Credit Repair: Do It Yourself In 4 Easy Steps
No one should fool you into thinking that you need the services of a credit repair company for credit repair. Do it yourself. Truth be told; everything a credit repair company promises to do for you, you can do even more yourself. The truth is that you are better off repairing your credit yourself because only then can you pay attention to minute details. Most credit repair companies have hundreds or even thousands of clients. So there is no way they can do it the way you would for the amount they charge. Roll up your sleeves and let me show you how to repair your credit yourself.
Order Your Credit Reports
Begin by ordering your credit report from the top three credit bureaus – Equifax, Experian and TransUnion. Do not expect the three reports to contain the same data. This is because creditors need not report to all three. You do not have to pay to get your credit report. Once a year, you can order your credit report free through annualcreditreport.com
Search for Errors
The credit reporting system is not perfect, so expect to find errors. If you find no errors, then you have not done an exhaustive study of your credit report.
Watch out for incomplete and outdated information, incorrect account histories, outstanding balances on loans that you have completed paying, and charge-offs and late payments that aren’t yours. When you spot such errors, make sure to contact the credit bureaus instantly and dispute the errors. This will significantly boost your credit score.
When disputing an item, do not forget to document everything. All forms and letters that you send to the credit reporting agencies should be recorded. Note the date you send out every document. The credit bureaus have the responsibility to investigate relevant disputes within a period of 30 days. If an item is not verified by the creditor, it is removed.
Prioritize Your Bills; Pay Them Off
When you are down financially, making the wise decision as to what bill to pay off first is very important. Otherwise, you would end up paying less important bills while necessities will suffer.
Make a list of preference. Food and medical expenses and other family necessities should come first. Following this closely is the paying off of secured debts like mortgage payment. Then pay off utility bills, car loan and child support. Credit card debts and other unsecured debts should carry a low priority. While unpaid unsecured debts could still hurt your credit score, you have not pledged any collateral for them. You not only prevent a loss of property when you pay off secured debts first, you also boost your credit score. This will put you in the right frame of mind to pay off unsecured debts later.
Rebuild Credit By Adding Positive Information
You want your on-time payment to reflect in your credit report. So when securing a loan, ask lenders if they report monthly payment history to a credit reporting agency. Not all lenders do this. Then ask them to report all your on-time payment as this will raise your credit score.
Make it a point to pay on time, every time. This way, you build your credit score faster.
Finally, don’t waste your time and money using the services of a credit repair company. If you are serious about credit repair, do it yourself.
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- Bad Credit Credit Report Repair – Why Do It Yourself?
- Some Basic Steps You Should Take to Fix Your Credit Report
- How To Raise Credit Score Fast In 5 Easy Steps
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