Having good credit is essential for our life. A good credit rating allows us to have a credit card or be able to rent a property. On the other hand, with a low credit score we may not be able to get credit at all, or if we can the terms aren’t favorable to us. This is the reason we will want to do all things to repair our credit.
There are two ways to fix your credit: slow credit restoration and fast credit repair. Natural credit restoration process is good for you if you’re looking for a more permanent improvement on your credit. The steps involve adding accounts to your credit report and hiring a credit counselor. It is a slow process but these steps allow you to change your spending habits.
Another way to improve your credit is credit repair. The process is fast because you want to see rating improvements in months and not years. The goal is you can get approved for a loan as soon as possible.
Slow, Natural Credit Restoration Steps
Credit restoration is a slow, long-term process that requires you to build a better credit rating over time. But it works and is worth doing. Here are some steps for you to restore your credit:
1. Add accounts to your credit report. If you are turned down for credit, immediately get your credit report from the credit bureau in question. Once you have the report you should check it closely for errors.
In the event that there are no errors, chances are your poor credit rating happens because you don’t have enough of a credit history to inspire a good rating. If this happens, you may add things like gas-cards or department store cards in your credit report.
Many types of credit from smaller organizations, such as the mentioned above are not tracked by credit bureaus. But as long as the account is verifiable, most credit bureaus will add it to your file, for a fee. By adding these accounts to your credit report you will establish a better credit rating.
2. Credit Counseling. Once you become mired in debt, the process can feed on itself, and it can be difficult to get out of it. If you find yourself having continual problems when fixing your credit, consider working with a credit counselor.
It’s important to notice, however, the distinction between a credit counselor and a credit repair company. The former is usually a non-profit service that offers advice on credit repair, and the latter is a for-profit company that charge fees for repairing your credit. A good credit counselor will help you make a realistic budget, and help you make decisions with regards to your debts.
By adding whatever accounts you have in good standing to your credit report, and seeking help from a credit counselor if necessary, you will make headway into your goal in fixing your credit.
Quick Fix from Credit Repair Professionals
The difficult thing about credit is that it takes a long time to build a good credit rating, but a very short time to destroy it. When your credit has been damaged you have to understand that there is no quick solution: you will have to build your credit rating again — from scratch.
If you want to get a loan in the near future you will need the help of a credit repair pro. They are knowledgeable in analyzing your credit report errors and ways to challenge reporting agencies, including steps to speed up re-dispute for non-corrected items. Once you achieve good ratings they will counsel on how to keep those credit scores good and how to meet your lender requirements.
Now that you know the pros and cons of the credit improvement methods, just pick one: slow credit restoration or fast credit repair. If you don’t need a quick and easy credit repair, just think of long-term changes to your budgeting and spending habits. This way you’ll restore your credit without you even realize it.