How to repair your bad credit in simple and easy steps

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Repair Your Credit To Make Your Financial Life Smarter And Better

by Michael Bovee

6 Fast credit repair tips

  1. Monitor your credit at frequent intervals
  2. Use strategic tools to build credit
  3. Contact professionals and attorneys
  4. Discuss your credit issues in Forums
  5. Repay your delinquent debts
  6. Send sample letters to negotiate the account status

Have you gone through some serious credit troubles in the past? Do you want to make a fresh financial start since lenders are not interested to give you a loan? If yes, then you need to take the following free credit repair steps.

Know the complete story

Request the 3 major credit bureaus – TransUnion, Equifax and Experian to send copies of your credit reports. You're eligible to get a copy of credit report free of cost at least once a year.
Check each section of your credit report. Are there too many wrong tradelines on your credit report? Is your credit score low because of these errors? Do you've charged-off accounts on your credit report? Is your debt-to-income ratio too high? It won't be possible to repair credit without having any idea about the problems.

List the negative items and rank them

Note down the negative information on your credit report and rank them on the basis of importance. For instance, an item that is making the maximum negative impact upon your credit should be ranked first.
Check all the 3 copies of your credit report before making the list as the same information will not be in them. In addition to that, the same information may appear on your credit report twice. Report to the credit bureaus about the duplicate item and get it removed as soon as possible.

Find out where you went wrong

Mark each and every error on your credit report. Once you've marked all the errors, send a dispute letter to the credit bureaus. Download the free credit repair letters and send them to the credit bureaus. Request the credit bureaus to investigate.
In case, the credit bureaus can't prove that you're wrong within 30-45 days, then they've to remove the errors from your report.

Pay down your debts fast

Start paying your accounts that have not been charged-off yet. This will help you bring the accounts into current status. These in turn will enable you generate positive payment history on your credit report.
It is true that negative accounts will still be there on your credit report, but the positive information will soon outweigh them.

Next, start making payments on the collection accounts. Your credit score won't increase instantly. However, potential lenders would want to check if you've paid back your past creditors. In addition to that, repay the credit card balances to bring down the credit-utilization ratio.

If you need free credit repair help, then read different articles and visit forums. Check out the quick credit repair tips and try to follow them. Ask the experts about how to fix your bad credit.

How much
debt settlement
can save you

When you can get help from credit repair service

It is true that you can do all the hardships on your own. However, if you don't want to do that, then it is best to get help of credit repair services. There are several other situations when it is better to work with a credit repair agency, including:

  • You're not good with finances
  • You don't have to take steps to repair bad credit
  • Your lenders are ready to coordinate with credit repair agency

Does credit repair services work? This is a valid question since you've to pay fees for the services. Well, the credit repair agencies can only help you under the following circumstances:

  • There are genuine errors on your credit report
  • There are unverified errors on your credit report
  • You're unable to identify the problems

How you can find the best credit repair companies

Here are some ways to find and work with the good companies:

  • 1Find out what the clients have to say about a company
  • 2Check the official website of the company
  • 3Find out how the company will help you in the credit repair process
  • 4Type "best credit repair firm or company or agency" in a popular search engine box and check out the results
  • 5Visit a reliable forum and ask industry experts to suggest some good companies.

Ways to protect yourself against credit repair scams

Read below to know about the ways to avoid scams while restoring your credit.

  • 1Avoid companies that ask you to pay fees without offering any services
  • 2Stop working with a company that doesn't let you know about the consumer rights
  • 3Never ever work with a company that asks you to create a new credit identity and report
  • 4Stay away from companies that suggest you to dispute accurate information
  • 5Steer clear of companies that don't give you a written agreement or contract

How a credit repair agency can help you

You can get help from a credit repair agency if you think that you can rebuild your credit record better with professional help. A credit repair agency can guide you to rebuild your credit score. Here are some ways how they can help you.

  • Offer financial advice: A professional agency can offer simple budgeting tips, which you can follow in order to save more every month. It can also advice you on how to avoid debt problems in the future.
  • Make a debt payment plan: The agency can also help you make a personalized debt repayment plan following which you can pay back your bills fast.
  • Negotiate with your creditors: Such an organization can also negotiate with your creditors to remove certain negative items from your credit report, which can help in increasing your score to some extent. However, in this regard, you should know that certain negative items (such as, a Chapter 7 or a Chapter 13 Bankruptcy) cannot be removed from your report before a certain time period.
The bottom line is, you can fix your bad credit on your own for free. All you need to do is take the right steps and follow the guidelines. If this doesn't help to get a fresh financial start, then there are credit repair firms to help you out.

FAQ

What is credit repair?

Credit repair is the process of clearing all negative information from your credit report. It can can be about the removal of incorrect information about your identity or details about your credit information. Repairing your credit will also help improving your credit score.

Why do I need to repair my credit?

Your credit report is used by the creditors to determine if they can provide credit to you in the future. A bad credit history and invalid account information are a hindrance for any kind of credit requirement in the future. Negative information or bad credit history can lead lenders to turn down your loan request or you might have to pay unnecessarily high interest rates. High credit score, of course, helps you in getting credit easily and at a much lower interest rate.

Will paying off my bills help in repairing my credit?

By paying off an old debt, you will not be able to eliminate the damage already made in the payment history. The negative impacts have already been made in the credit report.

How can credit score be repaired legally?

There are certain procedures that credit bureaus need to follow to show accurate information on the credit report. Many times the credit bureaus fail to do this. The company that provide information about you to the credit bureau must have proper documents to prove it. If you find any incorrect information in your credit report, you can ask the credit bureau to re-verify the information and rectify it. Under the Fair Credit Reporting Act and select state laws, you are protected by your right to dispute information.

What is credit repair?

Credit repair is the process of clearing all negative information from your credit report. It can can be about the removal of incorrect information about your identity or details about your credit information. Repairing your credit will also help improving your credit score.

Why should I get help from a credit repair company?

A credit repair company can help you to increase your credit score. You might not have the time, knowledge, expertise and experience to deal with credit reporting agencies. You must know your consumer laws before starting to repair your credit. It’s easier if you hand over the task to a credit repair company.

Will my credit score improve if I fix my credit report?

If you manage to remove negative items from your credit report, your credit score will most likely increase. You need to make all your payments on time to improve your credit score. It’s not a good idea to seek credit very frequently. Whenever you wish to seek credit, an “inquiry” is mentioned in your credit report. The lenders might feel you are having financial trouble if they see too many “inquiries”. Proper management of your financial life can retain you with a good credit score.

What are my credit rights?

There are few credit rights that no one can take away from you:

  • You are entitled to a free credit report once a year. The first credit report annually comes without any charge. For every subsequent report, you will be charged a reasonable fee. However, if you are rejected for credit, then you can ask for a free credit report even if you’ve received one earlier in the same year.
  • You’ve all the rights to know if anyone has made any inquiry about your credit and about all the times credit reporting agency has pulled out your file.
  • Your credit report can be affected because of unfortunate incidents like sickness, divorce or loss of job. You’ve to write a personal statement stating the reasons leading to it in not more than 100 words.
  • You’ve the right to know the reason of why you were refused credit.
  • You’ve the right to transfer your credit report in case you are relocating.

Last Updated on: Thu, 15 Oct 2020