Credit repair is the process of removing bad transaction histories from your credit account to establish a new profile for banks and loan providers. A clean, spot-free credit report offers more valuable usage not only for your present needs but also for future financial requirements. Although it is highly-recommended to contract the services of a credit repair company, it would be wise, especially for those with tight budgets, to do the repair yourself. Read on to know how you can repair your bad credit, your personal way.
Step #1: Retrieve your records. This is the most important and initial stage of your credit repair. Obtain all your financial records from your current and previous banks and loan providers. It does not matter whether you have existing or settled debts with them; the most important thing is that you retrieve all your transaction history detailed with their remarks from your last payment. To lessen the hassle, you can formally ask for an annual report of your transactions emailed to you or sent via postage from a reputable credit report bureau.
Step #2: Analyze your reports. Take a closer look at your reports and review if all the information declared is accurate. You can start by counter-checking your personal information such as your name (legal name and known aliases), current and previous addresses, current and previous employers, contact information, and others are true and accurate. Check if the amounts recorded on your payment histories are exact as well as the date. Every single piece of information that is false or misleading should be corrected because it may have an adverse effect on your credit standing in the future. It may also serve as valid grounds for disqualification in case you file for another loan.
Step #3: File a dispute against incorrect information. As mentioned earlier, it is very important that you take note of every bit of information that is misleading, inaccurate, or completely incorrect. Make sure that you do not miss anything and that you go back and forth to counter-check the whole report. And for every incorrect data, file a separate dispute. Your dispute should specify which information is incorrect and why. The financial institution that claims the responsibility for your loan shall validate and verify your case and must therefore, remove it from your record once proven that it is indeed erroneous.
Step #4: Establish a good, reputable credit standing. Now that you have removed all the misleading information from your current and past credit transaction histories, it is your responsibility to maintain a good credit standing. This means that you have to settle your debts in a timely manner and in its correct amount to avoid instances of stains in your credit history. Note that it is very expensive to pay-off your debts, and it is all the more expensive if you regularly hire a credit repair professional to fix errors on your accounts.
With credit repair, you can increase your credit score to as high as 50% and receive greater opportunities to be eligible for future loans.