from credit reporting agencies, creditors, collections agencies, and credit repair organizations.

Whether by accident or through design, much like how the pigs exerted control in Animal Farm, this lack of knowledge leaves people at the mercy of, and frequently victims of, the organizations whose revenues are tied to consumer credit. When left unchecked, even upstanding lenders will err on the side of making more money. As a result there are people are being charged exorbitant interest fees that pad the pockets of lenders because these people are not informed enough about the credit system to do anything about it. They are allowing themselves to be taken advantage of by those who, intentionally or not, are taking more of their money than is just.

The more people understand about the credit system, the more empowered they become. Credit scores are a powerful and necessary tool, but as with all sources of power, it must be kept in check. Those who understand how it functions are the ones who will be able to enforce their right to a fair and accurate credit score.

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Lexington Law, the trusted leaders in credit repair, believes learning about your credit is the first step in improving it. To assist consumers, Lexington Law has provided credit education resources including videos, lawyer interviews, expert articles and more.

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