Whether it is fair or not, your credit score is a number that defines you in the eyes of many businesses. If your credit score is unacceptably low, many companies will shy away from doing business with you. However, you do not always have to accept your credit score as a given. There are some steps that you can take to help repair damaged credit. The keys are being informed and proactive. If you are able to take some sort of action, your credit will likely improve.
The absolute first thing that you need to do when trying to fix your credit is to find out exactly how bad your situation is. You cannot know this without actually reviewing your credit history to find out where you may have gone wrong. You can order free credit reports annually from each of the three major credit reporting bureaus. Take advantage of this opportunity and obtain credit histories so you can see yourself through the eyes of prospective lenders. Familiarize yourself with every entry on your credit report so you are well-informed.
To the extent that there is a mistake on your credit history, do not hesitate to challenge it. There are laws that allow people the right to appeal derogatory credit information. The credit report will come with instructions on how to dispute any entry with which you disagree. You have a variety of different methods to use when disputing an entry on your credit report. You can file a dispute either online or by mail. In addition, laws will dictate the procedures that credit bureaus must follow when deciding the merits of your challenge. If all else fails, the Fair Credit Reporting Act provides various protections for consumers whose credit has been erroneously reported upon.
Assuming that the negative entries on your credit report are accurate, it is not the end of the story for you. There are various measures that you can take to improve your score. Some of these measures can pay off over the short term. The first step that you can take involves paying off debt as you are able. The amount of debt that you carry affects your credit. To the extent that you can cut back on some expenses and make a small dent in some of your balances, it will help repair your credit on multiple levels. Besides resulting in a lower debt level, establishing some evidence that you are able to repay your debts also reflects favorably on your credit.
Also, taking on less debt can help in this regard. While you are making payments on your debt, you are decreasing your balance by paying off more than you spend. This will involve cutting back on some of your monthly expenses as you are able. While you can certainly continue to use your credit cards, using them a little less can help fix your credit.
In the meantime, you should be making regular payments on the amounts that you owe. Even if you cannot pay the amount that you want to every month, you can at least demonstrate that you are keeping up with your bills in some way. Establishing a regular payment history is one of the most helpful ways to repair credit.
Some borrowers will need some help in getting a handle on their debt situation. Whether that involves negotiation with creditors or taking on a debt consolidation loan, Dutchess Partners is an industry leader in the field of helping borrowers gain control of their debt. Some creditors are open to negotiating your debt because it costs them money to send your account to collections. They may be willing to settle for a fraction of what you owe because your bankruptcy would wipe out your debt to them.
Alternatively, a debt consolidation loan can improve your credit by lowering the number of creditors to whom you owe money. It can also help reduce the interest rates that you are paying on your debt. This will make repayment a more manageable thing for you. Instead of having to repay multiple creditors at high interest rates, you are dealing with one loan with potentially a lower interest rate. Dutchess Partners can help you learn about this type of loan and how it can help you fix your credit situation.
