Many of you may have to go through a credit repair process at some point of time. The reason may be you are facing debt problems or there are inaccurate negative items in your credit report. Whatever be the situation, you need to work towards rebuilding your credit record and improving your score.
How you can repair credit all by yourself
If you want, you can repair your credit all by yourself without taking help from any professional agency. By doing so, you can save the dollars which otherwise you would have to pay as fees for the professional help. There are certain steps you need to follow if you want to repair your credit on your own.
- Assess your financial condition – At first, assess where you stand financially. Then, plan a budget and try to save as much as you can.
- Check your credit reports – You should also pull out your credit reports from the three major bureaus, namely, Experian, Equifax and TransUnion and check for any inaccurate information.
- Dispute inaccurate information – If you find any inaccurate negative information or mistake in your personal information, dispute it immediately by sending a copy of your credit report with necessary documents, as a proof, to the bureau.
- Do not incur more debt – It is very important to not incur further debt till you repay your previous debts successfully. However, while paying back your debts, do not close your credit cards abruptly, as it may reduce your credit history and lower your score further.
- Reduce the usage of credit cards – For the time being, do not use your credit cards to make purchase. Also, make your bill payments on time.
- Check with your creditors – After you pay back your debts, check with your creditors and credit bureaus to make sure the account statuses are correct.
- Try to obtain new credit – After you have paid back your debts, you should try to obtain new credit in order to improve your situation and rebuild your credit history. However, it might be difficult for you to take out a credit card with your current record. In such a situation, you can obtain a secured credit card. You can also ask a family member to become a co-signer for a credit card or take out a small amount of loan, and make the monthly payments on time.
How a credit repair agency can help you
You can get help from a credit repair agency if you think that you can rebuild your credit record better with professional help. A credit repair agency can guide you to rebuild your credit score. Here are some ways how they can help you.
- Offer financial advice – A professional agency can offer simple budgeting tips, which you can follow in order to save more every month. It can also advice you on how to avoid debt problems in the future.
- Make a debt payment plan – The agency can also help you make a personalized debt repayment plan following which you can pay back your bills fast.
- Negotiate with your creditors – Such an organization can also negotiate with your creditors to remove certain negative items from your credit report, which can help in increasing your score to some extent. However, in this regard, you should know that certain negative items (such as, a Chapter 7 or a Chapter 13 Bankruptcy) cannot be removed from your report before a certain time period.
Whatever option you choose - whether you get professional help or decide to repair your credit on your own, you should have patience and stay motivated throughout the process. This is because it will take some time to increase your score. So, you continue adding positive items to your credit report and manage your finances efficiently, and you will be able to rebuild a good credit record and have a good score, which will help you enjoy a better lifestyle.