Sometimes a debtor may suffer financial crises and emergencies such as job loss, leading to delayed settlement of his debts or being unable to fully clear his debts in the time agreed with the creditor. This may in turn build a bad credit report. Credit repair involves rectifying a bad credit report through finding, disputing, deliberating and monitoring negative information in one’s credit report. Once cleared he can then asses credit facilities easily. As a debtor you caneasily repair your credit yourself unless in delicate situations where seeking professional intervention is important.
Five Steps to Doing Your Own Credit Repair
(i)Request your credit report; creditors submit their debtors’ credit report to the credit bureau that they have subscribed to. It’s therefore important to find out the information the three top bureaus have about you though they might have slightly different reports. These are: Equifax, Transunion and Experian.
(ii)Scrutinize your reports carefully; most credit bureau makes your reports from the information submitted by your creditors without verifying. This causes possible transfer of errors in at least one of your credit reports from the major bureaus. You should therefore confirm every tiny detail by having a close scrutiny of typing errors, invalid and inadequate information and incorrect account histories. Then lay out any disputable information. If you agree with the negative information on your reports, then you are in full control to improve that. You overcome that through consistent on time bill payments and early payments.
(iii) Document any disputable negative information. After thoroughly scrutinizing for any disputable information, you can complete the dispute attached to your credit report or write a comprehensive letter where you identify each mistake and give an explanation as to why it is wrong. You can also circle the errors in a photocopy of your credit report, attach supporting documents and send it to the reporting credit bureau. Make sure you retain a copy of every document sent. The bureaus will then carry out clarification within the next 30 days and give you a feedback. It’s good to contact your creditors within that time period to resolve mistakes. Any negative information removed from your report can’t be returned except with consent of the creditor who confirms its accuracy and notifies you through writing.
(iv)Embark on a debtdissolving plan; having cleared all your disputable information from your report, you should embark on a plan that reduces your debts and allows you to make on time payments. It’s important to work tirelessly to make sure no more bad reports about your credit worthiness are made about you and your accounts are not reported as bad debts. This is possible through negotiating with your creditors so that they can offer you more lenient payment terms such as reduced monthly payments and change in due dates to balance out your monthly bills. Although you will have to put up with more interest to extend the repayment schedule, itsaves your credit rating. You can then use the remaining money to clear off debts progressively.
(v)Stabilize your credit file; since your goal is to make an almost perfect credit file and avoid landing in more controversial financial situations, make sure the creditors report your latest good reports to the credit bureaus and avoid having the bad credit history reported. You can clear even the extremely bad credits such as filed bankruptcy by making your payments on time always. This will take your credit rating a notch higher. From that point you now build a strong new credit history and to prove to your creditors that you are really dedicated to make a pool of funds from which you will be repaying your debts, comfortably visit your bank, establish a savings account with them and keep it positively active.
Due to increased demand in credit repair service, companies which claim to offer the service have increased; but this poses two big questions to the consumer. Which are legitimate companies? And how do i avoid fraud?And the answer to these questions is simple. Go do the process yourself.
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