Want to learn how to fix your credit report and ways to improve credit score? Check out the complexity of your credit problems first. If you don’t have a complicated credit situation chances are you can fix your credit report score yourself in 6 months without having to take part in a credit repair program and paying the required fees.
Do you have a few credit cards and a car loan? If so, the DIY fix your credit approach will work for you and save you some money. The credit repair process will need some time and effort on your part, but it’s certainly doable.
How to Fix Your Credit Report
You may hear about how to fix your credit report when you have bad marks, what if the bad marks are not yours. For that reason, cleaning up credit reports from any errors should be the first step because any mistakes on your report can pull your credit down.
1. Get a copy of your credit report. Line by line, check out your credit report. Make sure that each debt is yours. And if you find any debts that are not yours highlight these items.
2. Check all items for accuracy. Does the amount owed, shown on your credit report match up with your records? If not, find out where the discrepancy lies and take a note on those items.
3. Take a look at old debts. Are there old debts recorded on your report? There are limitations about how long some items can stay on your credit report. This is different in each state, so find out about your particular state. Some are six, seven, and even ten years. After that time, they must be excluded from your report.
4. Contact each creditor falsely or inaccurately reporting a debt against you. Ask the creditor for proof that the stated debt is yours. They must give such proof within 30 days of receipt of your request and if they fail, the debt must be removed from your credit report. And for an inaccurate record, ask the creditor for a reconciliation of your account.
That is the tips on how to fix your credit for items falsely or inaccurately recorded on your credit report. Here are the bigger steps that you need to follow to significantly raise your credit score.
How to Fix Your Credit and Improve Credit Score
Your credit score predicts how you take care of your finances. One thing you do that can make major impacts on your FICO credit score is making payments on time — it affects more than one third of it and missing one bill one time can slash your credit by 100 points. So how to fix your credit score yourself? Make payments on time, every time! Here are the steps:
1. Create a budget. If you don’t have a budget it’s time to learn how to create a realistic one. You can start the process by reviewing your current expenses. Remember to only budget expenses for things that you really needs for daily living. Try to cut out unnecessary expenses that can be blowing a big hole in your wallet this year.
2. Negotiate with your creditors. Discuss new payment arrangements with your creditors. Also, negotiate a reversal of any late penalties with them. However, make sure that you do this when you have been back on track, with at least 3 months of timely payments under your belt. If the penalties result an increase in your APR ask them to reconsider it.
3. Start paying off your debt. Use the funds you free up from the budget adjustment for paying off debts. Start with the smallest amount and work them off one by one. If you can pay more than the required minimum on larger debts, do it! Also, promptly pay your debt installments when they’re due as these help keep your credit score up.
4. Pay off balances completely as early as you can. Keeping your balances low can affect your credit score in a positive way. If you find yourself missing on some payments, find ways to get current as quickly as possible. Looking for more tips on how to fix your credit score? Staying current with your outstanding credit is one of them.
5. Avoid applying for new credit. During the period of repairing your credit don’t go for any new credit! Every time you apply for credit and are turned down or don’t avail yourself of taking a loan you applied for, your credit score goes down. So just work on what you’ve already got on your plate, until you’re done.
6. Improve your cash flow. Having a hard time managing your outstanding credit? Consolidate it! A consolidation loan can help you make smaller monthly payment and improve your cash flow. A non-profit debt consolidation service is another option for helping making monthly payments to creditors. But no matter what option you choose your goal is make payments on time, every time!
Those are the steps on how to fix your credit report and improve credit score that you can follow. The DIY credit repair works because your creditor doesn’t want you to default and does want to continue doing business with you. This is especially true if you just faced a temporary setback — for example, you were laid off and now have been rehired.