Get ready to use these free credit repair tips to rebuild your credit and get financing!
If you have used one of your available debt relief options, then credit repair is probably a priority. The first step to recovering from financial difficulties is to begin improving your credit report.
Delinquent payments, bad credit, and foreclosures usually mean high-interest rates and difficulty getting loans or mortgages. Lenders will consider you a high risk and will be hesitant to work with you. Changing your spending habits and cleaning up your credit report will help you get better loan rates and save you thousands of dollars in interest.
So, how do I fix my credit? Whether you have filed bankruptcy, used debt counseling, still learning about charge-offs, or credit inquiries, the journey to credit recovery will take time, but it is not as difficult as you may think.
Basically, you have two options: you can go the do-it-yourself route, or you can hire one of the reputable credit repair companies that we recommend. But, be careful! These services can be hit or miss and there are a lot of scams out there!
Perhaps you don’t want to tackle the problem alone, and you would rather call on the experience and expertise of those who understand credit laws. But, a little research is important before you throw away your hard-earned money on empty promises.
There is no company that can wipe your credit report clean and remove all negative marks, no matter how much money you pay them. The Federal Trade Commission warns consumers about falling prey to such promises saying that, “only time, a deliberate effort, and a plan to repay your bills will improve your credit as it’s detailed in your credit report.”
Debt Settlement and Debt Consolidation can help you get your finances under control so you can get onto repairing your credit faster.
You should avoid companies that:
- want money up front before they deliver services
- make questionable claims or promises
- don’t provide a clear, legal contract
- ask you to create a new credit report or identity
Credit Repair Tips:
If it sounds too good to be true, it probably is! There are some good credit repair services available, so do your homework and choose wisely.
Whether you hire help or do-it-yourself, there are a few credit repair tips and suggestions to keep in mind.
Get free credit counseling advice to help you overcome your debt. Know All Your Options.
- Get a copy of your credit report: Knowing what is on your credit report is important – you can’t fix it if you don’t know exactly what is wrong. According to a recent survey by Bankrate Inc., 31% of adults do not know their own credit score. Since this is one of the main factors in a bank’s decision to give you a loan or mortgage, it is a good idea to both know and understand this number. Trisha cleaned up her act and her credit report:
- You are entitled to one free copy of your credit report per year from each of the three major reporting bureaus. Get all of them, because sometimes they aren’t the same. By reviewing your credit report you will be able to identify and dispute any mistakes that may be hurting your score.
- Craig Watts, spokesperson for the Fair Isaac Corp, says that while half of all Americans have a FICO score above 720, just one reported delinquent payment of over 30 days can bring that score down by 50 points or more. Removing inaccurate or out of date information can improve your credit rating significantly.
- Knowing the specifics of your credit report will also be helpful when you are communicating with creditors.
- Beware of scams that tell you to create a new credit file. Some disreputable credit repair agencies will suggest inventing a new credit identity by using an Employer Identification Number rather than your Social Security Number. This is illegal! Besides the fact that it is considered to be credit fraud, this action does not mean that your “real” report no longer exists. Any lender who asks for your Social Security Number will still find this information.
- Get a copy of the Fair Credit Reporting Act and read it carefully. It is important that you know your rights and what laws debt collectors must follow when contacting you.
- Get Organized. Get to know your finances. Know what you make, what you owe, what you can afford to pay, and what you can cut. Make a budget and commit to it. Do you want to know how to rebuild credit fast? The answer is simple – devise a detailed plan and stick to it!
- Communicate with your creditors. If you are having trouble paying your bills or if you are really serious about cleaning up your credit report, then talk to your creditors. Be honest and upfront with them and try to make arrangements to reduce your balance or payments to something more manageable. You need to know your rights and options, but you also must remember to be cooperative and professional. State facts, but don’t make threats.
- Get current, and stay current. Begin the process of building a new credit history. It won’t happen overnight, but if you keep paying your bills on time, eventually your credit report will change and lenders will once again see you as reliable and dependable.
“You want to replace the most current information on the credit report with positive credit activity, signs that you’re paying your bills on time,” says Craig Watts. Even after a bankruptcy, you can take out a small loan or line of credit and begin rebuilding your credit by making regular payments.
I had a check book, and I wrote a lot of checks. Then I moved out of the state.
This was about ten years ago, and I figured out that this was a pretty good way of doing things, as each time I moved, it took a while for the banks and stores to find me.
After I’d lived in six different states though, it started to be hard to get accounts or live in any place that wasn’t a total dive. I wrote to a bank anonymously, and they told me I’d have to pay everything back, and they let me talk to this guy who arranged that I could pay a little bit every week.
It was hard, because it seemed like a lot to pay now for a little result in the future. But there were ants in the kitchen and termites in the walls, so I figured I was paying a little every week to get away from the vermin.
It worked, and a while ago I got a checking account, a real one, and my credit is good enough to get a credit card and make a deposit on an apartment, a real one with no rats!
Credit Repair Firm Or Do-It-Yourself?
Repairing your credit is certainly something that you can do yourself, but it requires a lot of time, work, and organization. Correcting just a single error on your credit report can take several hours when you consider obtaining copies of your report, writing a dispute letter, and communicating with creditors. There are advantages to hiring professionals who are familiar with the Fair Credit Reporting Act and understand credit law to do the legwork for you.
A reputable credit repair firm will:
- Obtain a copy of your credit report
- Review your report and identify errors
- Investigate or dispute mistakes
- Draft dispute letters and send them to credit bureaus and creditors
- Communicate with creditors
- Teach you how to obtain and maintain a good credit score
- Offer a free initial consultation to review your finances and discuss options
Keep in mind, though, even if you do choose to work with a good firm, the future of your credit score will still depend on you making smart choices and avoiding the pitfalls that got you into debt in the first place.
See what Tina did (please note, results will be different for each individual due to the actual companies on your credit report):
A year ago I started with Lexington Law to help remove past credit issues from my reports.
The sign up process was easy. I am completely satisfied … almost immediately things began to fall off my credit report.
Lexington law has given me very thorough details of every aspect of my case, and how they were improving my credit. I had constant reminders of all three reporting agencies.
Since March last year my score has boosted beyond 100 points and it is still improving!. They gave me excellent hope that my credit was on its way to cleaning up. To this day they still give me updates and continue to do an excellent job helping me maintain and clean up my credit.
Lexington Law Firm offers superb legal assistance in helping you repair your credit. Their services are affordable and reliable and they come with unlimited telephone and email support at no extra charge.
If You Prefer Do-It-Yourself Credit Repair
Then look at this written guide on how to repair your credit and follow the tips outlined. You need the one book that doesn’t fool around or put you on the edge of risk with your credit, Hidden Credit Repair Secrets: 3rd EditionHidden Credit Repair Secrets: That can fix your credit in 30 days (Volume 3) offers tips, and easy instructions you can follow to repair your credit yourself.
Also for DIY credit repair, you need updated copies of your current credit report. If you haven’t obtained your free annual credit report that covers all 3 major reporting bureaus yet, then get them here absolutely free: Access your free credit report from the big three major credit bureaus, TransUnion, Experian and Equifax, all on one easy to read report.