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"Five ways to improve your credit..."By Here are 5 steps to do-it-yourself credit repair. Remember, it won't happen overnight, but if you decide right now to improve your credit-worthiness, it WILL pay off!
The first step in repairing your credit is to know what is being reported about you on the three major credit bureaus. There's a very good chance at least part of the information is wrong or outdated. The three credit bureaus may very well have different information about your accounts. Time and money is wasted if you only look at one report from only one credit bureau. You should order a separate credit report from each bureau. The second step in the process of credit-repair is to examine each of your credit reports very, very carefully. Almost every consumer has at least one error on at least one credit report from the major credit bureaus. Credit bureaus compose your report from information provided by your creditors; they don't verify the information as it is given to them. Like it or not--the accuracy of your credit file is up to you. Get ready to clean and polish. Carefully check every detail from outdated or incomplete information to inaccurate account histories. Be meticulous and make a thorough list of items you need to dispute and why. Next, dispute and document anything you disagree with that appears on your credit report. You can either write a letter to the credit report or use the dispute form provided with your report. Clearly identify each mistake and say why it is wrong. Keep copies of every form, letter, and documentation sent to the credit bureaus along with the dates. Credit bureaus must investigate any relevant dispute within 30 days of receiving your request. Any tradeline that is not verified as accurate by the creditor who reported it is deleted. The fourth step in credit-repair is to solve and dissolve your debt burdens. Devise a spending plan that reduces your debt and sets you up to pay on time, every time a bill is due. Be proactive if you are having trouble making timely payments. Call creditors and try to negotiate to keep your accounts current and from being reported as delinquent or "bad debt." You can request reduced monthly payments or a change of the monthly due date to balance out your monthly bills. Also, deal with any collection accounts that appear on your credit report. Unpaid collections are worse than paid collections and severely hurt your credit score. Try to negotiate a pay-off settlement that reduced the balance and demand that all derogatory marks be removed from your credit report or at least reported as paid in full. Make sure you get any agreements in writing before sending a collection agency your payment. These people don't always play fair. The final step in credit-repair is to rebuild a solid credit file. Although your credit report looks back years, much greater emphasis is placed on more recent information. A year of improved credit activity can make a significant difference. Secured credit cards offer people with no credit and those repairing their credit this opportunity. Be careful not to accept secured or starter credit cards with exorbitant fees. Some credit card companies take advantage of your situation and you may find yourself with a credit card with a $300.00 credit limit and $250.00 in fees on the first bill. It happens, so be careful. There are several leading banks that offer secured credit cards designed to help you rebuild your good credit file. Be careful not to accept secured cards with exorbitant fees as if you shop around ,you'll find reasonably good terms for secured credit cards To return to the articles home page, click here
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