Credit repair is a great option to keep your financial life healthy. Did you know that a recent study indicated that approximately 79 percent of consumers have some kind of inaccuracy and error on their credit report?
Such inaccuracies can damage your credit score and lower your chances of qualifying for credit applications. And even when you do qualify for credit, you probably end up getting it on high interest because of your low credit score, which eventually burdens you with overwhelming debt over time as you are unable to make high interest rate monthly debt payments on time.
Credit repair is thus, basically the process of fixing credit reports with errors and mistakes, which will negatively impact your credit score. By identifying and eliminating errors on your credit reports, you can easily improve your credit score and take advantage of debt reduction strategies like balance transfer to pay off your debt. Wondering how to go about it? Well, to qualify for a zero interest rate balance transfer card, a good or excellent credit score is imperative. And if you are considering this option, than credit repair can truly help.
Steps to Repair Your Credit
To repair your credit, here’s what you need to do:
Request for a Free Credit Report from Each Credit Bureau
According to the FACTA (The Fair and Accurate Credit Transactions Act), you are entitled to one free credit report annually from all three credit bureaus – Experian, TransUnion and Equifax. Therefore, use your right and ask for a free credit report from each bureau.
Go Through Your Reports and Audit Each One Carefully
This may be time consuming but if you want to repair your credit, then you have to do it! Once you have all 3 reports, take time out to audit each report carefully. The goal of going through each report is to make sure that your information is accurate with the source so that it is reported correctly to everyone who checks your credit references.
Though the layout of each report will be different but here’s the information that every report will usually contain: personal identification, collections, public records, types of accounts, hard credit inquiries, soft inquires and consumer statement.
When you audit, pay close attention to missed payments as they make up the biggest part of your credit score. If you find any missed payments on your reports that are not correct, identify them and dispute the inaccuracy as it can make a huge impact on your score.
Another factor to pay attention to is the variety of credit accounts as it shows how well you’ve managed different types of credit together.
You must dispute if you find any incorrect information on your credit reports. Remember, there is no cost or fee charges on disputed items. And besides that, disputes from your end will not be reported or impact your report negatively.
Wait for 30 Days for Response from the Creditor or Removal
The credit bureau will get in touch with the creditor in case you dispute. If the credit bureau doesn’t get any response from the creditor in 30 to 45 days max, it will remove the error or correct the negative/ wrong information on your credit and notify you.
Once the items are corrected, make sure to request for a new report from each agency to view the changes and its impact on your score.
More Tips to Repair Your Credit
Other tips you can use to repair your credit are:
- Budget your monthly expenses to minimize your expenditures
- Consider debt reduction strategies like debt snowball or avalanche to pay off your debts
- Get professional help if your monthly payments are more than you can manage. A professional credit counselor can provide you with a solid financial management plan and help you pay of your dues timely. Your credit counselor will first assess and review your situation thoroughly to sort it out and provide you with an action plan accordingly, to help you make your monthly payments timely and become debt free easily.
For more information on credit repair, get in touch with us. Our friendly counselors can evaluate your financial situation and provide you with the best debt management solution accordingly. We work in your best interest and strive to help you take control of your financial situation and become debt free in the shortest amount of time.