How to Repair Your Credit

How to Repair Your Bad Credit Č It may seem like the world keptsifting away from you and your efforts to maintain your credit standing. Late-payments, bankruptcies, tax liens, overdue-payments. It's overwhelming to say the least, and you can only blame yourself for falling into thisMainpertyLand of Bad Credit. It's time to take proactive steps to repair your credit. But where do you start and how should you go about paying off your debts and rebuilding your credit? Start by cleaning up your credit report as soon as possible. You don't want to spend years trying to rebuild your credit only to have it disappear in an instant as if you never had it before. Pull your credit score with all three of the major credit bureaus: Equifax, Experian and Trans Union. Chances are that your score is low due to all of your past missed payments and over-the-limit balances. Disputing your bad credit Either by doing it yourself or by hiring a reputable credit-restoration company, you can dispute the information in your credit report. Your dispute can be for any negative item on your credit report, not just the one you're disputing now. When you file a dispute, the credit bureaus have 30 days to investigate and respond. If they find the information in question to be inaccurate, misleading or outdated, then they must update your credit report or delete it from your report altogether. Notifying your creditors When it comes to paying off all of your past-due bills, you can be certain that all of your creditors will be aware that you intend to pay off your debts and work with you in order to do so. If you notify your creditors of your plan (availability, amount you intend to pay, and when), have them help you by calling the company with your payment and/or extension request. In most cases, this will do a Meanwhile to get you back on your feet. Moving forward If, after your creditors have given you an extension ( inadvertently ) or your payment, you find yourself unable to make that payment and get delinquent on your accounts, then you can contact the creditor and let them know of your inability to pay. If the creditor understands, coaches or advises you to come up with a plan (for the amount you can afford) to settle the account, then they may be willing to take less than is owed to ensure that they get their money. At this point in time, the most important thing is to make a plan and stick to it. Continue to make your payments according to your budget and stick to the plan in order to repair your credit. That doesn't mean, however, that you must stop living your life. If your plan includes frequent flyer miles, make sure you ask your credit card company about any programs they currently offer, also. Most major credit card companies allow for applicants to "opt-out" of receiving frequent flyer miles. If that is the case, make sure you check your reward levels to make sure you still have the option to claim your miles. If your loan company can be convinced to let you make extra payments or extend the duration of your payment, then do so. This will, of course, increase the amount of payments you have to make, but as long as you're making an honest attempt, this will never have a negative affect on your credit as long as you follow through with the payment. How do I repair my credit? There are several different ways, depending upon what has prevented you from paying your bills on a timely basis. How do I repair my credit? No one can repair your credit instantly, though each month you wait does add a point to your score. If it is extremely late, then the late payment will hold for at least six months of history instead of just three. If your credit is already wiped out, then bankruptcy may be your only option. You will probably still have to pay higher interest rates for a few years, but at least your debt will be gone and you will have a fresh start. You may be asked to speak to a bankruptcy attorney or credit repair counselor to get advice on this, but it is also a very good way to begin rebuilding your credit. If the problem is your credit card debt, then get rid of all your cards and close all accounts (you can keep one card for emergencies though). You must pay off all your cards, but through the assistance of a debt counselor or a debt management company, you will find a way to have most of your debt wiped out and eventually eliminated too. But I lost my job... Where do I start? It is important that you take care of your finances and begin to pay all your bills on time and in order. The site uses cookies. They allow us to recognize you and get information about your user experience.By continuing to browse the site, I agree to the use of cookies by the site owner in accordance with Cookie policy