How To Repair Your Credit In Suboptimal Times

In today’s world, knowing how to repair your credit is important. Don’t get tricked in to thinking you need to hire. There are many steps you can take to start the process on your own. Here’s how you can start.

Obtain Your Credit Reports

The first step in repairing your credit is to obtain copies of your credit report from all three credit bureaus. Plan on sitting down with your credit reports for a while. You need to look through each item and scrutinize it. Highlight any accounts that aren’t yours, payments that are shown as late when they weren’t, credit cards that are maxed out, and all past due accounts including charge off’s and collections. Make a few copies of your reports. You will need to send the copies back to the bureaus for any items that you are disputing. This helps speed up the process.

Rope in Your Current Debts

Many people will choose to use a credit counseling repair service to do this, but in most cases you can get a handle on your open accounts without any professional help. Start by taking a quick assessment of what accounts you have open. Are they all current? If not, how many days behind are you? For accounts that are more than 30 days behind, you may want to consider closing or freezing the account. You can contact the creditor directly to see if you can get a reduction in the interest rate to help you pay it off. Many credit cards will offer to freeze the account for you. This will basically keep the account open while you are paying it off. You won’t be able to make further charges, but it looks a lot better than a closed account due to non payment.

You will also need to check your debt ratio. Any credit you have that you are utilizing more than 30% of the overall line will reflect poorly. Make these debts a priority and get them down to 30% of the line.

Pay Old Debts

Any charged off accounts need to get paid. If you have accounts that are reflecting as past due, do your best to get them caught up so they don’t end up being charged off too. Contact the collection agencies with recent collection accounts to work with them. As these are paid mark them off on the credit reports.

Disputing Incorrect Items

Draft letters to send to the bureaus regarding any incorrect information. The credit bureau repair process can take some time, but as long as you include all pertinent information with your letter it will speed up the process. Remember to include your name, address, social security number, account numbers in question, proof that it’s incorrect, and a copy of the report with the incorrect information. Your letter needs to be specific to the nature of the concern as well.

Credit Counseling

If this gets overwhelming a credit counseling service may be able to offer help. You will want to at least try this on your own at first to save some money.

Repairing your credit can be a time consuming process, but it’s an important process if you want to be able to enjoy credit down the road. Having good credit can open many doors for you. Start thinking about the future now by repairing what you can.