Repair My Credit – Seven Ways You Can Do This
There’s nothing worse than applying for a mortgage, car loan, or charge card and getting denied due to your poor financial history. Whether your bad credit is due to past irresponsibility, or factors out of your control, such as unemployment, illness, or an emergency, the effect is the same: your past financial mistakes are harming your financial future.
The good news is that negative information does not stay on your record forever, and with some discipline and good financial planning, you can repair your report and get on a more secure financial footing. Taking steps to improve your record not only gives you access to cash when you need it, but also ensures you get the best rates possible when you do get approved for a new accounts.
1. Request a copy of your credit report. Studies show that almost 70% of all reports contain errors – and these mistakes could be hurting you. You’re entitled to one free report from each major reporting agency each year, but you can also request a copy if you are denied new accounts due to information in the report. Carefully examine your report for errors, old or incorrect information at least once a year, and dispute inaccurate information with the reporting agency.
2. Contact the lenders for help. If you’ve fallen behind on your bills, or you have a number of accounts in collections, talk with them about a payment arrangement or a settlement to reduce your debt and keep your account current.
3. Pay your bills on time, every time and always make at least the minimum payment. Potential lenders look at your overall payment history when making a decision to open a new account, and a solid payment history shows responsibility. Be sure to pay your utility bills, rent, and other obligations on time as well. Some companies have started reporting your payment history to the bureaus as part of an expanded report, and missing an electric or cable payment can influence your score.
4. Reduce your debt. Set a strict budget, and stick to it, devoting as much money to paying off your balances as possible. Do not close accounts as you pay them off, though. Closing zero-balance accounts reduces your overall available credit – and lowers your score.
5. Once you’re up-to-date and have low or zero balance on your existing accounts, open a new account to rebuild your history. A card with a low limit, or a secured card, that you repay every month can help you develop a consistent payment history.
6. Avoid opening too many accounts at once, though. Lenders often view multiple accounts opened in a short period as an indicator of financial trouble or irresponsibility.
7. Contact a nonprofit credit counseling service for help. Avoid companies that offer to fix your report for a fee; seek a service that will help you come up with a plan to manage your debt, create a budget and improve your report over time. The U.S. Department of Justice and the FTC both offer a list of reputable counseling services.
For a free credit consultation call 1-800-230-1954 or to learn more about how to repair my credit and to learn about how professional credit repair services can be helpful in the process visit us.