Need to Fix Your Credit?

Using credit is a way of life in America and most of the world. Your credit rating affects many things in life and it is important to keep your credit in good shape. Having a bad credit score means you will get rejected much more often for loans and credit cards. Any loan or credit card you do get will surely have a high interest rate and fees. A bad score could also mean paying more for insurance and even impact your ability to get some jobs.

When you decide to fix your credit, it is important to do your homework. Whether you filed for bankruptcy or just need to rebuild your credit, you need a plan. Don’t just stop at getting the better score. Think about how you will use and maintain your good credit once you have achieved it. Write it down and set guidelines. That way you will have a better chance of preventing your credit score from slipping again.

The two most popular options for repairing credit is to either hire a credit repair agency who knows the credit laws or do it yourself using credit repair software or a good credit repair guide. With either option it’s important to obtain your 3-in-1 credit report. Which choice you make depends on your willingness and commitment level. If your time is stretched as it is and you would rather not deal with it yourself it pays to go with a professional service. If you are organized and can follow through on the process, your best option is to probably use software or a guide. Below is an overview of each as well as a little survey that will help you decide.

Hiring A Credit Repair Firm

The Credit Repair industry has boomed over recent years. There are quite a few scammers out there who are only interested in signing you up and taking your money. Pick a law firm that specializes in credit repair. This ensures that they know what they are doing, can talk the talk and make sure that your errors are disputed correctly. You need to do your homework, check with the BBB, and ask for references on any company you decide to work with. Make sure the company has a great track record and has been in business for a long time. A few companies that have good standing and reputation are: Lexington Law and Ovation Credit.

Do-it-yourself Credit Repair

Fixing your credit yourself is definitely for people who aren’t easily distracted and have some time to devote to it. It’s not the simplest of processes. Fortunately there are some good guides available and quality software programs that can assist in getting those negative and inaccurate marks off of your credit report.

The first thing you would typically want to do is order your credit report and examine it carefully. Credit reports are based on information the credit bureaus received from creditors, and they do not verify it. Nearly every consumer has an error on at least one credit report from one of the 3 major credit bureaus. Look for everything from typos, incomplete or old information to invalid account histories. Make a list of each thing you wish to dispute and why it should be disputed. Most credit repair software programs have this built in. Next you would prepare dispute letters for each error you wish to dispute and send them off to the credit bureau who’s report holds the inaccuracy. This is another place where software will very much help and keep things organized. The better software programs keep track of the entire process for you.

Once the Negative Marks are Gone, Build Up Your Credit

Once you have removed the negative inaccuracies it is time to build things back up. Re-establish good credit by paying on time, every time. Don’t let your credit go dormant, if you have no open accounts get a credit card or store card that reports to the major credit bureaus (secured credit cards are great options for people with poor or no credit) and open up a savings account. Having a savings account shows creditors that you are working to save and that you have money available in case of emergencies.