Credit repair is something many people try to do at one time or another. For some, it’s an annual event, while others attempt to clean up their credit on a continuous basis. What’s interesting about repairing your own credit is that it doesn’t take a huge investment of time, money, or energy. It is a process that, when done correctly, can yield impressive results in a relatively short period of time. By knowing a few things about how the credit repair industry works, it is possible for consumers to improve their credit as well as their financial lives.
When considering a credit repair service, it is important to ensure that they are a legitimate company. Consumers need to beware of any scams that claim to be able to fix your errors with little or no effort. There are some very clever scammers out there who will make big promises only to pull out the wool over your eyes and leave you high and dry. These kinds of companies know that consumers want to be helped, but don’t want to put in too much effort. The best thing for how to fix your credit anyone to do is to thoroughly research a company before committing to using them. Check out reviews and ask friends and family members for recommendations for reliable credit repair services.
Another feature to look for in a credit repair service is whether they have an option for you to dispute incorrect or negative information on your credit report. Many negative items can be removed through a process called “spot checking”. This involves contacting the reporting agency and writing letters to them letting them know the information needs to be amended. While many negative information listings can be removed, consumers should be aware that if a dispute is not raised within 30 days of the negative item appearing, it remains on the report.
Once the credit repair process begins, the goal is to keep it working for you. The biggest mistake that people make during the credit repair process is not making timely payments on their accounts. Most creditors expect you to make payments on time or before the due date. Therefore, if you miss a payment, this will negatively impact your score. Therefore, you need to be sure to keep your payments current on all accounts to avoid these types of issues.
If you find errors on your credit reports, the next step is to dispute these items with the reporting agencies. When doing so, be very specific about what the error is. For example, if you are not sure that the item is an error, just say so. Some consumers say something like “the information does not reflect my information”, which technically is valid. However, when presented with hundreds if not thousands of examples, the credit repair bureaus are forced to verify the item in question.
Finally, once you have disputed all of the negative items, the next step is to raise your credit score to the point where you can make future purchases on time. This can take several months, but it can be done. Credit repair can help you repair your credit score, but it is not the best way to repair your credit score for the long term. Using credit repair tools and beginning immediately to improve your score, however, can help you get back on track quickly and keep your score in the high 700s for the long term.