Are you concerned about your personal credit score? Would you like to boost your credit? If yes, consider the following credit repair tips:
Check your report. The first important step is to get a copy of your personal credit report from each of three major bureaus (Equifax, Experian, TransUnion). If you have not yet received your free report for this year, you can request for it by visiting www.annualcreditreport.com. All consumers are entitled to one free annual credit report so be sure to take advantage of this privilege.
Fix errors. There might be differences with each report so make sure that all your three reports contain accurate information. By fixing errors in your credit reports, you can make a significant improvement in your current rating. What kinds of errors can be fixed? Unauthorized charges, charges that have been paid, outdated information such as a record of bankruptcy or foreclosure older than seven years, and inaccuracies with your personal details (spelling of your name, a missing digit in your SSN, etc).
If you find any error in your report, you should immediately send a credit dispute letter to the bureau that issued your report. Upon receiving your letter, the bureau will conduct an investigation which can last up to 30 days. If your dispute is valid, the necessary corrections will be made on your credit file. The bureau will also notify the two other credit reporting agencies about the updates and send you an updated copy of your report for free.
Pay off your debts. If you have unpaid debts in your name, the only way you can repair bad credit is for you to pay your creditors. Remember that you are personally responsible for the repayment of your debts and no credit counselor or credit repair agency can magically erase the charges in your report.
Negotiate with your creditors. What if you can’t pay off all your debts at once? If this is not possible, you should speak with each creditor and try to work out a new repayment plan that is suited to your current financial situation. Don’t be afraid to admit that you are experiencing crisis. Trying to hide the truth will not be helpful. Instead, you need to be honest and request your creditor to make adjustments in your repayment terms.
Some people might be hesitant to try this step. But many creditors would gladly modify their terms to help a borrower who is experiencing financial problems rather than wait for them to file for bankruptcy. If you’re having second thoughts or if you’re not sure how to negotiate properly, you can ask advice from a trusted credit counseling agency.
Don’t be scammed. People who are in deep financial trouble can be an easy prey to scammers and fraudulent agencies that offer “instant debt relief”. If an agency promises to get you out of debt in an instant without any effort on your part, you are most likely dealing with a fraud. You can check out the NFCC or National Foundation for Credit Counseling’s website for a list of accredited agencies that offer low-cost or free counseling.
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
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- How and Where to Get Your Free Annual Credit Reports
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