Credit Repair- Getting Started
There are all kinds of credit repair tips out there. The reality is that if you have bad credit, there tons of simple solutions. It’s very possible to improve your credit and even completely fix it in a very short time period.
How? Here are four most of the most effective strategies:
#1) Credit counselling
This will not only give you strategies for better money management, but the company will negotiate with the creditors on your behalf as well. In many instances they can reduce the amount you owe substantially.
Since they are very experienced in the industry, they have a much better chance of negotiating better terms for you than if you were to do it yourself.
#2) Look for mistakes on your credit report
One very simple and easy method to quickly improve your credit is to just scan your report. Anyone can get a copy of their report for free at least once every 12 months, so it doesn’t cost you a dime.
What if you find errors?
Then just call up the credit bureau and let them know. They will look into it. If they verify that indeed they made a mistake, they will erase it from your report.
This will instantly improve your credit score. And since mistakes are quite common, there’s a good chance of this working.
And don’t give up.
Even if they don’t remove something the first time, keep after them. It might take two to three months, but eventually you can get that erroneous late payment taken off.
#3) Pay on time
This is one of the simplest methods to raise your credit. It’s so obvious it might not seem worth mentioning, but it’s one of the most important tips of all.
What if you can’t pay on time?
If this isn’t possible because you have too much debt, attempt to get a consolidation loan. This might reduce the amount you owe, and it also makes it easier for you to pay them.
#4) Build up your investments
Instead of spending on things you don’t need, start putting a certain percentage of your money away every month for investing. This is easily one of the best methods to repair your credit.
But be wary of scams.
Remember, there are many firms that go after people with bad credit. They claim they are going to help them you raise your score. But often times they just take your money and disappear.
How do you spot those companies?
Basically, if they charge you a huge upfront fee, you know they are dishonest. Also, if they say to dispute everything on your credit report even if it’s right, it’s certain they are not legit.
By implementing these tips, one at a time, you can improve your overall credit rating and start reaping the benefits of having a high credit score.
FURTHER READING:
Emergency Fund 101: How to Save Money for Unexpected Expenses
