Have Bad Credit? Try Credit Repair

By: Kameko Oliver

Having a bad credit score has several implications, one of which is that it can affect your chances of getting a loan. To fix a bad credit score, many people find it advantageous to try credit repair. Some of the ways of doing credit repair include keeping debt in control, getting copies of credit reports and disputing inaccuracies, doing goodwill negotiation, and seeking help from companies that provide credit repair services.

Keywords:

credit repair,credit report repair, FICO score

The effects of having bad credit can be far-reaching. Among the main disadvantages of having a bad credit score is that it can affect your chances of getting a loan later on, prevent you from getting a new credit card, or even keep you from being accepted for a job. Lenders such as banks and other financial institutions will take a look at your FICO score to see whether you are capable of paying back the loan. This FICO score is an indicator of the likelihood that you will default on a loan. If your FICO score is low, chances are you're going to be turned down when you ask for a loan. Aside from that, credit card companies are likely to refuse your applications for a credit card in case you want a new one.

Start taking control of your debt.

The first thing you have to do once you realize that you have bad credit is to take the time to think about how you're going to improve your credit score. There are many ways by which you can do credit repair, and it's always best to start early. You can do credit repair by yourself, or you can choose to get some help from companies offering credit repair services. One of the most important steps you have to do is to make sure that you keep your debt under control by avoiding accumulating any more of it.

Get copies of your credit reports.

Before you start doing credit report repair, you first have to know what exactly you need to fix. Your credit reports contain information that lenders and other companies will see, and it would be good for you to get copies of your latest credit reports from the three credit bureaus. In case you find some inaccurate, outdated, or misleading information on any of these credit reports, then you should dispute the information so that they can be removed from your report.

Do credit repair by goodwill negotiation.

If you want to get some information removed from your credit reports, you can do this by doing goodwill negotiation. Goodwill negotiation is a way to do credit report repair by negotiating with creditors and asking them to remove various questionable items on your report. It won't cost you anything to do this credit repair, and having several items removed from your reports can make a substantial difference.

Do credit report repair by credit disputation.

According to the Fair Credit Reporting Act, you have a right to contact credit bureaus directly and dispute questionable items on your reports. When you do this, the items you dispute will have to be reviewed by the credit bureaus. In case they don't find any proof that the items you're disputing are correct, then they will be obliged to remove those information from your reports.

Get help from companies providing credit repair services.

If you're having a difficult time doing credit repair on your own and you want the help of professionals, you might want to consider contacting companies who are offering credit repair services. They can help you when it comes to negotiating with creditors or disputing items on your credit reports. They can even help you prepare a debt management plan or help you plan ways on how you can pay off your debts quickly and increase your credit score. What's great about getting help from these companies is that you won't have to pay as much as you would if you get the help of a lawyer. Aside from that, you can be sure that you'd have the help of a professional who will guide you every step of the way.