Steps To Repairing Your Own Credit

Ordering your credit score and discovering a low number can delay any plans to purchase a house or finance an automobile. Credit scores range from 300 to 850. A good credit score is 680 or higher according to some lenders. Having a score less than this number is problematic, but fortunately, there are several ways to repair your bad credit. Before you can fix your credit, it’s important that you recognize actions that can lower your score.

Check Your Credit Report

Not knowing whats on your credit report can play a big role in having bad credit.  Repairing your credit involves checking your report and ensuring that all information listed on your report is accurate. You have three credit reports—one from each of the reporting bureaus. Go to Annual Credit Report online and order your free copies at least once a year. This gives you the opportunity to examine your personal credit report and determine areas that need improving.

Your credit report may include wrong information that might stop a loan approval, or force you to apply for bad credit loans, which usually feature high interest rates.

Related Post: How to Check Your Credit Report

Dispute Credit Report Errors

Discovering credit report mistakes is only the first step in credit repair. Removing these errors is key to improving your bad credit score. Make a note of each wrong entry on your report and then draft a dispute letter to your creditors. Be specific and explain why you’re disputing an entry. Did you pay off the account? Was the account reported in error? Have you been a victim of identity theft? Mail your credit dispute letter to the credit bureaus via certified mail. The credit bureaus will investigate your complaint upon receiving the letter.

Related Post: How to Dispute the Errors in Your Credit Report

Paying Off Debts

Bad credit loans allow people with less than stellar credit to get financing, but the terms and conditions are less than desirable. By paying down your existing debts, as well as paying off charge-offs and any old judgments, you can possibly negotiate a loan approval and acquire a better rate. Understand, however, paying off a delinquent account won’t necessarily remove the entry from your credit report. In this case, lenders and creditors typically update credit reports and include the words “paid or “satisfied” next to a charge-off or judgment—which works to your advantage when applying for loans.

Credit Repair Services

Some people contact credit repair services for help. Many of these companies are reputable and provide a useful service. However, credit repair these services charge a monthly fee. Rather than work with a credit repair agency, you can save your money and improve your score on your own. There’s no easy fix for bad credit, and using a company will not necessarily speed up the process.

 

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 © 2012
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