Credit Repair Guide – How to Erase Bad Credit And Repair Your Credit

How would you like to clean up your bad credit and rebuild your record? Yes, that’s right. You can fix your credit report and repair your credit. You can learn how to repair bad credit yourself. Good credit is a necessity in our society. It is important that you have a good credit record.

Many people mistakenly believe that once you have bad credit that there is nothing you can do about it. But that is not true. You don’t have to live with a bad record. You can get rid of negative items on your report if you have the right information at your disposal.

Whenever you apply for credit, your credit report will be reviewed. Lenders check your report to determine whether you are a good credit risk. They rely on the information contained in your report to determine your reputation for creditworthiness.

If you have bad credit record it is often difficult to get an apartment, a loan for a car or any form of credit loans at all. Therefore, it is important that your credit rating is secure.

The first step to fixing your record is getting a copy of your credit report. You need to see what’s in your report.

By law, you are allowed to receive a free copy of your credit report once a year from each of the major credit bureaus. Also, if you are denied credit, you have the right to get a free copy of your report if you request it within 60 days of receiving a denial notice. If not, the bureau may charge you a small fee.

Once you have your report, you can now find out if it contains any mistakes. Examine your report for inaccurate dates, amounts, or any other incorrect details. If you find any errors in your credit report, you need to get in touch with the credit agency immediately and dispute the items.

When the credit repair agency receives your dispute letter, they will contact the creditors behind the mistakes and resolve them for you.

In viewing your report, if you find that most of the damaging information in your report is your own fault, you’ll need to take steps to resolve them. For instance, if you have late payments appearing on your record, sign up for an automatic payment plan to avoid the problem.

If you have debt that needs to be paid, you can try to negotiate debt and interest rates with your creditors.

After you’ve finished getting rid of negative information, it’s time to add positive accounts to your record. There are several ways to establish a good credit history.

This can be accomplished by taking out a small loan backed by funds in your savings account. When you pay back the loan, your security deposit will be released to you.

Another effective way to build good credit is to apply for a secured credit card. This requires you to open and maintain a savings account as security against default. Department store and gas station charge cards can also help you rebuild your credit.

With the right information you can fix credit report. By eliminating the source of negative credit reports and adding positive credit accounts, you will be well on your way to establish a good credit record.

Rebuild Bad Credit – A How To Guide

In order to rebuild bad credit, you need to take a two-pronged approach. You need to make sure every item on your credit report is accurate and then start building sound financial habits.

Clean Up Your Credit Report

First step to rebuild bad credit is to get a copy of your credit report and go over it with a fine tooth comb looking for any inaccuracies you can dispute with the credit reporting agencies.

The Fair Credit Reporting Act allows you to dispute items on your report that you deem inaccurate, so make the most of your rights and dispute those you feel are incorrect.

There is a sample dispute letter you can find on the website that’s highlighted below that you can copy and send to the credit agencies.

Develop Sound Financial Habits

Once you’ve dealt with your credit report, the next step to rebuild bad credit is to develop sound financial habits in your day to day life that will add points to your credit score.

Paying your bills on time is obvious, but it’s an important habit to develop as your payment history accounts for 35% of your credit score. That’s huge and just by being diligent and doing whatever you can to make sure payments are paid on time and not one day late, you can start turning your credit situation around.

Your recent bill paying activities add a lot of weight to having a good credit report so you really want to develop this sound financial habit if you are serious about improving your credit.

If you want to rebuild bad credit and you have credit cards, try to only use up to 50% of their credit limit. The amount of credit you have available also has an effect on your credit report, so do what you can to get these paid down to 50% of their limit as quickly as possible.

Rebuild Bad Credit – Get Yourself a Credit Counsellor

If you have a poor credit rating and want to improve your credit score then there are two options which you can try to get help. You can employ the services of a credit repair company or you can get yourself a credit counsellor. Credit counselling, as opposed to credit repair companies has a lot of advantages when you want to rebuild bad credit.

Credit counselling is also known as debt counselling and is usually provided by a non-profit organisation. It will therefore not cost you anything, unlike employing the services of a company where you will be charged a fee. Because debt counsellors are not offering you advice in return for a fee you are able to feel more confident and trusting towards them. They will guide you through the process of obtaining your credit report from the bureaus and getting any inaccuracies in your report fixed. But in truth, removing any errors from your report is only a small part of rebuilding bad credit.

A debt counsellor will offer you advice about budgeting, paying your bills regularly, and learning how to manage your money more effectively over the long term. You will more than likely have to have a meeting with your counsellor where you will be asked to write down every expense that you have each month. This can really help you to get an overall picture of your current financial situation. Your credit counsellor will then be able to advise you on the steps to take to rebuild bad credit.

Credit counselling is not just concerned with helping you to rebuild bad credit, it is about educating you to spend and borrow responsibly and to make good credit habits a way of life. Living within your means is a skill which comes easily to some people, but others amongst us need guidance to learn the skills effectively. Credit counselling services often provide credit workshops and leaflets which you can take away and study. They may even provide one-on-one counselling services or have meetings which you can attend on a regular basis.

In conclusion, if you try to rebuild bad credit by getting yourself a credit counsellor you really have nothing to lose and a lot to gain. With a credit counsellor you have all of the advantages that you will get if you employ a credit repair company. Plus you will learn how to budget and maintain a good credit score once you have improved your current credit rating. Credit counselling will teach you good financial habits for life. This means that once you have managed to rebuild your credit you will find it much easier to maintain your credit score at a good level.