Credit Repair Steps

When your credit becomes damaged, the road to credit repair can seem difficult indeed. However, it doesn’t have to be that way. There are simple steps that you can take to start repairing your credit right away. Combine these simple steps with planning and discipline, and you are virtually guaranteed to achieve your credit repair goals.

The first step is to access your credit condition by obtaining a copy of your credit report. This can be done very easily, right online. From the comfort of your living room, you can get access your credit report from one of the three main credit reporting companies – Equifax, Trans Union, or Experian.

While a small fee is customary, there are many circumstances in which you can get your credit report for free. If you’ve been turned down for a loan, you can make a written request, within 30 days of the refusal, to receive a copy. You can also get a free credit report if you suspect that there are illegitimate purchases on your credit card, if you are job hunting or are receiving public assistance.

Once you have your credit report in hand, you can use it as a guide to map out your return to financial health. Look it over carefully, and make sure that all the information is correct. Mistakes do happen occasionally. If you find inaccurate data, you must take immediate action to correct it by contacting the creditors or lenders involved. If you have debt, craft a budget and repayment plan. Even a small amount will move you towards your goal of financial health and demonstrate your intention to resolve outstanding debt.

Use the credit that you do have wisely. Do not carry a balance or add to the one that you already have, unless it is a true emergency. If you have a balance, stick to your repayment plan. These actions will improve your credit rating by demonstrating your financial responsibility. If you have no credit, try to obtain a retail credit card, meaning a credit card from a national retail store, such as Sears. The standards for obtaining these cards tend to be lower, as do their credit limits. It is important to remember, however, that their interest rates are often higher. Use this card to demonstrate your financial abilities and responsible attitude. Treat it with respect, as this will be your opportunity to create positive input for your credit report.

Closing any open credit accounts that you do not use frequently or that are not essential will serve to improve your credit rating, as many available lines of credit can frighten potential creditors or lenders. It looks to them as though you could be a financial risk due to your ability to take on a lot of debt very quickly.

Each time your credit report is viewed by a potential creditor or lender, which is called an inquiry, this becomes a permanent part of your credit history. Frequent inquiries can appear as though you are being turned down a lot or that you are under some type of financial strain that has you in search of credit. To avoid this negative connotation, do not apply for credit or a loan more than one time in a six-week period. Only apply for credit cards that you will really use, and use wisely.

With these step in mind, guided by your realistic financial planning and determination to reach your credit repair goals, you are sure to achieve success. Don’t wait, take the steps to ensure your financial health today.

Credit Repair Kit For Dummies by Stephen R. Bucci Essential guide to managing your credit, from fixing mistakes on your credit report, to improving your credit going forward, to establishing manageable payment plans with creditors.

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