It’s a common belief that an individual must hire a professional to repair their credit, when in fact there is nothing a credit repair company can do that cannot be done by an individual such as yourself. If your credit is bad, then chances are you do not have money to be throwing around to these companies. So save yourself the money and keep reading to learn how to repair your credit.
Step 1 – Get Your Credit Report. Before you begin to repair your credit, you need to know exactly what needs repaired. Get a copy of your credit report so that you know exactly what it is that has put your credit in the red. Each individual is entitled to a free credit report from each of the three major credit bureaus every year.
Step 2 – Read through the credit report and mark any items that need to be repaired. These can be any of the following.
– Incorrect information
– Past due accounts that have been sent to collection agencies.
– Accounts that are over your credit limit.
Step 3 – Dispute any information on your credit report that is incorrect. The report should come with instructions for disputing the information.
Step 4 – Resolve Past Due Accounts. Taking care of past due accounts is critical to improving your credit score. Accomplish this by…
– Do whatever you can to keep accounts from getting charged off.
– Take care of collection accounts by working closely with debt collectors.
– Pay off charge-offs.
Step 5 – Get any maxed out accounts back down to their limits. Credit utilization makes up almost a third of your credit score. Therefore, getting all of your accounts under their max values will gain credit points in your favor.
Step 6 – Get Fresh Credit. After all of the negative items have been resolved, the next step is to get positive information on your credit report. Try getting a new account and borrowing small amounts at the time: and make sure payments are never late. This will boost your score over time.