The Beginner’s Guide to Credit Repair

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Credit repair refers to the situation where a credit repair company tries to have credit information removed from someone’s credit reports. One has to pay to have their information removed. You can fix your credit scores. You need to know how to fix your credit records so that you can be in good books with the lenders. At this point, we may need to explain what credit scores are and how this influences your financial decisions.

What are good credit records?

When it comes to lending money, one must have a good credit record so that they can qualify for credit. Credit records have to do with one’s past borrowings and how they repaid the money. People who default in their repayment end up with a bad credit record. Our credit reports determine so many things about our financial lives. People who have good credit scores get better interest rates, competitive insurance premiums as well as getting good ratings when it comes to finding a job. As such, one should either attempt to repair their credit records on their own or have a credit repair company do it for them.

How is credit repair done?

This is something you may want to know before you embark on repairing your credit scores. Some companies are engaged in the exercise of credit repair. What they do is communicate with the companies that reported you such as insurance companies, banks, and credit card issuers. The companies will persuade these companies that reported you to either delete the information or modify such information to favor your credit ratings.

The credit repair companies can send mail, internet communications, or even make phone calls to the companies that reported you or the credit reference bureaus to have them repair your credit ratings. If the many letters sent are not acted upon in 30 days, such accounts can then be deleted, helping improve one’s credit rating.

Tips to repair your credit

If you have a bad credit record, you can repair it on your own. You can as well have a credit repair company do it for you. Here are tips to help you do your credit repair:

1. Check your credit report and score

To understand your credit status, you need to contact a credit score bureau to learn about your score and status. The credit report you will get has information about your credit status for the last 10 years. Check your credit score every month to help you to be in good standing or make it easy for you to start repairing your score if needed.

2. Dispute or fix any errors

Many credit bureaus make errors on your credit score. These errors can affect your ability to get better loans and interests. As such, for you to have a better credit score, check any errors on your credit reports and have such errors corrected for you to repair your credit scores.

3. Pay bills on time

This is another important manner you can repair your credit scores.It may not be an instant way of repairing your credit but it helps improve your credit records. If your monthly payments have not been regular, you should strive to regularize them. Remember that up to 35% of your credit scores and based on your payments. The easiest way to ensure your timely payments of bills is through auto payments. Set up an auto payment for bills that can be paid in this manner. For those bills that cannot be auto-paid, you should make payments as soon as you receive the bills.

4. Pay off other debts

Any other types of debts outstanding will also affect your credit score. If you want to increase your credit utilization ratio, paying all debts is something that should be on your priority list. For credit card debts, you can consider the snowball or the avalanche method. The debt avalanche method is the payment of high-interest cards first before those that have low interests. Paying your small balances first is what is known as the snowball method. Well, evaluate these two methods and determine which improves your credit score faster.

5. Do not close old credit cards

By keeping old credit cards open, you will keep your long credit history and this is a good way to improve your credit scores. This long credit history can contribute up to 15% of your scores. Many people are tempted to close credit cards once they have paid these off. However, be sure your cards do not charge annual fees as the issuers can close them if you do not make these annual payments.


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