There are millions of people that have less than ideal credit scores and reports with delinquencies. This happens because life happens and sometimes people make mistakes with their finances. This is something that can be repaired and those repairs will increase credit scores to acceptable levels. These repairs aren’t hard to do and they are fairly easy for someone that is willing to look at their credit report and follow up with the credit bureaus.
Options for Repairing Credit
When a person decides to repair their credit, they can do one of two things. They can hire a credit repair firm to do the work for them and pay for it. Those that choose to hire an agency to do it for them will have to meet with a counselor to discuss their needs. Those meetings are very thorough and personal. These counselors often want to know what put a person into this position and they begin to guide them on what to do to get them back on track. As progress is made, their counselor is normally in contact with their clients and they consistently work on their plan to improve their credit.
There are some that don’t want to work with a credit counselor on something so personal. They don’t want others pouring through their poor financial choices and don’t want to give any explanations as to why they made the choices they made in the past. Those that chose to repair their credit scores without a counselor can do it with a plan and some work.
Repairing Credit Alone
One of the first things that a person should do when it comes to repairing their credit is to obtain a copy of their credit reports from all three credit bureaus. This is important because these reports are updated constantly and when they are updated, changes can be seen by everyone that looks at that report. Every year, the three major credit bureaus offer a free report to those that ask for them. When people take the time to look at their credit reports, they will often see why their score is the way it is.
Once a credit score has been obtained, it’s important for people to look at it in detail. There will be a listing of things that are reported against them. If there are things that are reported falsely, people have the right to open a dispute. When a person sees something inaccurate on their credit report, they should contact the reporting agency and dispute it via letter. There are many templates that can be used for a dispute. This is an important step.
Another thing that a person can do to begin repairing their credit is paying off the creditors they owe. As people begin to pay down their debts, it reflects in their credit report. As payments are made, they are reported to the credit bureaus and it updates their report. The more payments that are made on time, the higher their credit score goes and the better their credit report looks.
People that are trying to repair their credit should maintain the payments on their current bills. It is very important to stay current on all bills because those payments are also being reported to the credit bureaus. This will also reflect well for anyone with credit issues.
No New Obligations
The last thing that people should do when they are repairing their credit is try to attain new debts. This is something that should be done when they have cleaned their existing reports. It looks horrible when someone that has bad credit is constantly trying to get more credit. Not only does it look bad, it lowers a person’s credit score.
Anyone that wants to repair their credit can do it. They can repair their credit will time and effort. It won’t happen overnight because things have to be verified and proven. As soon as a person begins the work on their credit reports and scores, they will begin to see a dramatic change in their score. Although it takes time and effort, a good credit score and report will lead to a better financial life in the future.