When You Need Credit Repair

You need credit repair especially if your credit score is less than 600 points, because your credit score can make may things impossible, like getting a loan, renting an apartment, getting a job, and many other day-to-day activities.

If your credit score falls really low, don’t panic because you can fix it. Don’t even think of filing for bankruptcy, unless you need to stop a foreclosure or stop enforcement of a judgment, because a bankruptcy will lower your credit score and will be on your record for 10 years.

Credit repair is easy if there are any mistakes on your credit report. You can check your credit reports by getting a copies from one or all of the three credit agencies: Equifax, Experian, and Trans-Union. You can get free reports from all three at www.AnnualCreditReport.com or you can buy a 3-in-1 report that shows all three in one report.

Once you have your credit report(s), check them for errors and conflicts. Sometimes one agency will report some things differently than the others. That should be easy to correct.

If you are sure that an issue has been resolved, ask the agency to change it with a letter and evidence to prove your point, and they usually will correct the error.

But what do you do if the credit report is accurate, yet negative? You can still contest old debts, you can start making payments on time or early, and you can pay off some debts, if possible. If you need help, talk to a credit counselor who can even act as a negotiator and may be able to consolidate your debt at lower interest and easier payments.

Any debt consolidation package must in writing because it is a legal contract between you and the creditor. . The contract can avoid problems in the future, like if the creditor decides to cancel the agreement.

Once you consolidate your debt, you need to come up with the money to make the payments on time or early, and that usually means cutting your expenses and/or increasing your income.

If you can’t cut expenses enough or increase income, you may need to sell off some of your valuables or find a friend or family member can temporarily lend you the money.

Whenever you pay off a debt, make sure you get a settlement letter from the creditor and send a copy of it to all 3 credit bureaus so they can update your credit report.

There are several lessons to learn after you have repaired your credit.

First, keep your expenses down. When you get credit, don’t max it out, because it’s hard to pay it back.

Second, pay more than the minimum, to get the balance down.

Third, if you can’t do it alone, ask for help, because there are lots of credit counselors ready to help, some may be free.

Fourth, pay your bills on time or early and in full.

Credit repair wouldn’t have been needed if you had been more careful. So work to fix your credit, then keep it up.

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