Credit Repair: Do It Yourself In 4 Simple Steps
Posted at by ifydcat on category CreditNo one should fool you into thinking that you need the services of a credit repair company for credit repair. Do it yourself. The truth is that everything a credit repair company can do for you, you can do on your own. In fact, you are better off doing it yourself because only then can you pay attention to minute details. Most credit repair companies have hundreds or even thousands of clients. There is no way they can do as much as you can considering the amount they charge and the number of clients they have. Let me show you how to repair your credit yourself. So roll up your sleeves and let’s begin.
Order Your Credit Reports
Begin by ordering your credit report from the top three credit bureaus – Equifax, Experian and TransUnion. Since creditors do not need to report to all three, expect to find minor differences in the reports. You are not required to pay to get a copy of your credit report. You can order it for free once a year through annualcreditreport.com
Search for Errors
The credit reporting system is not perfect, so expect to find errors. In fact, if you find no errors, then you may not be looking properly.
Look out for outdated and incomplete information, inaccurate account histories, outstanding balances on loans you have completed paying, and late payments and charge-offs that are not yours. If any such errors are spotted, immediately contact the credit reporting agencies and dispute the errors. Doing this will significantly boost your credit score.
When disputing, don’t forget to document everything. Keep record of all forms and letters that you send to the credit bureaus. Take note of the dates you send out every document. The credit reporting agencies have the responsibility to investigate all relevant disputes in 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. If not, you would end up paying less important bills at the expense of necessities.
Make a list of preference. Food and medical expenses as well as other family necessities should top the list. This should be closely followed by paying off secured debts like mortgage payment. Next, pay utilities, car loan and child support. Credit card debts and other unsecured debts should carry a low priority. Although unpaid unsecured debts could still hurt your credit score, the good thing is that 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. It is not all lenders that do this. So ask them to report your on-time payment since this can boost your credit score.
Always make it a point to pay on time. This way, you build your credit score faster.
In all, don’t waste your hard-earned cash using the services of a credit repair company. Serious about credit repair? Do it yourself.
But what if I told you that you can fix your credit yourself in as little as 37 days? To learn how to do this, read my 37 Days To Clean Credit ebook review.