There is no point in rushing to repair credit considering the fact of poor debt management techniques that no new & existing lenders are willing to open your credit file. An optimal solution, usually taking the longer route in undergoing a professional credit repair, is to seat down and face your bad debts & outstanding dues. Knowing how to manage your credit portfolio is the key to attaining financial freedom.
Check my credit report.
Check my credit report. Much emphasis has been placed on seeking debtors to perform a detailed screening on their own credit reports. It is difficult to navigate around potential & existing lenders because your report card does not look fantastic. A bad object dangling at the top of a prominent display is not going to let banks approved anything.
List out your credit report’s bad information. Common problems are unpaid mortgage loans, outstanding credit card bills, late payments on tax liens, missed debt repayments and other creditor’s claims. No, it is your fiduciary duties in penning down each and every problem associated to your credit report.
Big problems, small problems or non-existing problems are all problems! You needed to do some checks on your credit report before implementing the right strategies in overcoming problems in a credit repair.
Manage big errors & problems.
After learning about your credit report errors, continue to list out prominent big problems & mistakes. Bigger credit problems are of hindrance in repairing your credit. A small mistake does not influence or affect your credit score. Much more financial repercussions do occur during the process of fixing with freeze in credit report reported by bad creditors.
Here are some reported credit report errors & problems that needed a thorough credit repair:
- Unpaid mortgages: Failed or missed the first mortgage repayment, second mortgage debt repayment and other relevant unpaid interests might end up in two conditions; a. experiencing mortgage foreclosures & b. liable for jail terms.
- Tax liens: Outstanding or delinquent tax liens do get you into financial distress; local governments and credit bureaus do chase on these private & personal after unpaid taxes – leaving a mark on your credit score even paid liens for up to 7 years.
- Personal information: One of the biggest issues is errors on credit report info; wrong name, date of birth, gender, age, income tax ID (IRS), passport, contact numbers, account types, outdated ownership status etc. – so many errors on personal identity.
- Disputing errors on credit reports: Another big problem is on failing to inform your credit reporting company in writing on past & existing mistakes in disputing errors.
- Other creditor’s claims: Negative reported information such as bad objects can undermine your consumer rights in filing for credit report errors.
What kinds of errors should I be looking out for in my credit report. This is an important question to ask on a regular basis. Big problems don’t necessarily need to be obvious enough for you to spot. It is because many credit report errors would be identified during the process of credit repair. You may tend to accidentally left out some of the more prominent & problematic credit report errors.
It takes just one big credit report error to badly affect your credit score. Although there isn’t a huge positive correlation between your credit report and credit score, having bigger credit problems do impact your report card. Learn to first identify those credit report errors and take preventive measures in filing for legal credit disputes.
Hire credit repair companies.
Still feeling confused on the differences between big credit report errors and small credit report problems, the truth is everyone doesn’t know how to fix all the issues. This calls for wisdom to hire credit repair companies. At best, do engage some reputable credit repair companies.
A good credit repair agency – sometimes known as a credit fix firm – does not need to be expensive. Proper debt management techniques, implemented by an assigned dedicated agent, can help in improving your credit score while lowering the cost of credit repairs. It is imperative to know your credit report errors before asking an agency to fix your credit.
Not all credit repair companies offer sub-specialties. You’ve to identify a one-stop credit repair specialist clinic in performing authentic credit fixes, somewhere around common credit problems such as bigger reported errors above and resolving stolen identities. Do not leave any chances to risk for a delinquency status.
Re-look smaller issues.
Upon completion in dissolving your big credit problems, it is crucial not to forget about the smaller errors in your credit report. Big or small errors are equally important in progressing towards an error-free credit report.
Some good debtors remained discipline in letting reputable credit repair companies to manage their credit reports entirely. It is prudent for them to let experts handle their existing & upcoming problems. Outsourcing to credit repair specialists do reassures a debtor that his or her credit report is in safe hands – leveraging on its expertise to remove paid tax liens & negotiate for better interest rates on existing unpaid mortgage claims.
In a research report done by Experian Creditworks, approximately a year ago, the report demonstrated up to 79% of consumer debt reports showing minor credit report errors. It does not depict a positive correlation for minor disputed errors against a credit score. One cannot deduce a complete irrelevant linkage but certainly having at least some negative impacts on your credit scores, no?
Either you can seek a prestigious credit repair company in fixing those smaller errors or do it yourself. Both options are viable solutions so long as you do attend to the matters.
Set up a comprehensive credit repair.
To prevent future credit report errors or other problems in arising, you’ve to develop a comprehensive credit repair. It could be observing a daily debt checkup timetable, a budget app tracker, a monthly credit card statement review, a weekly credit inquiry or hiring a credit monitoring company. Anything that manages your personal finance extensively can be a good choice.
Planning for a comprehensive credit repair is not enough. You have to ask your friends or relatives in following your credit repair process closely and vice versa. Reason being, sometimes you do miss out certain important debt indicators or failed to notice some changes in your credit score. A friend (not a foe) is able to point out your mistakes and you can immediately rectify your credit report errors.
As time goes by, you’ll be familiarized with your credit repair system. Conduct a highly performing credit report by investing in a reputable credit repair company. The best option in repairing bad credit is to get your hands dirty as well as asking for financial assistance from local credit repair companies.
Additionally, you can too seek debt relief aids from credit unions. A union has special rights in granting you loans at cheaper rates when comparing to banks financing loan rates. It is a privilege to borrow some money from a credit union’s financial schemes instead of further into debts with higher interests.
Proper credit control has to be induced. You’re not in an advantageous position when the bank’s lawyers sent bankruptcy filings to your mailing address or final reminders on late debt repayments. These problems started out from a small issue before bursting into costly legal suits at local jurisdictions. Never take a quick credit fix for granted.
Good to know about progressive: how do I repair my credit?
Given ample time & efforts, in the long run aggregate debt payment curve, both creditors and debtors tend to build up trust in the process of a credit repair. How do I repair my credit? This question is evergreen due to latest financial crisis or impending economic upheavals. Take care of the downsides by investing some cash in managing unpaid debts and liabilities. Never forget your hard-earned efforts in doing a progressive credit repair!
Quote of the Day: “Freedom isn’t built in one day – KIG Hall [2013-2018]”
» Aggressive credit repair: Ensure consistent paid efforts!
» Start a daily plan for credit repair: Devise a plan to get out of debts!
» Hire reputable credit repair companies: Who 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 08, 2014. It has since been updated.