7 Surefire Tips for a Successful Credit Repair Process
It is estimated that over one-third of Americans have bad credit. Whether it’s due to falling into debt, bankruptcy, or identity theft, it is hard to achieve your financial dreams when your credit score is mediocore.
1. Take Stock of Your Finances
The first step towards rebuilding your credit is assessing the current situation. Take note of how much debt you have. What type of debt do you have (personal loans, credit card debt, etc.)? You may also want to figure out interest rates on your balance. Once you have an understanding of the amount, you have to figure out how quickly you can pay it off.
2. Make a Plan for Repayment
Creating a plan to repay your debts is the #1 key to a successful credit repair process. Devising a budget and taking action towards repayment – no matter how small – is the best way to get started. With a well thought-out plan that factors in time, money, and effort, you can stay specific goals while tracking and monitoring your progress.
3. Contact Creditors
Negotiating with creditors can be challenging. However, by communicating openly and consistently, it is possible to make payment arrangements or fix errors on your credit report. If you feel overwhelmed or need advice, credit repair services can help facilitate the process.
4. Become an Authorized User
It’s possible to boost your credit score by becoming an authorized user on someone’s account – with their permission. The credit history of the primary user will be factored into the authorized user’s credit report. Be aware that this won’t help your own credit utilization ratio, as the credit line belongs to the primary account holder.
5. Dispute Inaccuracies
If you discover any inaccuracies on your credit report, it is important to dispute them in writing. This could include errors in identity, payments made, balances, or any other items on your credit history. The disputes process is free to conduct and can be done with all three credit bureaus – Experian, TransUnion, and Equifax.
6. Stop Using Credit Cards
If you’re serious about rebuilding your credit, you may want to consider not using credit cards. If you cannot control your spending, opt to pay with debit cards or cash whenever possible. This will help you stay away from unnecessary debt and limit your monthly expenses.
7. Monitor Your Credit Regularly
Staying on top of your credit is important as you rebuild. Many credit bureaus offer free tools to help you monitor your progress and alert you to any changes on your report. In addition, you can also consider signing up for monthly credit monitoring services. This way, you can ensure you are taking the right actions towards improving your credit score.
By following these 7 surefire tips, you can successfully rebuild your credit and meet your financial goals with confidence!
