Whose responsibility is it to perform a detailed credit review? Whether or not your lenders call up credit bureaus for inquiries, you should be adopting an active debt management procedure in reviewing & repairing your credit. Do not wait until your creditors sent out costly legal drafts demanding for debt repayments or financial institutions disapproving most of your credit applications.
Purchase a credit report.
The first move is to buy a credit report. Instead of engaging an outsider to review your credit, why not take the initiative to settle your unpaid debts and unsettled financial problems? A troubled debtor must be proactive in managing his/her existing unwanted circumstances, waiting for the problems to resolved will do you no good.
You may purchase a credit report from either of the three credit bureaus; Experian, Equifax or TransUnion – any other local credit bureaus too. Do not be afraid to request for your free annual credit report as you’re entitled up to 3 credit reports on a yearly basis. It’s because you have to learn, digest and fixed your creditor’s listed bad information.
Therefore, buying a credit report from an agency or getting free ones online is a good financial decision. Problems might seem sophisticated at the beginning and that is fine for you to understand before practicing how to dispute a credit report and win.
Check for incorrect or outdated personal contact details.
In Asia-pacific regions, United Kingdom and United States of America, many people had to travel between cities due to work requirements or leisure purposes. This good problem created a barrier for credit scoring agencies and credit rating agencies. Once you’re uncontactable, nobody in business can ever perform credit inquiries, domestic checks, or do a business with you.
You’ve to update your personal contact details in a timely manner. Below is an updated guideline in fixing obsolete individual information in your credit report:
- Your name: Ensure that your name is spelled correctly. Do not wait for your bank to reject any credit related documents for a mere alphabet loss.
- Contact number: One of the most important information. Your banker has to verify certain personal particulars before disbursing a loan to your current & savings account.
- Physical address: This is different from your mailing address. A physical address helps your financial service providers to locate you easily.
- Missing personal information: Some lenders do not accept debt applications without a complete list of personal information.
- Minor credit report errors: It is wise to scrutinize your credit report for small mistakes such as a missing number (0-9) or an alphabetical problem.
Indeed, financial institutions cannot undertake such risks of delinquencies & omissions due to issuance of borrowed money (not their monies). Your lenders have to be 100% certain on your proof of identity and existence before loaning out any amount. Do not be surprised if your banks called you for an omitted error even if you didn’t make a mistake in your credit report (sometimes they’re validating your presence & callable responses).
Finding hard to perform a detailed credit check, seek immediate assistance from a friend or a family member. The person rendering quality control has to possess an important personality trait: Meticulousness. Reason being, both of you have to naturally reduce the probability of credit report errors.
Review your bad credit information.
How frustrating is it to get rejected by banks? Some common sights of credit card disapprovals and mortgage loan rejections are due to bad objects listed in your credit report, negative reviews left by creditors, and local governments depicting tax lien problems. These issues don’t go away on their own, left unattended will lead to disastrous credit problems.
It’s prudent to learn how to read a credit report and applying various debt management techniques in rectifying the errors. No, fixing your personal credit report card does not require any money. You’ve to secure a free report from the aforementioned 3 credit bureaus first.
Look out for prominent bad credit info in your report card:
- Missed payments – one of the most common mistakes for consumers is a missed payment. Your creditors do lodge for both big and small failed repayments to credit bureaus.
- Late debt repayments – some lenders invested considerable efforts in maintaining a list of bad debtors. Do not get into a local creditor’s blacklist as the industry is small.
- Tax liens – owing of tax liens is a no-go for any businesses. A few lenders are willing to take the risk of lending out sizable sums of loans to individuals who did not remove tax liens.
- Payday loans – yes, payday loans do appear on your credit report if you don’t make an effort to repay them on a timely manner – small credit problems affecting your credit score.
- Credit report errors – not all problems lie with you. Sometimes, organizations omitted certain information or missed out your payments, thereby creating an error in your report card.
To fix a credit report, take some time off to manage the above bad credit info. You’ve to file for some credit dispute errors immediately. Winning is not the right option of satisfying your lenders but demonstrating competencies in removal of tax liens, deletion of errors and improving your readability score in a credit report, do provide an assurance of debtor’s knowledge & activeness.
Fix your credit report.
