If your credit report is filled with errors, your credit score will suffer, and it will be difficult to get credit in the future. You can actually fix your credit yourself and finally have a healthy credit report. Read the rest of this article to discover the steps to fixing your credit.
Good credit scores mean you can easily qualify for a home or car loan. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. Home ownership also means you have assets that you can rely on to increase your credit score. Having a good credit score is important if you need to take out a loan.
One of the first steps of improving your credit score is ensuring that your bills are always paid. Not only must bills be paid, but they must also be paid in full and in a timely manner. Once you have started to pay towards your past-due accounts, you credit score will gradually improve.
Before you choose a credit counseling agency, find out more about them. Some counselors truly want to help you, while others are untrustworthy and have other motives. Some are not legitimate. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Make sure you review all of the negative marks against you on your credit report. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
If you find inaccuracies on your credit report, make sure to dispute them. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Use a return receipt when you mail your package so that you can prove that the agency received it.
Get a written copy of any payment plan you negotiate with a creditor. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
If at all possible, avoid filing bankruptcy. It is noted on someone’s credit report for 10 years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
It is important to read all credit card statements you receive. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. If an error occurs, you should immediately notify your creditor.
Reducing the outstanding balances on some of your credit cards can improve your credit rating. Paying off your balances will have a perceptible positive impact on your credit score. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
Credit Score Repair
Make sure a credit score repair agency is legitimate before choosing to work with them. There are plenty of credit score repair agencies that don’t follow through with their promises. Indeed, some people have fallen prey to credit score repair scams. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
Although they mean a lot to you, these statements are often set aside when lenders go over your credit history. It can even draw more attention to the bad spots, so don’t do it.
Work out a plan of attack where you can pay off collectors and any other accounts that are past due. While this will not remove the debts from your credit report completely, they will be showing as paid and no longer negatively affect your rating.
So, by now it is clear that if you want to raise your credit score, there are a multitude of ways of going about it. By following the advice given in this article, your credit score should improve. With a little time and know-how, great improvements can be made to your credit reports and boost your overall credit standing.