A Good Credit Score

A Good Credit Score

How to Repair Your Bad Credit

Today, for any thing you do, your credit score plays a very important part. You need a good credit score to qualify for a loan, credit card or mortgage. Even when looking for a job, a new apartment, or even insurance quotes, your credit score is required. It is important that you have a healthy credit score. A bad credit rating will make it difficult for you to ask for a home loan or a car loan. Therefore, it becomes imperative that you repair your bad credit, and do it fast before it is too late!

The first thing you must do is to get your credit report from the three major credit bureaus: Equifax, Experian, and TransUnion. Go through the report looking for anomalies, which you feel should not be there. When trying to repair your credit, remember not to falsify facts. This will later get you into further legal trouble.

In my personal experience it actually feel much worse than it is. For example when I was near bankruptcy, I was hesitant to call my creditors and ask for relief, but in all cases, they were so impressed that I was proactive, meaning that I called them before I missed or was late with any payments that they extended my deadlines and/or reduced the interest rates.

Use the following tips to get your credit repair headed in the right direction.

Methods For Credit Repair

Here are some ways through which you can repair your bad credit:

  • The hardest pill for credit repair to take is to stop using credit cards immediately. Put all of them away where you cannot reach them in a hurry. For emergencies, you may keep one with you. With a bad credit score, you may not be able to get another credit card in future.
  • Make sure you fully understand your financial position, especially now that you have a bad credit rating. You need to know the cold hard facts to try to get out of debt.
  • Look for errors and omissions in your credit reports. As high as 70% of credit reports have errors in them. If you find any, write to the credit bureaus to get them rectified. Keep a record of all correspondences you have with them. Once you receive a corrected report from the credit bureaus, request them to send copies to those who sought a report on you, especially in the last six months. If certain information, such as additional information about a repayment of a loan, good credit, etc, can help in your credit rating, you can, legally, ask it to be added to your report.
  • Communicate with your creditors. All they want is their money back. They can plan your re-payment schedules with you. As long as they feel you can pay, they will not report to the credit bureau and your report will not be spoiled.
  • To improve your credit rating by eliminating your bad credit, you must have a plan of action. Plan how to pay your bills, see if you need to take a second job, or go for counseling, or file for bankruptcy. Whatever you need to do, decide, and take action.

Credit reduction is the best method for credit repair. Watch out for credit repair service scams. The lower the credit and debt you have the lower would be your financial stress.

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