Credit Repair Tips You Can Help Yourself

If you are presently struggling with bad credit history or overwhelming debt, do yourself a favour and save some money by helping yourself. Below are some practical credit repair tips for you:

Look into your credit report. When was the last time you looked at your credit file? If you haven’t done so within the past six months, then it’s about time that you order a copy from each of the three credit report agencies (Experian, Equifax and TransUnion).

Did you know that even the smallest error in your report can affect your rating? The good news is that you can undo those errors by sending a dispute letter to the three credit report agencies. After 30 days, you should be sent a reply to your dispute along with an updated copy of your report.

Pay off all debts you can. While it may not be possible for you to pay off all your debts at once, try to pay off as much as you can from your current charges. Pay special attention to your debts with the highest interest rates as these are the ones you want to get out of your way first. Keep up with your up-coming payments. Be sure that you will not again fall behind on your bills.

Do not be too quick in closing old accounts. Be careful about closing old credit card accounts as doing so could delete the oldest parts of your credit history as well. If you do, your credit score could drop even more since the length of your credit history comprises 10% of your final credit rating.

Request for new repayment terms. Ask your loan company or credit card issuer if your interest rate can be reduced or if certain fees can be waived so you can have a better chance of catching up. You may also negotiate for a modification of your contract.

Be honest and let your lender know about your current financial situation. You need to show that you are doing your best to avoid defaulting from your debts. You may be surprised to see that most of your creditors will consider your request rather than see you push through with the process of bankruptcy.

Acquiring professional help. If you already have been through a foreclosure or bankruptcy, it may be more difficult to negotiate a deal with your creditors. In this case, a credit counselling agency can negotiate in your behalf. Find a trusted and legitimate credit counselling service that can help you on this matter and guide you in managing your finances as well.

 

About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website EZCreditRepairSolutions.com. She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010
 

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