Credit Repair

Do you know that a bad credit score can prevent you from enjoying a good lifestyle? This is because people make a number of decisions about you on the basis of your 3-digit score. Therefore, if your score is not so good, then seek credit repair advice to fix bad credit, which in turn, will increase your score.

How to get credit repair advice

There are several credit repair companies that offer credit counseling sessions. You can go for such a session, where a credit counselor can suggest suitable ways to improve your score. You can also seek credit repair advice with the help of online forums. Just post your questions in the credit related online forums and community members and experts will answer your queries.

How to repair your credit

It is quite important to check your credit reports at regular intervals to find out whether or not there is inaccurate negative information in your credit report. As per Federal laws, you can access a free credit report once a year. Therefore, get a copy of your credit reports from each of the 3 bureaus namely, Equifax, Experian and TransUnion.

After obtaining your reports, follow these 3 steps to repair your credit record and increase your score:

1. Review and dispute negative information: You have every right to dispute any information in your report, which you think is not correct. However, review the reports carefully so that you dispute only the inaccurate ones. Make a note of the inaccurate information and write a letter to the bureaus with the necessary details. It is advisable that you send a copy of your credit report highlighting the inaccurate negative information.

2. Check your debt-to-credit ratio: Your credit utilization ratio (debt-to-credit ratio) gets affected when you max out the available limits on your credit cards. Therefore, try to bring the maxed out credit cards within the limits and try to pay off the balances completely.

3. Get current on your past due accounts: Payment history is an important factor that determines your credit score. Therefore, try to make the past due payments so that your accounts get updated as “paid” or “current”.

You can approach credit repair companies for credit repair advice if you’re not able to repair your credit record on your own.

How a credit repair service can help you

A professional credit repair service can help you in the following ways:

• Analyze your financial condition and make a personalized repayment plan for you.
• Negotiate with your creditors and remove certain negative items from your credit reports.
• Offer financial advice, by following which, you can avoid debt problems in future.

It is quite important to seek credit repair advice from a reputed company. Moreover, do not make your choice on the basis of special services offered as it is not possible to remove some negative items from your reports before a certain time. Therefore, while selecting a credit repair service, beware of companies that make quick credit recovery claims as they will be of no help in the long run.