Updated: Sep 1
Before you hire a company to repair your damaged credit profile, you should first follow this advice and see what you can do yourself before paying anyone else. Many companies say they have some kind of proven method for improving your credit score, and some of them really do work. However, I found that you can obtain great results, you just have to put in a little work.
To repair bad credit, make sure you pay more than the minimum payment amount on your credit cards each month. It is always best to pay your balance in full, but sometimes this is not possible. Paying over the minimum balance saves you money on interest, and it shows the companies that you are reliable because you're not abusing the money they leant to you. Also, be sure to never close your card unless you absolutely need to - Having older cards helps your credit history in a good way.
Perhaps the most important tip you need to understand when repairing your credit is to understand where your credit score comes from and how it is calculated. This way, you will realize what areas are affecting your credit score the most and which areas you can improve in to help raise your score.
If you need to dispute a claim with your credit bureau, send them a letter. If you're not sure what letter needs to be sent. You can send us an email firstname.lastname@example.org detailing your situation and we can provide you with a customized letter that best suits you. Remember you have an option to file a dispute online through Experian, Equifax, and Transunion, but it may not be as effective, so sending a personalized letter to the creditor might be your best option.
If you've examined your credit report and can clearly see errors, contact the reporting bureau immediately. Although each report may contain different information, the reporting agencies will contact each other with any updates to the information that may be incorrect. The reporting agency should also notify you if they've fixed the error, and send you an updated copy of your credit report without charge.
An important tip to consider when working to repair your credit is to only apply for a loan when you are almost certain that you will be approved. This is important because you may lessen the chances of getting approved in the future if you are rejected, and you want to keep your inquiries as low as possible.
Credit repair scams are a dime a dozen, so understanding what is legit and what isn't is key in finding someone to help you with your problems. For example, if a company contacts you but doesn't tell you about your Fair Credit Reporting Act rights, then they probably aren't a trustworthy business.
There usually isn't a way to get around negative items on your credit report unless you contact the creditor directly. There are many companies that claim they have the ability to do this but really they just contact the creditor and if they don't hear back from them the debt is removed. Once the creditor reports to the credit agency, the negative item will show on your report again.
WHAT IT ALL BOILS DOWN TO
Your credit may need to be repaired, but you are the best person to fix it. After all, you're the one who created the situation, to begin with. Give yourself power again by setting your credit right. You'll save so much money on interest, by having a higher credit score. More importantly, make sure to subscribe to our newsletter so you can continue to learn so that you do not ever deal with bad credit again.
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