It doesn’t take much to get bad credit. You can ruin your credit score before you even realize you have one, or before you realize how important it is to have a good credit score.
Your credit score is a reflection of how you’ve handled your financial obligations. It’s based on information that’s been reported to credit bureaus by companies, like credit card issuers and lenders, you have financial accounts with. If you’ve paid your bills on time and managed your accounts wisely, you’ll have a good credit score. But, if you’ve made some mistakes — like not paying on time or not paying at all — you’ll end up with bad credit.
If you have bad credit, then you know how tough it can be. Bad credit makes many things difficult, impossible, or more expensive. We all know that banks check credit scores before they give you a credit card or a loan. That means the process of buying a house or car is more difficult when you have bad credit. Even renting an apartment is tough without a good credit score. Insurance companies often charge a higher rate for drivers that have bad credit scores. Utility service providers check your credit to decide whether you should pay a security deposit. As years go by, the list of companies who check your credit will probably grow instead of shrink.
Why Pursue Credit Repair?
No matter how bad your credit is right now, the damage isn’t permanent. Credit repair allows you to fix the mistakes hurting your credit and improve your credit score. Repairing your credit is critical to saving money on insurance, loans, and credit cards, but that’s not the only reason to repair your credit. Better credit opens up new employment opportunities, even promotions and raises with your current employer. If you dream of starting your own business or just want the security of knowing you can borrow money when you want to, you should repair your credit sooner rather than later.
Can You Repair Your Own Credit?
You’ve probably seen advertisements for credit repair on TV, radio, the internet, or even on the side of the road. The good news is that you don’t have to hire a professional to fix your credit. You can do all the same things a credit repair company can do, so save some money and the hassle of finding a reputable company and repair your credit yourself. But we are professionals regarding Credit repair so it is good to take professional advice.
Start With Your Credit Repair
Before you can get started, you have to know what you need to repair. Your credit report contains all the information that’s contributing to your bad credit. This could be past due accounts, debt collections, high credit card balances, or public records. Read through your credit report to identify the negative items affecting your credit score.
Review Your Credit Reports for Errors
Read your credit reports thoroughly, checking for things that may be inaccurate. It may be a lot to digest, especially if you’re checking your credit report for the first time. Take your time and review your credit report over several days if you need to.
Reading Your Credit Report
Become familiar with the information in each of your credit reports. Regardless of where you’ve ordered your credit reports, they’ll all contain:
- Your personal identifying information
- Detailed history for each of your accounts
- Public records like bankruptcy and tax liens
- Inquiries from companies who have pulled your credit report
Deciding What Needs Repair
Here are the types of information you’ll need to repair:
- Incorrect information, including accounts that aren’t yours, payments that have been incorrectly reported late, etc.
- Past due accounts that are late, charged off, or have been sent to collections.
- Maxed out accounts that are over the credit limit.
Highlight or underline each type of information in different colors to help you make a credit repair plan. You’ll take a different approach for each type of information. Highlighting in different colors save time re-reading your credit report each time you’re ready to make a payment, call a creditor, or send a letter.
Dispute Credit Report Errors
You have the right to an accurate credit report. You can dispute any information in your credit report that’s inaccurate, incomplete, or you believe can’t be verified. When you order your credit report, you’ll receive instructions on how to dispute credit report information. Credit reports ordered online typically come with instructions for making disputes online, but you can also make disputes over the phone and through the mail.