If your credit history has been damaged, can you fix it on your own? Indeed, you may not need to get professional help from a credit repair company to see a significant improvement to your credit score.
Consider the following free credit repair tips for you:
Credit repair scams
Watch out bad credit repair scams. When seeking assistance, be sure that you’re getting help from the right source. You need to know how to spot a legitimate credit repair company from a fake one. Some telltale signs that you are working with a scam agency:
- You tell them all the info on your credit report is correct but they say it doesn’t matter. They can have it removed anyway.
- They tell you to apply for credit using a CPN or EIN instead of your real SSN
- They try to sell you a “special letter” that is GUARANTEED to remove all negative tradelines on your credit report
Visit the FTC’s website for some information on how to avoid credit repair scams.
Know your consumer rights.
As a consumer, you have the right to dispute errors in your credit report. Order a copy from each of the three major credit bureaus (TransUnion, Equifax, Experian) and make sure that it does contain any misinformation.
In case you find errors, send a letter of dispute to the bureau that issued your report so that an investigation can be conducted right away.
TIP: Do NOT use online dispute forms. In the fine print, you will see that you agree to NOT sue the credit reporting agency if they do not update your credit report. That means even if you furnish proof that it’s being reported in error, but your creditor keeps saying its correct.
The credit reporting agency may side w/ your creditor! And all you can do is go into mediation, instead of telling them you will sue them and FORCE them to update your credit report. Yes, this is a nuclear option, but many people have successfully sued the credit reporting agencies and won!
Get your free credit report.
Everyone is entitled to get one free credit report each year from www.annualcreditreport.com. This is the only website authorized by the government to issue free consumer credit reports. Many credit card companies now offer access to your credit report also.
Create your personal debt repayment plan.
When evaluating your credit report, check which of your debts charge the highest rate of interest. It is very important for you to complete your payments on those accounts at the soonest possible time to stop your debts from further building up. Debt repayment must be on top of your priority even if it means you may need to give up some of your personal luxuries to cut down your debts.
Work out your personal budget plan.
Create your personal budget plan so you can distribute your monthly income according to your obligations and personal expenses.
Negotiate with your creditors.
Here is an important bad credit repair strategy. Never hide from your creditors even when you can’t pay your bills. The best thing to do is to speak with your creditors about your problem. The most important thing is to show your creditor that you are doing your best to keep up with your obligations. Most creditors are willing to help out a borrower experiencing financial difficulty by adjusting their terms.