Do it Yourself Credit Repair - Repair Your Own Credit the Way Banks Prefer
The thought of tackling a credit report is intimidating. Most people don't know where to begin when it comes to evaluating a credit report and dealing with credit repair. The credit industry encourages this attitude, counting on the mystique of the credit report to prevent people from attempting credit repair. Some consumer credit counselling companies pray on this mindset, claiming to have 'secret knowledge' that the general public doesn't know in order to improve credit. The truth is: you can repair your own credit. There is no 'magic bullet' to fix your credit report overnight, but if you learn about do it yourself credit repair, you can begin to improve your credit score today.
Look out for credit repair scams.
Literally thousands of companies exist to offer 'credit repair' services to consumers. Many of these companies do nothing other than take your money month after month. Some credit repair companies actually cause your credit to get worse, violating the terms of your agreement with your credit providers without acceptance of alternate payment plans. Your credit score could be dropping lower every month, and you might never even find out about it. If you seek credit repair help, look for a credit counselling agency - not a credit repair agency. If a company offers you resources to repair your credit yourself, it might be a legitimate organization. Beware the company that offers to repair credit for you, because they almost never follow through on their promises, and can actually worsen your credit situation. If a company requires you to sign a contract or pay them a monthly fee, avoid them. Learn how to repair your own credit, put the fees toward your credit card payments and take control of your credit report.
The Five Step Program to Repair your Own Credit:
- Order a copy of your credit report.
The first step to do it yourself credit repair is to obtain a copy of your credit report. Try the Annual Credit Report Service. Under federal law, you are entitled to receive one free copy of your credit report every year through this service. - Dispute credit report errors.
One of the easiest ways to repair your credit yourself is to correct credit report errors. Many consumers don't realize that errors on their credit reports can cause their scores to drop dramatically. By correcting credit report errors, you can take a big step in the right direction to repair your own credit. - Lower your credit balance or raise your credit limit.
One of the big things that creditors evaluate when determining whether to extend credit is your current debt ratio. Creditors want to see credit balances lower than 25% of your total credit limit. If your credit limit is $1,000, your balance should be lower than $250. If you've got a credit limit of $4,000, you can carry a balance up to $1,000. Having active credit consistently below 25% of your total credit limit is a great way to undertake credit report repair yourself. - Pay your bills on time.
This one sounds easy and obvious, but it's something that every consumer should watch closely. If you don't pay your bills on time, you're shooting yourself in the foot. By paying bills on time, you're improving your credit score every month. If you don't use credit at all, your credit report can't improve and may actually decline. Creditors don't want to see a consumer that doesn't use credit at all, because then they can't get a good idea of how responsible that consumer is with credit. If you do use credit regularly and pay all of your bills on time, you're a much more desirable prospect for creditors. Your credit score will improve and creditors will be more willing to extend credit in the future. - Learn the secrets to get a credit report agency to listen to you.
If you think credit report agencies speak their own language, you're not too far off track. There are certain key words and phrases that get a credit bureau to sit up and listen to you. Learn the tricks to effectively communicate with a credit report agency. You can't repair your credit report yourself if you can't get the credit agency to evaluate your dispute. Learn credit reporting language and you'll have their attention immediately.
Want to learn more about how to repair your own credit?
Unfortunately, you have to know about the industry to effectively repair your credit yourself. Fortunately, we've got the resources to teach you what you need to know. To learn more about repairing your own credit or how to avoid credit repair scams, check out the Credit Secrets Bible. If you're not ready to undertake the credit repair process but want to learn more about how you can improve your credit, sign up for our free newsletter. Don't wait too long, though - every day you wait is a day when your score could be going down.
