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Is Your Credit in Need of Repair? Here is Some Solid Advice

By Edited Jul 5, 2016 0 0

Repairing your credit can be the best answer to your financial problems. Proper credit can help you to obtain necessities in life that poor credit just can't. With proper credit you can purchase what you want for fair prices on loans and you are able to live where you want and do, at least to some extent, the things you would like to do. Don't limit yourself by letting your credit drag you down. Read the tips below to help you on your way to successful credit repair.

When you're trying to repair your credit by disputing negative items, make sure to keep records of everything you do. Keep copies of every letter, dispute, and support document you send out. Send important correspondence like disputes by certified mail so that you know your mail was delivered and so you can prove you sent something. You may not need all this documentation if things go smoothly, but if things don't go as planned, you may be grateful that you kept such spotless records.

Just because your credit needs repair, does not mean that no one will ever give you credit again. Most creditors set their own standards for issuing loans and none of them may rate your credit history in the same manner. By contacting creditors informally and discussing their credit standards and your attempts to repair your credit, you may be granted credit with them. If you are working to repair your credit you should take the time to create a budget. Seeing unwise spending habits can help you to decide where to cut back to free up funds to put towards reducing your debt.

You're more likely to stick to a budget if you have it written down. People looking to improve their credit score should dispute any errors they find on their credit report. This is perhaps the easiest and fastest way to repair your credit. Draft a dispute letter to send to the credit bureau where it will then be investigated. Removing errors from your credit report is simple and painless. If you are trying to repair your credit, and are being approached by a creditor for a very old debt, check the statute of limitations on the debt. If the time allowed by the statute of limitations on the debt has run out, they have no legal recourse to collect that debt any longer. Even if you don't pay, those debts will fall off your credit report.

Perhaps the greatest tip a person can implement when trying to repair their credit is to learn how to budget their money. Give your self a tangible and set amount you can afford to pay down your debt each month and you will have a much better idea as to how long it will take you to pay off all your debt. If the credit bureau agrees to remove the disputed item from your report, be sure to get a copy of the decision in writing, a copy of your revised credit report, and all documents that you had submitted in filing this dispute. Sometimes the same error can reappear on a report a few months down the road. Having proof that the error is a confirmed mistake can save you from the hassle of refiling the dispute.

It is a good idea to eliminate unused available credit. Call and have your creditors reduce your limits. Potential lenders view available credit just like actual debt since you can use it any time. If you will cut out the extra, it is a quick way to bring down your "debt". If you've examined your credit report and can clearly see errors, contact the reporting bureau immediately. Although each report may contain different information, the reporting agencies will contact each other with any updates to information that may be incorrect. The reporting agency should also notify you if they've fixed the error, and send you an updated copy of your credit report without charge. A good thing to do if your credit is in trouble is to call your creditors and try to negotiate your debt such that your payments are not considered delinquent or insufficient. Often times a deal that makes them more money in the long term will be something they readily accept. If you want to remove inaccurate negative items from your credit report, file a dispute. You can do this yourself, for free, for any piece of information on your credit report that you believe is incomplete or inaccurate.

You'll need to file the dispute in writing with the reporting company, and include copies of any documents you have that indicate why you feel an item is wrong or incomplete. (Don't send original documents!) Consolidate many of your highest interest rate credit cards into one large balance with a lower interest rate. You could do this by transferring all of your balances onto your lowest interest rate credit cards. However, make sure that you do not go over the maximum balance of your lowest interest rate cards, or you may actually do damage to your credit. Believe it or not, your overall credit rating also affects your auto insurance premiums. So if you want to find cheap, quality car insurance, one way you can save money is to tie up those loose ends with the creditors. Insurance is all about risk, and someone with bad credit naturally poses a larger risk.

Fix your credit rating and you can save some real dough on your insurance. If and when you pay off a creditor, make sure to keep a copy of the statement or receipt that says you are paid in full. Having this will be necessary if the creditor fails to report it to the credit bureaus. You can then send it in with a letter to the credit bureau and have the information changed to reflect that the account is paid off. The answer to your problems can be great credit. Many people suffer from poor credit and therefore also have to endure higher interest rates or definite no's from lending companies and banks. Don't take no for an answer anymore and take the first steps to repairing your credit. Apply the tips from the article above to help you on your way to a higher credit score.



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