How to Fix Your Credit Report

Your Credit Report How Can You Fix

A good credit score is very important for anyone wishing to purchase a car or a home, and if yours is less than 600 you will either pay higher interest rates or be unable to get a loan at all. The best plan is to make sure your credit rate stays positive by making sure you always pay your bills on time and avoid running up more bills than you will be able to pay on your income.

In spite of all the good advice available about maintaining a positive credit score, most people eventually have a problem with their financial obligations. This can be the result of lost income, unexpected accident or illness or just plain forgetfulness. It is highly recommended that at least three or more months of living expenses be saved to help pay expenses in the case of unexpected loss of income.

If you should find yourself in financial trouble, and your credit score suffers as a result, how can you get it back in positive territory? There are companies out there that offer to help you repair your credit, but are they legitimate? Should you really trust them to have your best interest at heart, or will they just take advantage of your situation and get you even further in debt? The best plan is to do your own credit repair, but it does take some time and lots of effort.

Get a copy of your credit report from all three of the credit reporting companies. They are obligated to give you a copy of your credit report to you free of charge once each year. Go over the information on your reports to identify any false information. If you find that a company still has a false report against you after you have paid them, contact them to ask them to remove the claim from your credit report. If they do not remove the information and you have proof that the obligation has been paid, forward the information to the credit reporting agencies and ask the negative report be removed. Make sure you document all the communication you have had with the company that has posted inaccurate information, as well as any communications with the credit reporting agencies.

Although these actions do require a considerable amount of time an effort on your part, the credit reporting agencies are required to investigate your claims within 30 days. If the information you provide for dispute is accurate, all credit reporting companies are required to correct the information in your file and re-evaluate your score.

The next thing you should do to repair your credit score is to communicate with any of your creditors about delinquent accounts and let them know you want to pay all of what you owe. Most companies will allow you to set up an alternate payment plan that makes it possible for you to make smaller payments over a longer period of time. Negotiate a lower interest rate if possible, and make sure you are not late on making these payments when you have these new plans in place.

If you are employed, you may be able to take out a short term loan from your financial institution to pay off any delinquent accounts. Discuss your options with your bank or credit union and set up a plan with payments low enough that you can make without a problem. Paying off any credit card bills or other obligations will protect your credit score from further damage so you will be able to improve it again. Just make sure any purchases you make are paid off promptly, and your score will begin improving with each timely payment you make.

If your credit score is low because you never taken out a loan or used credit cards, you can build a positive credit score by taking out one or two credit cards. You may not be able to get one with a lower interest rate because of your low score, but if you always pay them off before interest is charged that won’t be an issue. Just use the cards to buy gas and groceries during the month and pay them off at the end of each month. This will build a positive credit score for you within a relatively short time.