There is a variety of ideas in doing up your credit report. Some people prefer to take matter into their hands. Others like to seek financial assistance from credit unions. Regardless, it is a good choice to take all into consideration before coming up with a neat plan. Never rush into a decision of sending lawyer letters to your lenders or applying for numerous credit lines in order to boost your credit score!
- Hire an aggressive credit repair company
One good way of managing a badly tattered credit report is to hire an aggressive credit repair company. If you’re overwhelmed by small & big unpaid debts, facing financial distress at an unmanageable level, finding good credit repair companies is an option.
Do not be afraid to furnish any relevant documents to the agency. An assigned agent has to be transparent with you on the potential legal repercussions hence requiring you to be in complete understanding. Provide evidence and reasoning behind your creditor’s reported bad information.
A credit repair company has the competency to do the following; a. removal of tax lien, pay to delete advice, retrieval of unpaid debts, negotiating of existing interest rate, or informing you on the do’s and don’ts of a credit repair.
- Ask a family member or relative for credit repair assistance
Another prominent way of repairing bad credit is to seek nearby help. If you lack the knowledge on fixing a bad credit report, or simply fearful of making financial mistakes, ask your family members to chip in their resource pools. It could be simply reviewing your bad information together and coming to a conclusion of calling your creditors for assistance.
An expert in your family can perform a professional credit repair. He or she may act as a liaison officer between the banks and you, asking for a removal of bad objects if possible. It is not difficult for your lenders to compromise on certain bad information due to financial implications such as inability to continue paying principle sums or servicing of late interest charges for an extended period of time – granting one-off credit card waivers on all interests.
As you can see, seeking financial assistance from anyone does help in your endeavor to a good credit repair. Do not assume full responsibility if you possessed rudimentary knowledge on how the credit industry works. Ultimately, you’re always behind-the-scenes in fixing your credit report – sometimes not knowing what is going on among your creditors & credit bureau officers.
- Do a personal credit repair
Having the confidence in fixing your credit report, after going through several rounds of credit repairs, it is time to put the applied knowledge to good use. Jumping into the bandwagon of filing of credit report disputes is a killer. Never listen to online discussions of dishing out personal dispute resolution processes. After all, you’re owing your lenders money and they do have legal rights in claiming your asset possessions.
Instead, you can draft out a comprehensive debt repayment plan. Let your creditors know that you’re taking prompt action against mitigating bad debts and unpaid settlements. It is also wise to inform them not to continue taking legal actions. Get this step done right and your relationship between creditors and credit bureaus improved drastically.
A personal credit cleanup is not an uphill task. But, it does require some credit repair knowledge in handling unpaid debts while needing emotional intelligence in dealing with your dissatisfied lenders.
Draft a credit repair plan.
After investing much efforts & time in doing an in-depth debt review, not stopping here, proceed to draft a credit repair plan. The reason behind investing (even) more time & efforts is to ensure that such financial problems do not surface again in your credit report, destroying your reputation and causing your credit score to fluctuate badly.
Since there is no such thing as a perfect +credit +repair solution, why not build up a suitable plan for yourself. The plan does not need to have a suite of credit fixes, a list of credit lawyers, or a sum of money. What a comprehensive plan needs is just pure credit repair domain knowledge, listing of bad objects and information, settlement of outstanding payments, and some assistance from aggressive credit repair companies.
Do not be overwhelmed by those monthly late payment interests or lawyer letters. Everything is going to be fine so long as you apply the right knowledge in the right place. It’s usually a missed payment on mortgages or autos that started the entire debt snowballing problem!
Good to know about check: perform a detailed credit review.
Financial prudence in continually assessing your financial standing is necessary. It is wise to check your individual credit report on a regular basis (approximately every 3 months). File a proper credit dispute to win against your bad creditors. Never attempt to consolidate unpaid loans and debts before doing a year-end credit clear up on your credit report. Always pay attention to what your creditors & lenders call for local credit inquiries!
Quote of the Day: “Check, check & check!!– KIG Hall [2013-2018]”
» Pros & cons of a credit repair: Beautify your credit report nicely!
» What you need to know about credit report: Know whether a claim is right or wrong!
» What you need to know about a credit score: Check out local credit scoring models!
» What you need to know about a credit repair: Knowledge is freedom!
» Dos & don’ts of a credit repair: Dos and dons of a credit repair!
This article was originally published on February 28, 2014. It has since been updated.