If you have a problem with your personal credit, you’ll be glad to know that you can repair it and you can do it on your own. In this article, we present all the steps that you can do by yourself to improve a low credit score or repair a bad credit history.
Check your credit report. The first step in rebuilding bad credit is credit report check. Order a copy of your report from the three major credit bureaus (Experian, Equifax, TransUnion). Have you received your free report for this year? If you haven’t yet, you can order your annual free report from www.annualcreditreport.com. On the other hand, you can also order straight from each of the three bureaus for a fee of $9 to $12 per report.
Dispute errors. Examine your report to see if it contains any error. Remember that errors can be corrected by sending a credit dispute letter to the bureau that issued your report. Your letter should clearly point out the items in your report that needs to be corrected. Send your letter via registered post mail with photocopies of supporting documents if applicable. Upon receiving your letter, the bureau will conduct an investigation regarding your dispute which can go up to 30 days. If your complaint is valid, the bureau will send you an updated copy of your credit report for free. It will also contact the two other bureaus about the updates made in your file.
Evaluate your debt. If you did not find any error, use your credit reports to assess your situation. Some people are not truly aware of how bad the problem is until they check their report. Sometimes, the problem may not be as bad as you think. Regardless of how serious the debt problem is, keep in mind that if you take action now, you can get yourself out of bad credit one step at a time.
Prioritize your debts. You may not have sufficient cash to pay all your creditors at once but this should not prevent you from taking charge of the situation. Check which of your accounts have high interest rates. High rate debts should be paid off as soon as possible to prevent your debts from building up quickly. If you see accounts with only a small amount of debt, you may consider paying it in full so you can eliminate some accounts from your obligations.
Create a debt repayment strategy. An effective debt repayment strategy should be realistic. You may need to make adjustments in your monthly spending in order to make more room for the payment of your debts. Don’t try to solve the problem in a hurry. Rather, you should focus on eliminating your debts one sure step at a time.
Avoid new debts. You need to focus on debt repayment and it can take a while before you can be free from debts completely. Thus, it’s only wise to avoid incurring new debts which can make repayment more difficult. If you own credit cards, use them only for minimal purchases that you can pay in full to prevent your account from automatically closing.
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 © 2011
- Do It Yourself Credit Repair
- Rebuilding Bad Credit through These Tips
- DIY Credit Repair Tips for People with Bad Credit
- When You Want to Repair Bad Credit on Your Own