Bad Credit Repair - How To Beat The Bank Blacklisters

Bad Credit repair is something most of us take seriously if we find ourselves with a bad credit report.

However, did you know that fighting your bank for unfair charges can damage your credit rating leaving you with the daunting task of repairing your credit. Current account holders in England and Wales who have already won back thousands of pounds now face a new legal challenge to prevent their accounts from being closed and also to dispute bad credit ratings recorded against them because of their original dispute against their banks. These banks including NatWest Abbey and Nationwide have passed information to major credit bureaus concerning their customers. This information includes overdraft transactions and such like.

By reporting to these credit reference agencies, the banks have wiped off important credit score points from their clients credit ratings, effectively causing them to be blacklisted. Since the "Fair Play On Charges" campaign began, the Office of Fair Trading in England has started investigation into what the real cost of administering unauthorised overdraft transaction is.

These costs should only reflect how much it cost the bank when a customer is allowed a payment even when he is in the red. Similar investigation, earlier on this year, into the extortionate charges by credit card companies has resulted in a £12.00 cap to all late charges issued by credit card companies as opposed to the £30.00 most of them were regularly charging. Indeed, these charges are lucrative for banks and they are likely to hold on to it to beef up their profits. Thus any attention from the Office Of Fair Trading is certainly unwanted.

Other banks like Alliance & Leicester have closed customer accounts on the grounds that they have not stuck to the terms and conditions under which the accounts were opened. This is disastrous as not only it in any company's right to refuse service (within the boundaries of law) but this closure will certainly be lodged in their credit histories. The banks also argue that they have the right to keep this record as when a customer refuses to pay their overdraft charges they are in breach of their terms and conditions.

Bad credit repair can be daunting but not impossible. Some of the tips for avoiding being blacklisted include first and foremost avoiding any charges of any sort even if your account is in the red. This is a detail that must be rigorously observed as it could mean not making that last-minute pizza order or going to the movies and such like. Going over just £10-£20 over your overdraft limit can cost you more than that and it is simply not worth it.

Another tip is to obtain your free credit report and make sure that it contains accurate information. Every credit consumer is entitled to at least a free credit report a year. This is vital as it can also help prevent identity theft.

When you are shopping for credit, get a quote before making an application. There's not need to pay money to repair your credit. This website is all about repairing bad credit yourself. There are no shortcuts to bad credit repairs. And it all can be done by yourself.

As a current account holder it is important to learn the ropes of being a savvy credit consumer. At best it is good to use credit wisely. If you end being the victim of unfair charges then it necessary to educate yourself of the realities and perhaps join consumer action groups. The more in number there are against the banks, the more favourable it is that the courts will rule in your favour. Banks generally hate bad publicity and are willing to make payment at the eleventh hour just before court proceedings. While this may seem a good option, remember that banks may pay you monetary compensation now but are likely to leave you in need of a bad credit repair

See also:

Identity Theft Worksheets

Five Smart Ways To use Your Home Equity Line of Credit