When You Want to Repair Bad Credit on Your Own

Credit report glitches should never be neglected and if you have bad credit, it’s important to take positive action right away to keep the damage from worsening. On this post, we present do it yourself credit repair tips for people with imperfect credit:

1. Regularly check your credit reports. How often do your check your reports? Financial advisors recommend checking your report at least twice a year to make sure that it is free from errors. Consumers are entitled to receive three copies for free (one from each bureau- Equifax, TransUnion and Experian) annually. If you have not yet received your free report for this year, you can request at www.annualcreditreport.com.

If your credit application has been recently rejected because of your credit history, you are also entitled to get a free copy of your report. If you are unemployed and plan to look for a job in the next 60 days, you should take advantage of your right to a free annual credit report. You can request at www.annualcreditreport.com – the only online resource authorized by the government to distribute free consumer credit reports.

2. Exercise your right to dispute. According to the Fair Credit Reporting Act (FCRA), consumers have the right to dispute unauthorized charges and incorrect information in their reports. Upon receiving a copy of your report, carefully examine it for errors. If you discover any false detail, you must immediately notify the credit bureau.

Disputing credit report errors can be made by sending a credit dispute letter to the bureau that issued your report. The bureau will conduct a 30 day investigation on the matter and if your dispute is found valid, the incorrect items will be deleted from your report. The bureau will also notify the other two credit reporting agencies and send the consumer an updated copy of the report for free.

3. Evaluate the situation. What if you did not find any errors in your credit report? If you have bad credit because of unpaid debts, the only way you can improve your credit score is to resolve your debt problem. Yet, what if you can’t pay all your debts at once?

If paying all your creditors at once is not possible, do not dismay. You must create a proper plan so you can take control over the situation effectively. How? Use your credit report to evaluate your financial standing. Which of your debts have the highest interest rates? Which of your accounts are putting you in great danger?

For instance, if you are in the middle of a housing loan repayment, then it should be on top of your priority. Keep in mind that if you fail to take action, your mortgage lender can foreclose your home and you could lose your most valuable property.

4. Seek help if needed. Sometimes, resolving bad credit on your own can be difficult. In this case, you should not hesitate to seek help or counselling from a credit counselling organization. A credit counsellor can help you come up with a debt repayment strategy that is applicable to your situation. You can also get correct advice on how you can better negotiate with your creditors to get a positive response. Just make sure that the agency is legitimate, reputable and has a clean record of service before you sign up for a credit counselling program.

 

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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