Repairing a Bad Credit Score
By Sadiya Anjum
You basically cannot run, hide or escape from your credit score. Inevitably, when you seek a job, look for rental homes, apply for loans etc. your credit worthiness is going to be taken into account. A bad credit score needs to be fixed if you hope to not pay excessively high interest on loans or get turned away by landlords. Fixing your credit score is extremely essential.
Firstly, make sure that your credit report is accurate and the score is truly representative of your credit history. Obtain a copy of your report from any of the credit bureaus and examine them for any mistakes, omissions, misinterpretation or misreporting. For instance, if you cleared a loan some time ago and were diligent with its payments, including this information may help your credit score by throwing a better light on your payment actions. So ensure that your credit report is as accurate as possible.
If you detect any errors, you have a legal right to contest them. Seek help from a professional if you must; by sending a written letter to a credit bureau you can help solve the problem. The bureaus are obligated to investigate the errors, verify and clear them. This way of credit repair is valid only if there are actual errors or omissions in your report. Contesting accurate information is not going to be of any help. A word of warning regarding credit repair companies; they can help you contest inaccurate information but there is no legal way that anyone can change or delete accurate information from your credit report.
Fixing a bad credit score is a bit like weight loss. There are no short cuts irrespective of what anyone tells you. Its simple logic: you cannot obtain miracles overnight and it definitely takes some effort to bring up your credit score. Paying bills on time, a steady income and smart spending options will all reflect on your credit score.
Firstly begin by assessing your financial situation. Dig up bills you have forgotten to pay, mark out late payments and accounts on which minimum payment is required to be made immediately. If you are finding it difficult to manage even minimum payments, then contact your creditors about the problem. They can help you with alternatives allowing you to make your payments over a period of time.
If the problem seems too severe, get in touch with a credit counseling agency. They cannot fix your credit score but they can guide you in the process. They will help assess your situation, draw up smart plans for payment and suggest alternatives like debt consolidation (if possible). Keep in mind that they are not fixing your problems but only guiding you.
It is up to you to make the changes required to fix your credit score. It takes diligence, patience and a lifestyle change. See how you can pay down debts and which ones require immediate attention. Check to see how plausible and effective a debt consolidation loan will be in your situation. Most importantly, you need to keep track of your spending habits and direct your money towards clearing debts. A positive change in your management of finances will cause a similar change in your credit score over a period of time.
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