Bad credit can ruin not only your reputation but also your life. Without a good credit score you cannot get access to the best loan products and the best interest rates. Most banks and lenders will shy away from you and you will be left to deal with loan sharks that will put you into more debt. The solution is to rein in your expenses and perform credit repair so you can manage debt more efficiently and will result in a better credit score. Here is the 2019 guide to credit repair.
Get the Collection Calls To Stop
The biggest challenge most people have when it comes to tackling credit repair is just getting the strength to begin the process. When debt collectors are constantly harassing you it can be quite difficult if not impossible to move and begin. What you are going to do is to write formal letters to collection agencies to make an official request that all communications with you should be done via mail only. This will give you the necessary breathing room as well as establishing a paper trail that you can take advantage of when beginning credit repair. You also get the chance and the energy for that matter to deal with your finances on your own terms without having to have a panic attack each time your cellphone rings. Begin by getting control of your credit collection so you can get on the correct path to having better credit.
Review Current Financial Situation
Knowing where you stand is a good gauge and an amazing way to getting your credit repair campaign started. Get a free credit report from each of the three major credit organizations: Experian, TransUnion and Equifax. If you have been denied credit or employment because of you credit file, you also can get a free credit history report even if you already got one previously in the same year.
Check for Correctness
Once you have the report, read and understand its contents. Check to see if all the listed information is correct. Keep in mind that a lot of aspects go into computing your current FICO score. Sometimes there is outdated or erroneous information on the report that could cause your score to go down more. Alternatively, you might discover missing good information that can help increase your score for the better such as a lower loan balance. By updating or adding the right information on the report, your score can get better.
Checklist for Report Accuracy
Incorrect Amounts Owed – This refers to amount owed that is listed erroneously resulting in a report that does not accurately reflect amount of credit used. High use of credit will have an adverse effect on your score.
Wrong Account – If you have no memory of a debt there is a chance that it might not have been yours in the first place. All unknown debt should be scrutinized.
Erroneous Delinquencies – Refers to items listed as being paid late even though you paid them on time. Any late payment will have a negative effect on your credit score.
Inaccurate Reporting of Collection Accounts – Some collection companies are unscrupulous enough for placing information on a credit report for the purpose of extorting money from unwary people. Be careful of this.
Duplicate Collection Accounts – A debt or account should only be listed once. If the report shows it was listed several times by the same group or by competing groups, all but a single listing should be removed.
Wrong Judgment Information – If a judgment has been erroneously listed, it should be investigated. Judgments can hurt your credit score or dampen your chances of securing a loan. Any wrong information regarding the judgment may be disputed, even if most of the info is accurate.
Look for Zombie Debt
When running through your credit report, do pay special notice to the dates and check that any current negative items are still eligible to be listed on your account. Re-aged accounts can be listed with more recent dates that are not correct. Truth be told, this is a common practice of debt collectors in order to force you to pay for a debt that is past the reporting limit. In some situations, the statute of limitations have already come and gone on these debt collections in your area of residence. In instances like these, the best solution would be to dispute the debt as paying it would have little or no impact on your score. Moreover, the credit bureaus are only interested in information that is verifiable and accurate.
Hire A Professional Credit Repair Company
If you think doing credit repair all by yourself is something you do not have the time or knowledge to pursue. Talk to a credit repair company so you can take a load off your chest and let the professionals do the heavy lifting for you.
Repairing credit does not happen overnight. However, with the right guidance and discipline on your part you can make it work and achieve a score you can be proud of.