A healthy credit score is one of the only ways a person can be assured they will get the best interest rates on a car loan, home loan and even credit cards. Poor credit is no longer being accepted by lenders. Those who don’t have a healthy credit score are losing out on opportunities to use credit to buy things they want or need. A poor credit score can end up costing a person thousands of dollars a year due to paying higher interest rates. If a person wants to know how to repair credit, the following ways are proven to work.
· A do-it-yourself approach is very effective. Disputing inaccurate information with the credit bureaus is absolutely crucial to rebuilding a credit score. The people who report information to the credit bureaus are human and do make mistakes from time to time. One number off on a social security number can result in wrong information being posted to a person’s credit report.
· Hiring a credit repair company is another option. The credit repair company will work to remove unwarranted derogatory marks on a credit report. The company will also work with creditors to reduce interest charges and other fees to help reduce the debt and make it possible to get out of debt.
· Settling your debts with collection agencies and in return they will delete the negative item is another option. If you want to know how to repair credit, the first step is to get derogatory marks removed as soon as possible. If somebody is preparing to purchase a home, buy a car or even take out a loan for college, it is imperative a credit score is as high as possible.
· Disputing directly with the creditor is always an option. This cuts out the middle man and is often the quickest way to resolve an issue. Creditors will typically want to work with a debtor in order to get a debt paid and off their books. By establishing a payment plan with a plan to have the debt paid off by a specific date, creditors will get their money and a debtor’s credit will remain intact. The regular payments will also help boost the credit score.
These four tips can help anybody suffering from damaged credit. It is not a process that will magically fix damaged credit overnight. It can take anywhere from one to six months before there is any improvement in a score. It is up to the person suffering from a poor credit score to be diligent and work hard to pay down debt without missing any payments. It is also important no new credit cards or loans are applied for. Credit inquiries can reflect badly on a credit report.
A healthy credit score is possible no matter the damage done in the past. If you are truly interested in learning how to repair bad credit, these tips will help you achieve that goal and reap the benefits of a good credit score.