4 Steps To Repair Bad Credit Yourself

Written on:March 23, 2011
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If you are struggling under a lot of credit card debts, then you should consider solutions like credit card settlement or consolidation in order to get rid of your debts. However, it is also very important for you to keep track of your credit score if you do not want to fall into any difficulties.

It is essential that you maintain a good credit score as that determines whether you will get loans, employment, shelter, etc. Thus, if your credit sore is low due to rising debts, then you should take care to ensure that you do something about it. This means that you are to repair your credit score. It is important for you to know that you do not need to find a reputable company in order to repair your credit, you can do it yourself.

Some steps that you must follow in order to repair your credit yourself are as follows.

1. Getting your credit reports:

In order to repair your credit you must first be aware of what you are to repair. It is impossible to determine this until and unless you take a look at your credit report. Thus, the first thing that you must do in order to find out what is it that you have to repair, is to order your credit report. You must order your credit reports from all the three major credit bureaus. They are Equifax, Experion and Trans union.

It is important that you get reports from all the three bureaus because some of your creditors will only report to one credit bureau. None of the credit bureaus share any information. Thus, if you want to get a complete picture of your credit scenario, then you must get all the three reports. This will also ensure that you get to know how and where you are needed to repair your credit report.

2. Examining your credit report

After you get all your credit reports you are to go through them carefully in order to find out if there is any sort of problem. When you come across any information that you think is wrong, then you should mark it with highlighters.

You must look for any accounts that are not yours as well as payments that have been reported incorrectly. Look for any inaccuracies as tracing these will help you get your credit repaired.

3. Disputing what is not accurate

If you think that any particular information on your credit report is not accurate, then you have the full rights to dispute it. The instructions that you should be aware of when disputing information in your credit report is provided to you when you order for a credit report. In case you did not receive this, then you should send a letter to the credit bureau.

This letter should give a detailed description of the information that you think is inaccurate. Along with the letter you should also send a copy of your credit report with the inaccurate sections clearly highlighted.

4. Handling past due accounts

You should be aware that your payment history plays a very large part in making your credit score. Thus, if you have many past due accounts, then your credit will get affected very badly. If you want to take care of your credit score, then you should try and improve this.

What you should aim at is to get your past due accounts reported as paid or current. You should also try and work with your debt collectors and get your collection accounts taken care of. In order to improve your credit score you should also try and pay off all charge offs.

These are a few ways in which you can try to improve your credit score and lead a healthy financial life.

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