In today’s economy, a person’s credit is their lifeline. You must have good credit to obtain financing and in many cases you must have a good credit score to get a good job. More and more employers today are using credit history as a gauge for job qualifications. When you have been through some financially difficult times, you know that your credit score has likely suffered.
Credit repair is a way to undone the past and correct your credit score, getting you back on track financially. There are several credit repair services out there that offer to do just that quickly. However, it is important to understand the way credit score reporting works. Once you know that, you will know that the promises of increasing your credit score by 100 points are not possible in a week’s time.
Whether the problem lies in the fact that you lost your job and couldn’t pay the bills or you have a few credit cards that you went over the limit and couldn’t meet the minimum payments, the fact is that the problem is already there. Now you need to find a way to fix it. Credit repair involves undoing what has already been done either through negotiation, dispute or simply paying the bills off.
There are also credit repair tips that will help you to correct the problems on your own or you can choose to use a credit repair service. Keep in mind however, credit repair services charge a fee. If you are already financially strapped, it may be a better idea to try to resolve the issue on your own.
Do-It-Yourself Tips for Credit Repair
The very first step in credit repair is to obtain your credit report. You will want to make sure you get reports from all three of the major credit reporting bureaus. Once you have those, you want to look them over carefully. It is very possible to find errors or inaccurate information on the report which may be affecting your credit score.
Dispute the items that you think are in error. The credit reporting bureau will do an investigation and determine if the items are accurate or not. If they find them as inaccurate, they will be removed or corrected, whichever the case may be.
Once you have done that, it is important to try to work out an arrangement with each company that is reporting negatively about you regularly first. While all of the negative reports need to be worked out, the ones that are most important are the ones that are reporting every month. Some only report quarterly or yearly, making the negative impact on your credit report less.
Credit repair takes time, whether you do it yourself or utilize a credit repair service. Things that have taken place didn’t immediately damage your credit, but did so over time. Fixing them will also take time.