Credit repair is simply anything you do which has a positive effect on your overall credit rating. You can always do things yourself to improve your credit rating or hire professional credit repair agencies to help you with the process. To truly understand what negative financial moves harm and help your overall credit rating, you will need to know how credit actually works. Here are five of the most important things you should know about credit repair.
The first thing you will need to do is to review your current credit report for any errors or discrepancies. You will need to ask a variety of questions about your current credit report in order to ensure that everything on it is accurate. Credit bureaus will not fix errors in your report unless you have requested them to do so. To fix any errors you will have to dispute them and you will be responsible for having the items deleted from your report. If there are no errors on your report, it may take you a while before you can raise the issue with the credit bureaus, but eventually this information will be corrected. The next thing you need to do is to cancel any credit cards you currently possess that do not currently have a balance due. This can often be done by simply calling the companies you currently have credit cards with and informing them that you are changing companies. They will give you a new credit card, one that does not have any outstanding balances, and you can then continue to make your payments on time to get the balance removed from your report. This will allow your overall score to be unaffected as you will not have a large amount of credit card debt on file, and it also allows you to effectively raise the score of the company you are switching to. The Credit Agents are famous for offering the best credit restoration services to their clients. The next thing you need to do is to contact a credit repair service. There are a variety of different agencies that claim to provide credit repairing services, but only a few are legitimate. These services are usually companies that will charge a fee to help you with improving your rating. Some will charge a monthly fee, some will charge a one-time fee, and others will charge a set monthly fee for their services. Be sure that the service you select is an agency that provides services for free as you may find that after using their service, you will be asked to pay a fee in order to maintain it. The third thing you need to do is to begin writing down all of the different accounts you currently have open that have a high interest rate, late payments, or that do not contribute to your overall credit score. This list should include any cards you may currently carry. and all other bills that do not contribute to the overall score, such as student loans, utility and phone accounts, medical bills, and credit card accounts. By listing them all down in this order, it will be easier for you to identify the account with the largest negative impact. Once you have a list of these accounts, you can then contact the credit repair service by writing to the credit bureau, explaining your list and requesting a credit copy of it. Once you receive this information, you can now start to work with the credit repair agency to remove any accounts from your report that are damaging your overall score. The credit repair agency will help you by explaining why they believe that your account is hurting your overall score the most. You will have to prove to the agency that the negative factors are false and that you need the account closed. Once the account has been removed, you will have to send the credit reporting agency a letter explaining why it is that you feel the accounts are negatively impacting your score. The agency will then give you a final verdict on whether the account needs to be closed or not. If you want to know more about this topic, then click here: https://en.wikipedia.org/wiki/Credit.
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