Repair Your Credit. 5 Steps to Repair Your Credit by Yourself. If you want to repair your credit you can do it yourself and receive a new Score. You do not need a credit repair company. Although there are some of these services that are legitimate, there are also scams and scams in this market space.
With a little time it can give you the opportunity to repair or improve your score for yourself.
If you have bad credit, problems with past due debts or perhaps personal bankruptcies, it is easy to believe in promises to fix your history by magic.
It is important for you to know that no credit repair can be done instantly or briefly. Even using the repair services this will take time.
Perhaps you have heard the commercials that promise a new credit identity or a good rating quickly, the Federal Trade Commission recommends caution with these services.
Credit repair companies, debt management companies and debt settlement companies.What services do you offer?
Companies reparative credit going to get your credit report to review and perhaps discover entries made by error. The report will be obtained from each of the credit bureaus and they will help you clarify the negative activities they find. Generally, these companies are not going to reduce your debts, nor negotiate them, this is done by companies that consolidate debts.
If you have many debts and cannot pay them on time, you can consider the services of a debt consolidation company. This will help you negotiate with creditors and credit cards. They can help you lower the interest rate, the amount to be paid per month or both.
Although they can negotiate monthly payments, they will not reduce the total balance of your debts. For this purpose there are debt settlement companies.
It is important to be clear about the services you need and what is the best type of company that can offer them. There are legitimate companies to help you repair your credit or manage your debts, but you must be careful and use one that will not deceive you.How to evaluate a credit repair company
If you decide to use the services of one of these companies you must make an evaluation to not be fooled. These are some of the things you should take into account so as not to fall into fraud.
The company promises to erase the negative marks on your credit report. This is something that can only be erased from time to time and positive activities or with brands in your history. Only if there is an error, can it be deleted through a negotiation.
- They ask you for money in advance to erase negative marks. It is required by federal laws that the company must first render the credit repair service before charging for it.
- They tell you that you cannot clean your history yourself. This is not true, since with a little time you can check your credit report, make a dispute if something is not right and you can negotiate payments with your creditors.
- They do not inform you about your rights as a consumer.
- They do not give you a copy of the contract.
- They do not allow you to cancel the contract within 3 days.
- They promise you a new credit identity.
How to repair your credit for yourself
The good news is that you can also repair your credit history by yourself. Of course, this will take a little more time and you will have to do research and educate yourself how to do it. But, this is an education that will give you a long time.
Get your credit report
Before attempting to repair your credit you must understand that it contains your report or report. You can obtain this report every year for free, from each of the three credit bureaus. These are Equifax, Transunion and Experian. The website to request the report is AnnualCreditReport.com. This report does NOT contain an element of credit score, it only contains activities and personal information. To obtain the score (Score) you must obtain it from the bureaus, this is a paid service. Generally, the FICO Score costs $20 to get a score per bureau.
There are other commercial websites that offer a free credit report. Most will give you the report without the score or FICO Score. Two of these are Credit Sesame and Credit Karma. Although these pages do not give you the Free Score, you can use the free report to review your history and educate yourself on the subject.
Check the entries in your credit report
The credit report contains this information: Personal data, negative activities, entries in good condition (eg payments), public information (eg court order) and the name of the businesses that have obtained your report (e.g. banks).
Personal data – it is very important to review this data, such as name, social security number, address, etc. If you see that there is an error in this information, then it might be a simple mistake or a signal of fraud. You should contact the bureaus if these data contain errors.
Negative activities – This part contains entries such as collection accounts, overdue payments, unpaid accounts, medical bills, but it can also include small things like electricity bills or unpaid phones. Even if you have paid these bills, they may still appear in your history.
Public information – this part contains the activities related to the courts, such as bankruptcies, order by civil trial etc. You will find names of the plaintiffs, dates of trials, balance to be paid etc.
The information in your credit report is updated as soon as the bureaus receive the new information.Generally, public data sources are slower than commercial data sources, such as banks or credit cards.
The information to contact the credit bureaus is this:
Equifax Credit Information Services, Inc
Address: PO Box 740241, Atlanta, GA 30374
TransUnion LLC Consumer Disclosure Center
Address: PO Box 1000, Chester, PA 19022
Experian National Consumer Assistance Center
Address: PO Box 2002, Allen, TX 75013
Dispute the wrong or unverifiable information
The other good news is that if you have wrong or unverified information in your report you can dispute it with the credit bureaus or with your creditors. To make a dispute use this form of the Federal Trade Commission and this form to dispute directly with the creditors.
Make copies of all documents and letters that you send to the bureaus and to the banks and other creditors. Provide copies of documents with relevance when making your claim.
Wait for the answers
The wait usually takes 30 days, after the dispute is made. The bureaucrats respond in writing with the decision of whether or not there were changes in your history after your claim. If they made the changes you requested, you will receive a new report that reflects these changes. If they didn’t make the changes you claimed you can ask them to write a note referring to the dispute in your report.
You can also pay the bureau and send a new copy of your report to creditors who have used your history.Improve your credit using your skills
You have already reviewed and analyzed your credit report, now it is time to use what you learned to improve and maintain good credit. If your credit history still has negative entries, they will still be between 7 and 10 years before being deleted or expired. Even so you can start rebuilding your good credit. While waiting for negative activities to expire you can use these recommendations and improve your credit.
Stay on top of your credit and FICO Score. You can monitor your report through a service to observe and analyze credit history. You can also get your report 2 or 3 times a year and verify it yourself. This way you can notice the activities that enter and leave your history.
Pay your debts on time. Paying your debts late is one of the reasons why your rating goes down fast. Paying on time is an easy way to keep a good score.
Do not close old accounts that contribute to your score. Sometimes it is recommended to close card accounts to people with bad credit. This is done because many of these have problems handling their accounts responsibly. However, accounts that have been paid and that contain good activities should be left open. Good activities, such as timely payments, improve your score.
Do not use all approved credit. The use of credit, or how much you use of your approved credit is very important in the calculation of your qualification. It is advisable to use 30% or less of your total credit.
Consider a guaranteed card. If you are in the process of repairing your credit, you can also use a guaranteed card to push your score. With this card you can make payments on time and show that you can handle your accounts responsibly.
As you can see, you can take control of your credit history with a little patience and in a few steps. If you cannot repair your history on your own, consider the services of a repair company or a credit settlement company. But, it is very important not to ignore your credit problems since good credit contributes to your prosperity and that of your family.