Most of America is suffering in today’s economy. Credit is either sparse or non-existent to the citizens that do not have a perfect credit score. If you are one of the millions of people suffering credit woes, then you have stumbled upon the right article. In this article we will provide you with tips on how to repair your credit. Before you know it, your credit score will be miles above what it is now!
Research the fine points of disputing items on your credit report. It can be done, but the process is not easy. Make sure to track and follow up regularly with all reported disputes. If you stop checking on them, they will stop working on them as well. It’s your credit, so make sure it’s correct!
When you inspect your credit report for errors, you will want to check for accounts that you have closed being listed as open, late payments that were actually on time, or any other myriad of things that can be wrong. If you find an error, write a letter to the credit bureau and include any proof that you have such as receipts or letters from the creditor.
If you are trying to improve your credit score, it may be helpful to set up a direct debit to pay your monthly bills. Direct debit will ensure that you never miss a payment due to being out of town or simple inattention. Also, if you use direct debit to make the minimum payment, you can add to that payment any time without feeling additional pressure.
An important tip to consider when working to repair your credit is that you may need to consider having someone co-sign a lease or loan with you. This is important to know because your credit may be poor enough as to where you cannot attain any form of credit on your own and may need to start considering who to ask.
If you have sent dispute letters to creditors that you find have inaccurate information on your credit report and they have not responded, try one more letter. If you still get no response you may have to turn to a lawyer to get the professional assistance that they can offer.
If you are trying to repair or improve your credit score, do not co-sign on a loan for another person unless you have the ability to pay off that loan. Statistics show that borrowers who require a co-signer default more often than they pay off their loan. If you co-sign and then can’t pay when the other signer defaults, it goes on your credit score as if you defaulted.
Another way to repair your credit is through the use of secured credit cards. These cards are available with many different rates, so be sure to shop around for one that can work for you. Just don’t apply to too many, because this can actually lower your credit score. This is due to the fact that it may appear to the credit bureaus that you are having money issues, and are trying to increase your credit lines.
You need to keep in mind that repairing your credit is a very long and tedious process, and it requires a lot of time and patience on your part. If any company contacts you and says they can solve all of your problems right away, they are being dishonest.
When you are in communication with a credit reporting agency it is extremely important that you be honest with the person that you are dealing with. There can be serious legal troubles if you do not. Dishonesty will also result in your credit report staying exactly as it is.
When trying to repair your credit, it is often important for you to look into companies that could make the stress a little easier on you. There are legitimate companies that can help you help yourself and consolidate all of your debt and often cut a lot of the debt off so you can have less stress.
When you need to repair your credit, make sure you keep using some credit. That is, don’t let your credit status go inactive because you aren’t making any payments on anything. To re-establish your credit you need to keep making payments on time, which will change your credit rating faster than not making payments at all.
Do not file for bankruptcy. This stays on your credit report for 10 years. It may sound like a good idea at the time, but avoid doing this at all costs. Even though you can clear out all of your debt at once, this will remain on your credit report for awhile.
Remain optimistic. It may seem like the entire process of repairing your credit is taking too long, but stick with it. Keep doing what you need to do. Eventually you will start seeing the results of your hard work. Just keep your end goal in sight and you will get there sooner than you thought.
Rather than avoiding a major debt you cannot pay, negotiate with your creditors and offer a partial payment. You should never ignore a debt that you do not have the funds to cover. You will find your creditors surprisingly sympathetic if you contact them, explain the situation and offer to put at least a little money towards repaying your debt.
When you are attempting to repair your credit, use registered mail for all of your correspondence with the credit bureaus and the collection agencies you deal with. Registered mail provides you with a documented paper trail that you can use to prove when you sent letters. This will make it harder for your creditors to ignore your correspondence.
All in all, credit is one of the most abused things in this economy. Most Americans do not have great credit, therefore resulting in declined bank applications, mortgages, store credit, etc. However, there are many ways to fix your credit. Just remember to refer back to the aforementioned tips in this article, apply them to your current bad credit situation, and you will be well on your way to credit recovery.