Posted Jul 26 2010 by Marc Chase
It’s a common question we get here: “Can I repair my own credit?” The short answer to the question is “yes.” If you need credit repair for your credit card debt problems, you’re going to need a bit of free time and a lot of patience.
Where Do I Start Repairing my Credit?
Your credit reports shape your credit scores. All three of the major credit reporting agencies – Equifax, TransUnion and Experian – allow consumers to pull their reports every 12 months. These reports are free, so there’s no excuse.
How Do I Read Credit Reports?
If you’re new to credit repair then the reports may be a little difficult to read. They’re full of numbers, codes and abbreviations to ensure that they’re both consistent and kept as short as possible. If necessary, find a credit repair services company that’ll give you a free consultation. Not only will they explain your specific problems, but they’ll also give you an idea of what your plan of attack should be.
I Found Some Mistakes on my credit report, Now What?
You need to challenge anything on your reports that’s not 100% accurate. Find a sample dispute letter, list exactly what’s being reported incorrectly and mail it to the credit bureaus. This is a fairly slow process as it’s still being done through the mail. Expect a turnaround of about 45 days and make sure that you’re keeping detailed notes of all correspondences.
Should I Pay My Outstanding Debts?
If you want lenders to see that you’ve paid off all of the money that you’ve borrowed, then yes, you need to figure out your debt relief situation. While it’ll still be listed on your credit reports, the fact that it’s showing as “paid” will certainly help.
Why Isn’t My credit Score going up?
It’s generally a misconception that once you remove some inaccurate or outdated items and pay off some debt that your score should shoot right up. Really what you’ve done is stopped your score from tanking. While removing negative information from your credit report does help, you need to establish new, positive lines of credit in order to maximize your credit score. If you have no cards at all your adding a new revolving credit line can add as much as 60 to 80 points to your credit score.
What If I Get Stuck?
It’s not uncommon to hit speed bumps on the road that is credit repair. There are plenty of people that have dealt with the same financial problems that you’re dealing with. Again, credit repair forums can be invaluable. Don’t be afraid to ask for help either. Just because you can repair your own credit doesn’t mean that everyone is up to the task. I’d like to build my own deck, but I know that my family’s safety says that I should get a contractor to do it right.
How Do I Know When I’m Done?
The truth is that you’re never really done with credit repair. Every month companies report to the credit bureaus regarding your finances. The obligation to make sure that they’re doing so correctly falls directly on you and no one else. The credit bureaus won’t verify to make sure everything’s being reported correctly.
What Am I Waiting For?
There’s not going to be an engraved invitation in your mailbox. You simply need to pull your credit reports and resolve to get all of your finances in order. It may seem like a daunting task, but once you’re getting the lowest interest rates possible you’ll be glad that you started.
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