Record layoffs, record unemployment figures, record home foreclosures, can all wreck a perfect credit score. Repairing your credit can be done, but it will take time, some hard work and commitment.
Bad credit scores can keep you from getting loans, credit cards and maybe even a job. You can always hire a company to fix your credit problems, but you can also save money and do the work of restoring your credit yourself.
First things first. Before you can know how much damage needs to be repaired, you’ll need to look at what the credit bureaus are reporting about you. There are 3 credit reporting bureaus: Experian, Equifax and TransUnion. You need to get a report from each of these bureaus. Why get all three? Three different bureaus could have 3 different reports. You need to compare all three to get a clear picture of where you stand credit wise. You are entitled to one free credit report a year from each of the bureaus. You can request your free report online at www.annualcreditreport.com or you can call 877-322-8228.
Once you get the reports, thoroughly go through each one. If you find any errors, you can dispute the information. You can send a letter to the credit bureau with the erroneously information. Past due accounts can have a major negative impact on restoring your credit. Try to get current on accounts are behind or past due. If past due accounts reach the charge off status, try to pay them.
If you have maxed out credit cards, try to pay them down to less than half the limit. Once you’ve cleaned up some of the negative items on your credit reports, try to get some positive items on there. You can open up small new accounts and make sure to pay them on time to keep your credit scores rising. Department store credit cards and secured credit cards are a good place to start.
Your credit wasn’t ruined in a day; it won’t be restored in a day either with some kind simple of credit fix solution. Just stay commitment to cleaning up your credit and you will be able to get it back under control.