Consider spending some time in buying a credit report and venturing into different strategies of repairing your credit. Lenders and creditors often performed inquiries on your credit file so as to determine whether or not to do business with you. A good credit report, likely having less bad items nailed, seems to be more attractive for lenders to borrow you a sizable amount at better financing rates.
List out bad objects & information.
Purchasing a credit report is clearly not enough. You’ve to work on credit repair! Work has to be done in order for your existing & new lenders to take notice on your diligent efforts before deciding on the types of credit lines to be issued out to you.
A good debtor invests time and efforts in listing out all bad objects. Common bad objects might be missed payments, late payments, failed payments, and negative claims on personal assets – usually the causes of not repaying mortgages & autos. The bad information penned down is certainly going to affect your overall financial standing albeit not having a universal credit rating.
To list out bad objects & information is not difficult. It merely consumes some energy in figuring out what are the verified claims and negative claims on your assets. Tax liens cannot be avoided based on substantial evidences. An error or obsolete information can be disputed against your creditors via contacting a local credit bureau agency.
Implement a good credit repair process.
After fishing out the respective negative claims from your claimants, you have to undergo the hassles of implementing a good credit repair process. A plan needs to be fixed for you to observe, sometimes known as a schedule or timetable. It must consist of the dates of completion, categories & sub-categories of a credit fix, and some contact numbers.
A good credit repair has a detailed process. You’ll be assuming responsibilities in doing up bad debt removals, seeking redress from credit bureaus, asking for time extensions on late debt repayments, and strong backings on paid unverified claims. No amount of work is going to get done if your creditors had proof of outstanding balances in their accounts.
Rectify your errors & fix the discrepancies in your credit report first. A negotiation is going to take place once you’re confident of your qualified items to be disputed and nothing more is adding up to the list of filed disputes. The process takes approximately 2 weeks and total period of negotiations can take up to 3 months or more.
Use a directory listing to find the right business & credit bureaus.
If you don’t know who to call, please use a directory listing to find the right business contacts such as local credit bureau offices, credit unions, debt management committees, debt collection agencies and financial institutions. These contacts are transparently listed in business directories as they are licensed by local governments to operate legally.
Do not be afraid to pick up the phone. Nothing will be done if you prepared a long list of disputes ready to file but not having a slightest clue of who to connect. The most appropriate way is to call up a credit repair company or a credit bureau. Both parties do have necessary contacts and lines to hook you up to the right person. It’s going to be slightly troublesome during the process of a credit “hunt” but trust the process of fixing your bad credit quickly.
A directory listing also proves to you that your creditors & business agencies are real while demonstrating your efforts in rebuilding a credit report. As time goes by, you’ll be familiar with the connections and re-negotiating your credit disputes will take a shorter period of time as opposed to the initial phase of a credit repair.
Optimize & Review your credit file.
Once you’re in touch with the respective credit functions, do not assume that the problems will go away. Credit repair is an ongoing process in which you have to continuously optimize & review your credit file. Your profile is an important indicator for banks and credit card companies to determine your interest rates and types of financing available.
If your file is thin or lack the qualities of matching the bank’s criteria, chances of getting disapproved or rejected are high. You ought to invest some time in doing credit repair optimization but doing regular credit reviews & spending some money in repaying existing bad or unpaid debts. This calls for wisdom to show efforts in fixing payment histories and for your lenders to acknowledge your capabilities in repaying new debt instruments.
A bad debtor does not review his or her credit file. The file remains thin in the eyes of every stakeholder and no one dares to issue credit notes out. Reason being, there is insufficient financial credence for local & foreign lenders to distribute financing deals while having to undertake unwanted or unplanned risks in credit management – who wants to absorb the risk of delinquency?
Ask a friend or relative.
Lastly, asking a friend or a relative to keep track of your credit repair work is important. He or she may be your best friend in helping to look after your credit file while you’re busy at work trying to generate more money & in search of new income streams. The friend has to be trusted as a credit file is highly confidential.
At best, you’re expected to perform credit fixes together with the mate. It is highly unlikely to reveal the full details of a credit report. This is to prevent or deter unwanted credit frauds such as stolen identities or identity thefts. It is because many consumers became bankrupts overnight due to loss of personal information or data breaches. Individual identities leaked out to criminal syndicates and finally transferring ownership to unscrupulous dealers for a total debt turnover.
Note: Some credit repair companies especially shady ones used stolen identities in repairing other’s credit files.
Never trust anyone 100% whole-heartedly. It is not because of lack of mutual understanding but because you are 100% responsible of your personal data & credit portfolio mix. If something was to happen (touchwood), you might faced harsh penalties or even be imprisoned for no apparent reason.
Good to know about focus: work on credit repair
As mentioned earlier, credit repair is an ongoing process. You’re in control of building up your credit histories while denoting your financial capabilities in fixing bad objects and removal of tax liens. Any claims or whatsoever shouldn’t be of great distress after learning about some highly effective credit repair strategies.
Quote of the Day: “Keep learning, keep improving – KIG Hall [2013-2018]”
» Regular credit screening: Get your financial health to be optimal condition!
» Start a daily plan for credit repair: Devise a plan to get out of debts!
» Hire reputable credit repair companies: How do you trust?
» 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 March 05, 2014. It has since been updated.