Having a bad credit in America makes life very tough and expensive. For every investment or purchase your credit score will be checked. If you suffer from bad credit your EMI’s will be hiked, your loans might be denied, etc.
If you wish to save money on credit cards, loans and insurance you need to repair your bad credit. A good score in credit will open up many new opportunities for you, employment and even promotion. If you wish to start your business your good credit score will help you get financial support for your business. There are many agencies that work for you and help you get a better score.
However, these are external bodies. The way you understand your business issues or credit problems the agency might not. Even if it does, knowing to repair your bad credit yourself will help you stay away from any such problems. To help you with this we have listed down a few points that will help you do it yourself.
1. Get your credit reports :
You must know where do you stand as per the ratings of Experian, Equifax, and TransUnion. Their reports might vary to a certain extent but the baseline would remain the same. Once in a year you can order for your free report from these three agencies. If your insurance or any other loan request is denied, within 60 days of this denial you can get a copy of the report.
2. Check the reports:
Most of the times, each client gets a wrong or mistaken report from one of these top three agencies. Check the report carefully. If there are any mistakes get it corrected and if those statements stand true than you need to rectify it by clearing your bills and standing in the market.
3. Dispute and Document: Double d strategy:
If you have any mistakes in the report, mark it properly, highlight it and encircle it. Then fill in the dispute from and also attach a photocopy of the mistakes encircled in the report. Also, provide all the required documents to prove that you are right and the mistakes you have pointed are right.
Some mistakes are such that you need to discuss it with the analysts so that the problem is understood and solved.
4. Solve & Dissolve Debt:
Check for the remaining problems that stand true in terms of the report. To improve your score you need to clear all your debts so that your score improves. The ratio of credit limit and credit balance in your accounts should never be more than 0.80.
Clear the bills, close all the accounts that you do not need and try to get rid of all negative remarks in the report.
Add positive comments to your report:
At some point you might have been approved of credit and at some point denied. The people who have approved it for you can give a positive statement which will help you improvise your report.
With these simple ways you can do credit repair on your own.. Next time before hiring an agency to work for you try to find out whether you do it yourself.
