Today’s lending industry is a credit-based one and blotches on your credit report can cost you dearly. If you’ve gone through the hassles of bankruptcy or a foreclosure and have trashed your credit score, you need not fret as there multiple ways to become creditworthy again. You just need to get started and also remember that it is not going to happen overnight. The credit score of the borrowers often affect the lending decisions as apartment rates, insurance premium rates and even employment decisions hinge on your credit rating. The better your score is, the better will be the rates that you’ll be offered on the loans. With the increasing importance of credit scores, the consumers are taking more notice and are opting for credit repair. If you too are desperately trying to know the ways in which you can repair your credit, read on.
- Order copies of your credit report: The top 3 credit bureaus, Equifax, TransUnion and Experian are always ranking you in accordance with your credit score. The first job that you have to do is to order a free copy of your credit report from any of the three credit reporting agencies. It is likely that the different credit reporting agencies will speak differently about you and thus it is better to take out a credit report from all the three credit bureaus so that you know what steps to take.
- Scrutinize your credit reports carefully: According to the recent reports, every consumer has an error in at least 1 report taken out from any of the credit reporting agency. Review carefully for all the erroneous information that is dropping down the score so that you can track them and remove them. Remember that your credit report is a true reflection of your present financial worth and therefore the better your score is, the better will be your true picture.
- Dispute the errors and keep documents: The errors that you locate should be disputed by filling out the dispute form provided with your credit report. You should clearly identify every mistake that is reducing your credit score and also send a photocopy of the credit report with the mistakes. Keep documents of each and every copy and the forms, letters and all other documents to avoid discrepancies in the near future.
- Repay high interest debt: Now is the time to work out a spending plan and also repay your high interest debts at the same time. Call your creditors, set up a meeting date with them, revise the repayment structure and maintain payments so that you can boost your credit score.
Therefore, when you’re spending sleepless nights thinking about the prospects of taking out a loan at an affordable rate with tarnished credit score, go for credit repair. Take the steps mentioned above instead of paying a professional credit repair program.
This guest post was contributed by Creditmagic.org, a community to help you repair your credit, get free consumer credit counseling and tips.