What They Don’t Tell You About Credit Score Repair

If you have suffered credit score loss, then you need to take fast action to start your credit score repair.  With the financial crisis that has hit the US and Europe, many people have had their credit history tainted with derogatory remarks.   To counter act what has happened to your credit, you can follow some procedures that will stop the downward slide of your credit score.

You will be working with the credit reports of the three major credit agencies.  These reports contain all of your financial information.  Here’s how you can get started to stop further decreases in your credit score.

1. Get a free copy of your credit report from each of the big three credit agencies, once a year, to view your credit score information.  This is the easy step.  Don’t put this off.  Do it and you’re off to apply improve credit score tactics you find here. 

2. See what your credit score is when you get these reports.  This is the score that you will be working to improve or increase.  The next thing to do is look at each report for simple errors; then, make a list of them.

3. Simple errors are incorrect letters or numbers in your address, a letter missing from your middle name, or any other imperfection in your personal information.  Write down every error, then in a letter that you create and send to the agencies, document three errors and ask them to remove and correct them in your report.

4. Look for accounts that have been in your credit report for over seven years.  If you find any, write to the reporting agencies and point out that these accounts are over seven years old and that you want to have them removed.

5. If you have made late payments, they will show up on your report.  Call the lenders of these accounts and ask if they will remove them.  Tell them you are now trying to make your payments on time and want to work with them to fully repay your loan.  If they do not want to remove the derogator remarks, write to the agencies and ask them to remove these accounts, since they have errors.  The lenders have 30 days to respond to your challenge, and if they don’t, the agency has to remove these accounts. 

6. Each month try to get a bad item off your report.  If it does not come off, try again in a few months. Handwrite your letters and send separate letters for each item you wish to dispute. Include any documentation you have. 

7. If you need professional help, a credit repair lawyer can advise you on legal credit repair services and methods if you run into problems.

8. For credit cards or personal financial loans that you are having problems paying, talk with the lender.  See if you can have your loan restructured or ask for a couple of months with no payments.

9. As you work on your credit, keep your present financial activities clean and up to date.  Don’t make late payments or overdraw on your credit cards.

Protecting your credit score should be one of your main financial goals.  Your credit will determine what you can buy on credit and what interest rate you will be charged.  Also, do your borrowing and payments with the idea of “improve credit score.”

To start rebuilding your credit, apply for a prepaid credit card or a bank card that is backed by your saving account.  When you use this card, buy the goods you normally buy and then pay off the card within a week.  Keep the card balance low and this will help you build your credit back up. These are the nine basic tips that can get you started in rebuilding your credit report and score.