If your credit rating is poor, do not panic. There are a lot of things you can do to fix your credit. There are many companies that claim to “fix” your credit, but you can do the same thing for free. If you follow our tips you will be well on your way to repairing your credit.
Examine your credit report and make sure it is correct. Credit reporting agencies are notorious for their inaccurate data collection. There may be errors if there are a lot of legitimate derogatory marks on your credit. If you find errors, use the FCRA challenge process to get them removed from your report.
Your household bills are just as important to pay on time as any other credit source. When repairing your credit history be sure to maintain on time payments to utilities, mortgages or rent. If these are reported as late, it can have as much negative impact on your history as the positive things you are doing in your repairs.
Report older negative items even if you know they are correct. If you report an item, the agency will contact the owner of the debt to confirm that it is an accurate debt. Many agencies either do not have the time to respond or no longer have the records available. It’s worth the time to see if you can get these removed.
If you work every day but never seem to have any money, you should track how much you are spending and on what. By keeping a daily list of everything you spend your hard earned money on, you will be able to cut down or do away with those expenditures that are not required. You will be able to establish a realistic plan of how much money you need for a month, and you can use the rest to pay off other debts or just save the money, the choice is yours.
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.
Since passage of legislation known as the Credit Repair Organizations Act, companies must supply you with a required form known as the “Consumer Credit File Rights Under State and Federal Law,” before you are required to sign a contract to hire them to aid you in regards to repairing your credit. In addition, they must provide you with a written contract which specifies all of your obligations and rights. Make sure you read through all documents before signing a contract. A credit repair organization cannot charge you a fee until they have fulfilled all of their promised services. Also be aware that they must wait three days after you have signed a contract before they can perform any services. During this three-day waiting period, you may void the contract at any time, without payment of any fees.
As you can see, by following our helpful tips you will be able to do exactly what credit repair companies do. Your credit rating does not have to stay in the poor range forever; you now have the knowledge to drag yourself out of the poor credit world and into the good credit world.