There is nothing you can do – even to request for a home equity mortgage, college debt, or personal loan – considering your bad credit. It’s difficult for lenders to review your applications as the quality of personal finance is bad. How are mortgage lenders & banks going to determine the type of mortgages as well as your interest rates? Find out what you need to know about credit repair here.
How do I fix my credit on my own?
It is a misconception that only credit repair companies can fix your bad credit. In actuality, you can fix your credit yourself – sometimes known as do-it-yourself credit repair. As for credit works, the internet provides a wealth of information.
Learn more on how you can “fix” credit on your own in Figure 1.0 below:
Figure 1.0: How can I fix my credit personally?
|Retrieve credit report||Experian, Equifax or TransUnion | Ask a consultant to pull your credit reports for a fee.|
|Remove negative items||Contact all of the credit bureaus and creditors for removals.|
|Improve my credit score||Pay off a debt; credit card, outstanding mortgage or loan.|
Doing a credit fix on your own can improve communications with credit bureaus, debt collectors, collection agencies and creditors. It’s a skill that lasts a lifetime. Individual cleanup campaigns can help to bolster your credit scores.
Note: Don’t try to reverse correct information verified by creditors & court judgments.
Credit repair improves a consumer credit report, not about raising fico scores.
A credit check is done at the initial stage of credit repair. It attracts a fee to pull your credit report under the help of a consultant. It remains free if you request for a free annual credit report from any of the three credit bureaus.
Learn about how you can effectively use credit repair companies in Figure 2.0 below:
Figure 2.0: How do credit repair companies work?
|Retrieve credit reports||Credit repair companies charge a fee in pulling your reports.|
|Review||Detailed reviews on negative items being done.|
|Disputes||Raise disputes to credit bureaus and creditors.|
|Attorney-General||Seek advice from law firms for litigation cases.|
Good news is that most processes are completed in-house. Bad news is that some credit repair companies charged fees for initial setup costs and pulling of your credit reports. Such services can be done at your end. It’s up to you in deciding whether to go for professional service or doing it by yourself.
Note: Most credit repair reviews stated fees in retrieving your credit report.
Your credit score is a motivation for lenders.
Not many consumers take care of their financial health. They refused to acknowledge that credit scores remained the key indicator for almost every lender to determine the exact interest rate in issuance of debt.
Find out what a fico credit score can derive with in Figure 3.0 below:
Figure 3.0: How can fico credit scores impact my interest rates?
|Poor credit score||330-450||Not approved.|
|Below average credit score||<549||May not be approved.|
|Decent credit score||550-679||Higher interest rates.|
|Good credit score||680-749||Good mortgage & credit card rates.|
|Excellent credit score||750-860||Best rates for most financial products.|
A low credit score is not recommended. Credit repair is needed to change your financial records. Use free credit score check tools such as Credit Karma or Credit Sesame. Determine a good interest rate and work toward the goal.
Note: Never accept any mortgage interest as financial repercussions is bound to occur.
How do I remove negative items in my credit report?
No one handles your credit accounts better than you do. Unless the person or company is incentivize, there is little to no credit help being employed. It’s good to know how to remove bad items in your credit report.
Learn more on the aspects of removing negative items using disputes in Figure 4.0 below:
Figure 4.0: Filing for disputes to remove bad items
|Credit bureaus||Send in dispute applications and wait for 30 days response time.|
|Creditors||Send in Section 609 attorney written credit dispute letters.|
The best credit repair companies sent in letters of disputes that written by attorneys in order to maximize chance of recovering your scores. You can, however, repair your credit on your own. It doesn’t matter which way you took so long as the items are removed in the quickest way possible.
Note: You may purchase Section 609 attorney written credit dispute letters and send out too.
Doing nothing is a formidable strategy.
Sometimes, doing something may get you involved in scams or frauds. Why not, choose to do nothing? If you’re afraid of falling into scam credit repair companies, no worries, just seat back and wait for those negative items to “fall” off your credit reports naturally.
Take note of the exceptions under statutory laws in Figure 5.0 below:
Figure 5.0: Credit repair statutory laws
|Chapter 7||Bankruptcy & unpaid liens up to 10 years in credit reports.|
|All laws||Unpaid judgments up to 10 years & liens permanently in reports.|
Apart from the exceptions made under statute of limitations, closing in on deadlines, you can just let the bad items slide off your reports in a natural way. Letters of dispute only freezes the credit report and leaves it hanging. The best option is to do nothing at all.
Good to know about what you need to know about credit repair part I
Nothing beats high-quality credit & credit repair education. Advices do paid well once you’re in touch with lenders & creditors. Don’t attempt to breach anyone’s trust by doing illegal or unethical credit fix services. Jail term is part of the consideration. Never go for any business that looks “shady” or requests for advance payments – all against the Credit Repair Organization Act – FCRA & CFPB.
People also ask:
Quote of the Day: “Knowledge is power, Applied knowledge is freedom – KIG Hall [2013-2018]”
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» What you need to know about a credit repair: Knowledge is freedom!
» Scam alerts in a credit repair: How to I prevent identity theft & scams?
This article was originally published on February 12, 2014. It has since been updated.