It is likely going to take you more time to repair your credit than it did to do the damage to it. The process of repairing bad credit can be much quicker than you think if you take the time to read through each of the following tips about credit repair.
Repairing your credit can take some time, but you can hasten the process by prioritizing your debts, particularly those that are in arrears. High interest rate accounts should be paid off as quickly as possible to avoid wasting money on interest payments rather than reducing the actual balance of your debt. If you have one or two accounts with a low balance, consider paying them off in a lump sum. Once that’s done, you can have them removed from your credit report.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. However, you have entered into a legal agreement that requires you to pay accrued interest. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
If a credit collection agency balks at removing incorrect items, consider taking them to small claims court. The law gives you the right to sue for damage to your report, the expense of removal, and the emotional stress involved in dealing with it. In many cases, you can win by default as they fail to show up.
If you are trying to repair extremely poor credit and you can’t get a credit card, consider a secured credit card. A secured credit card will give you a credit limit equal to the amount you deposit. It allows you to regain your credit score at minimal risk to the lender.
There are many books and websites about how to repair credit. Taking the time to learn how to go through this process will be quite beneficial to you. All of the information that you find will be quite valuable to you either now to repair your credit, or sometime in the future to avoid having to go through this again.
If you do not have the self-discipline to fix your credit by creating a set budget and following each step of that budget, or if you lack the ability to formulate a repayment plan with your creditors, it might be wise to enlist the services of a credit counseling organization. Do not let lack of extra cash keep you from obtaining this type of service since some are non-profit. Just as you would with any other credit repair organization, check the reputability of a credit counseling organization before signing a contract.
When trying to repair your credit by using a credit report as your guide, be aware that some of your negative habits will remain on your report for long periods of time; the only way you can correct those is by engaging in good habits. Late payments, such as those associated with credit cards last for about 10 years, while bankruptcies last for about 10 years.
Asking for help from a friend or a family member who consistantly proves to manage their money and credit in a responsible way, is a great way to learn how to repair your credit ratings. Be open to their advice and take what they say to heart.
The costs of bad credit are enormous, but even the worst credit record can be turned around with some time and a serious focus on good credit behavior. Bad credit makes it harder to qualify for home loans, credit cards and car loans. When you do qualify, then you pay substantially more in interest payments and premiums than someone with good credit. Sticking your head in the sand is not a solution. The only way back is to dig yourself out of your self-imposed hole with a strong commitment to change. Your first step is to get a copy of your credit report and understand the status of your accounts. If your accounts show inaccurate information then dispute it. If it is correct, then get to work on turning it around.
Now that you are equipped with helpful tips about credit repair, you are sure to be able to increase your credit score in much less time that it would have otherwise taken you. Take each tip and put it to work to help you restore your credit to a level that is acceptable.