5 Steps You Need To Take To Repair Your Credit

Fast credit repair specialists are everywhere. You see them on TV, on the internet. Every time you check the mail, it’s full of fliers all claiming one thing-any credit card problem can be solved. Service providers in this field claim that they can make bankruptcies, judgments, liens and bad loans disappear from your credit file forever. They go as far as to claim they erase bad credit history from the lives of millions of Americans. Who wouldn’t want to procure their services after such claims? Recent economic times surely make such services indispensable to most of us. However, did you know that you can repair your credit history without much help from a third party? It is easier and cheaper to do by yourself.

The Trouble Of A Bad Credit History

Since the financial turmoil, in late 2007, bad credit has stood in the way of many plans. Banks and many financial institutions do not extend credits to a person whom they view as credit unworthy. Terms such as sub-prime borrowers are coined to refer to person’s whose credit card ratings are less than impressive. These borrowers will not be for loans. If you have skipped on some of your debt repayment plans, most likely your loan application form is placed under this folder.

There are a few options when it comes to getting loans with a poor credit card history. These alternatives however, have a catch. Your loan will be processed, but with this loan, you are bound to be subjected to interest levels well above the average rates on the market. Most lenders who are willing to deal with sub-prime borrowers have rates starting at 25%. The repayment period for these loans is even shorter. Such loans are never helpful. In fact, they leave you with more problems than you previously had to deal with before the loan. Horror stories abound all over the internet of people who took these loans and as a result, had more problems than they anticipated.

Therefore, it is crucial to have the perfect credit score, since anything less than perfect is considered as unacceptable. Nothing less than a perfect credit score will see to your success in achieving financial freedom. If you want to buy a house, you need a perfect credit score, if you need a loan to expand your business, then banks will only consider your application with a perfect credit card history to back it up.

How To Fix Your Credit History

Since having a bad credit score is not the wish of many, it is imperative to try and improve credit score. Certain events such as job cuts, family emergencies and even the death of the sole bread winner can lead to a bad credit score. In such eventualities, fast credit repair is the answer. Through this, you can get your credit card score back on track. Banks and other financial institutions will begin to approve your loan applications without subjecting you to torturous queries and procedures. There are five simple ways you can use to get your credit back on track, without involving a third party to help you out.

1. Inform Consumer Reporting Companies Of Inaccurate Information In Your Credit Rating

In writing, you can point out to consumer reporting companies of inaccurate information. In your letter, include copies that support your claims. Identify all items in your letter that you dispute and state all the facts and reasons why you dispute the information they hold. Politely ask them to remove all the inaccurate information from your file. Do not forget to include your complete names and address in the letter. The law requires the consumer reporting companies to investigate such claims within 30 days, unless they consider a dispute to be frolicsome. All the data you submit must be forwarded to the organization that provided the information, according to the law. The organization will then investigate the dispute. If the investigation reveals that the disputed organization is indeed inaccurate, then the information provider is required to notify all consumer reporting companies so that your file is updated and corrected.

2. Inform Creditors Of Inaccurate Items In Their Claim

Inform creditors of items that are inaccurate. Write to them, include copies of documents supporting your position. The law requires that items reported to a consumer reporting company to include all notices of dispute. If your dispute is correct and the items specified are found to be inaccurate, then the information provider has to withdraw that item.

3. Get A Permanent Source Of Income

Some credit facilities such as credit card retailers will not investigate into your credit history. They simply need to see your income status. If you have enough money for their liking, then they will give you a credit card. What you have to do next is to keep up with your credit card repayments. Doing this consistently makes you eligible for traditional credit cards. Even if you do not need these traditional credit cards, sign up for them and keep up with the repayments. This will go into your credit history, improving it and giving you just about the perfect credit rating.

4. Always Make Sure That You Owe Less Than The Credit Available

This is pretty much straight forward. A low balance with high credit on hand is healthy. A high balance with no credit on hand is not good for your credit ratings health. Never max out your credit card.

5. Build Your Credit History

Even after repairing your credit, there is one final thing that needs to be done. You need to build your credit history so as to improve your credit score even more. There are instances where credit card score is below average as a result of scarce credit history. Make sure that creditors report your credit history to consumer reporting companies and credit card bureaus. If you keep up with your debt repayment plan, then this will be reflected in your credit card history, effectively giving you a perfect credit card rating and score.

As a warning, fast credit repair scams are all over the internet. There is no way you are going to repair your credit overnight. You have to fight your way out. These simple steps are your best course of action to improve your credit history.

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