Credit repair is crucial to saving money in loans, insurance, and credit cards, however, that is not the only important reason to repair your credit. A good credit score opens doors of opportunity, raises your interest rate with your new employer, and even provides new employment opportunities. If you just want the financial security of being able to borrow money when you need to or dream of starting a small business, then you must repair your credit early instead of later. With so many companies using credit scores to evaluate potential employees, there is an acute need for individuals with good but not perfect credit to get help now. Credit repair does not have to be expensive or take forever to fix, however the longer you leave your credit rating the worse it will become and the more it will be damaged.
Bad credit repair begins with obtaining your free credit reports from all three major agencies. This allows you to see where you stand financially and to discover any negative information that might be affecting your credit scores. You need to check all three reports closely because different agencies report credit histories differently. Some agencies are more strict than others when it comes to reporting late payments, collections, charge-offs, and other derogatory items. You must understand what these items are and learn how to effectively and quickly remove them from your credit reports.
After reviewing your credit reports, go over the questionable items with a fine-tooth comb. The removal process varies widely between the agencies, so it is important that you find the methods that work best for you. For example, some reporting bureaus will only remove certain types of negative items from your credit reports while other agencies will remove them all. If you have particularly questionable items such as collection accounts, then it is strongly recommended that you hire a credit repair specialist to assist you in removing them from your reports.
When you are working on removing negative items from your credit reports, it is also important to work on improving your credit scores. You can do this by paying down debt and other high-interest revolving balances. Remember that even one late or missed payment can negatively impact your credit scores. However, if you take on a lower balance to pay off your credit cards each month, you will be able to keep a higher credit score because you will be able to pay down debt and show creditors that you are making an effort to improve your financial situation. After you have taken steps to improve your scores with these debt and credit rewinds, it is time to work on increasing your credit scores through larger purchases. This includes home equity loans, car purchases, and the larger purchases that you make such as appliances and furniture.
By taking the time to improve your credit scores through larger credit card purchases you will help to create a better financial image for yourself. When you start to build a better credit score, you will find that you will qualify for more credit card offers. As you make more credit card offers, your credit scoring will gradually improve as well. After a few years of consistent credit card use, your credit scores will be high enough to qualify for the best possible credit card offers available.
Finally, remember to dispute all inaccurate items with the three major credit bureaus. When you know you have inaccurate items on your reports, begin immediately by sending a letter to the bureaus demanding that the items be removed. Then follow up with a phone call to the agency informing them that you have sent them the letters and call waiting to hear whether they will perform the disputing. If they are unable to do so within thirty days, contact a professional credit repair company for help. The credit reporting agencies are not required to remove inaccurate items from your credit reports; however, the more inaccurate items you have the greater the chance that they will remove them.
This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers credit repair services for those looking to improve their credit!