Published On: Tue, Oct 17th, 2017

5 Ways of How to Repair Your Bad Credit

 

By Contributing Author

Living with bad credit is highly problematic and not advisable. Having bad credit makes everything more expensive, reduces your saving and also makes it difficult for you to prove yourself as a credible customer for banks. They may also hamper with your employment opportunities as many companies usually end up doing a background check of your financial status.  Looking at the current trends, more and more companies in future will be interested in checking your credit status. In such a scenario it is necessary that you pursue credit repair to save money on your insurance, loans and credit cards along with building a better image for yourself in the market.

Five ways you can build your bad credit –

 

  1. Get the recent copies for your credit report

Before you take a step to repair your credit, have a clear idea of what needs to be repaired. Ask for your credit report which would have all the details of the mistakes you have made leading to bad credit.

 

  1. Review of your Credit Reports

Once you have obtained your credit reports, which would contain the history of your credits. It could be long and would take time, but try not to hurry and review the details of the report properly to avoid making any errors.

 

  1. Focusing on What Needs Repair

Once you have started reading your report you would see various types of information that needs to be repaired like-

  • Incorrect information, including accounts that aren’t yours, payments that have been incorrectly reported late, etc.
  • Past due accounts that are late, charged off, or have been sent to collections.
  • Maxed out accounts that are over the credit limit.

 

  1. Dispute Credit Report Errors

Once you have all the information on the credits errors, you have the right to dispute any information that you might think is inaccurate or not verified. Most of the credit reports have guidelines on how to dispute the given the credit report information.  You could send your disputes through the regular mail or online channels. If you are successful in making a case for your dispute, your credit report will be updated and the agencies notified. You will also receive an updated copy of your credit report.

 

    1. Manage your Past Due Accounts

Your credit card score is impacted by your payment history. In such a case having several past due accounts on your credit report can impact your score in a negative way. It is therefore crucial that you take this into account while reviewing your credit report. You should aim at having all your past accounts marked as ‘current’ or at least ‘paid’. You could contact your creditor to figure out a path for you to get back to ‘current’. They may be willing to waive some of the late penalties or spread the past due balance over few payments. Make it clear to them at the beginning that you want to avid charge –off and need help.

 

 

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