SIX Ways To Repair Bad Credit

According to recent research,there are about 30 million Americans with poor credit rating. Do you have a poor credit rating? If so, you are one of millions of Americans with the same problem.

Here are some tips guaranteed to 'repair bad credit'. There is no 'microwave' way to credit repair, it can take some time, but complete and better credit score is possible.

The First Step

The first thing you need to do is find out what credit information is being held about you. This is easy and inexpensive. For under $10, you can get your credit report from one of the three main credit reporting companies: Equifax, Experian, or TransUnion. Also, each credit card consumer is entitled to one free credit report annually. In addition, if you have recently been denied credit, you can get a free report from the same credit bureau the lender used to reject you as long as you do so within 30 days.

What You Don’t Need

You don’t need a repair clinic. Why? Because anything legal that a clinic can do, you can do just as easily do without the cost of such ‘professional’ help. And besides there is no legal way to repair your credit. Anyone, who claims to know loopholes and shortcuts are merely out for your money. They may even get you into further trouble by having you fudge the facts or creating a whole new file for you.

Yet more actions to take include the following

#1. Put an immediate stop to the use of your credit cards except for emergency use only. There is no need to close the account as that can further damage your credit score. To add to this, with a poor credit rating, you may find it more difficult to get a credit card in the future, therefore it is important to keep at least one account open, then you won’t have to worry about applying.

#2. Find and Resolve Any inaccuracies. Up to 40% of all credit reports have errors in them. Thus, it is important to look out for any and also examine it carefully for any fraudulent transactions or worse still identity theft. If you find that your credit report contains some inaccuracies, it is critical to write immediately to the credit bureau in question and include all the necessary details.

Send it by certified mail so that you can keep track of who you wrote to, when you wrote, and who received the mail on the credit bureaus end. Then request the credit bureau to send a corrected report to anyone who has asked a report on you in the last 6 months.

#3. Request Inclusions Of Any Information Omitted. By law, you are allowed to add information to your report which you believe will help your credit rating. This might be extra information about a repayment of a loan, good credit you have with companies that do not report to the credit bureau, salary increases and such like.

#4. Develop A Financial Plan Or Budget. Whether you determine to pay your bills down little at a time, go to credit counseling, take a second job, or file bankruptcy (this should be the last resort!), you need to make a financial plan or budget and stick to it.

#5. Talk to those that your creditors. They do not want you to default or quit paying. In fact, most creditors will work with you to get a reduced payment schedule. If you can keep them from reporting you to the credit bureau, then it won’t hurt your credit. The catch here is this: be sure to stick to the new negotiated plan – they won’t renegotiate if you fail to comply.

#6. Be Patient. If you diligently put into action some of these plans, your credit score could improve within six months. After 7 years, most items will be dropped. This is good news if you are working to correct your credit. As each year passes, more and more black marks will be erased and more good items will be included.

Follow these steps and you will find that your credit rating looks better and better each day. And soon you will have a credit rating to be envied!

See also:

Do It Yourself Credit Fix And Credit Repair Resources

Fast Credit Repair Kit