Ideally, we would all be able to get a secure a loan to buy a house or car, be able to rent an apartment, or land the job of our choice without any difficulty or hassle. But in reality, those who would loan you money or advance you credit in most instances are going to want to make some kind of objective evaluation first. While there may be no obvious standards to determine just what exactly makes someone either a good or a bad credit risk, each potential creditor knows what they are looking for, and if they judge your creditworthiness to be unsuitable your application for a loan or for new credit will not be approved.
When your credit is bad, you are going to want to do something about this situation as quickly as possible. When you take steps to improve your credit rating in order to increase your chances of being able to acquire a home loan, or lease a car, or apply for a credit account with a retailer in the future, it is this process that we refer to as credit repair.
Finding Your Credit Rating
TransUnion, Equifax and Experian, the three credit reporting agencies, collect your information from past creditors, give you a credit score based on what they find, and share that score with any potential new creditor that contacts them. You are entitled to one free copy of your credit report from each of these services once a year – and this is the first step you should take once you become aware that there may be a problem with your credit rating.
If everything on a credit report is accurate, and the credit score is still a problem, then it will be necessary to undertake the process of credit repair by re-establishing proof of your ability and willingness to pay what you owe promptly and completely. Credit scores will change over time in response to your future activities, so if you pay off your past due bills, are sure to make future payments for financial obligations promptly, and just generally show yourself to be a reliable risk, it should be possible to repair credit so that it will be much easier to get loans, make purchases, and secure housing or employment in the future.
Necessity of Credit Repair
Your life options may be limited in important ways if your credit rating is bad. This is why taking action to repair your credit once you find out your score is in a relatively poor credit score range is more of a necessity than an option. Fortunately, credit repair is highly achievable it is mostly a matter of making absolutely sure the information in your credit report is accurate, and making absolutely sure that you don’t repeat the mistakes of the past if it is.
10 Signs You Need Credit Repair
1. You’ve been denied for a credit card.
2. Your electricity is in someone else’s name.
3. Debt collectors are calling you.
4. You can’t find anyone to co-sign your loans.
5. Your credit report is keeping you from getting a job.
6. Landlords won’t rent to you.
7. You’re afraid to check your own credit report.
8. Your credit score is low.
9. Your interest rates keep going up.
10. Card issuers are closing your credit cards.
How To Fix Our Credit
Unless you were born into an extremely wealthy family, it is unlikely that you will be able to get through life without having a few credit problems. It is just the nature of the current economy that credit problems happen. Establishing or repairing bad credit can take some time and you must be patient. It may take up to a year if not more to fix or repair credit from bad to good. It all depends on how bad your current credit situation is. On the upside, your credit score will improve monthly as you pay your monthly payments on time, removing past due amounts and collection accounts. There are companies willing to serve you repair your credit report.
You’re probably asking “how do I fix my credit”? We have broken it down in to six steps below.
- Order a report from each of the three main credit-reporting bureaus, Experian, Transunion and Equifax. You have the option to receive a free credit report from each one time per year, however, you may want to save time and get a tri-merged report that contains all three reports for a fee.
- Opt out. The credit bureaus can sell your information to creditors, insurance companies and more.
- Update all of your personal information with the credit bureaus.
- Read up on the laws and know your rights. There are the Federal laws: FCRA- the Fair Credit Reporting Act. FDCPA-the Fair Debt Collections Practices Act. FCBA-the Fair Credit Billing Act and others
- Compare your reports and determine the order or urgency.
- Hire A Credit Repair Company. It is important to realize that you can do all of the things to repair your credit on your own. However, there are reputable, successful companies with high expertise who can help you for a fee. It may be worth it to check out some of these companies as they specialize in credit repair and they have developed an expertise.