If you have recently experienced rejection with a credit application you may also be facing a poor credit score. There are several reasons for having a poor credit score such as delay in credit card payments, having some outstanding judgment against yourself, or being a victim of fraud or identity theft. For any reason, if you are looking to perform a credit repair, tread carefully. You will find several dishonest people out there looking for a quick buck from your pressing needs. Do not fall victim to a credit repair scam. Here are some legitimate steps you can follow to get back on the right track.
1. Find out the actual credit score: If you were denied a credit application recently, never take it at a face value. You need to find out what went wrong. There are three main credit reporting agencies viz., Experian, TransUnion, and Equifax. All of them are required to give you a copy of your credit score every year on request. You can also order it via phone or email. If a company has taken adverse action against you, you are still entitled to a free report. To qualify for this facility, you need to report within 60 days of receiving the notice from the suing company.
2. Review the credit report to dispute the errors: After you have received your credit report, you need to review it for any possible errors. In case you find any erroneous info or fraudulent purchases you have to dispute all of them in writing. Identify all the items you are disputing in the letter and the reasons behind your claim. Add all the copies of the documents supporting your stand. Ask the company to remove the errors and correct the credit report. It is a good idea to send this letter by certified mail. This will ensure that you have proof that the credit reporting company has received your letter.
3. Take action towards credit repair: After you have decided that your credit report is accurate, take a close look at your habits leading to a bad score. Are you repaying the credit card payments on time? Consider having an automatic bill payment system in place if you are paying late all the time. Rethink your spending habits if the debt is not going away. Try to use cash or debit cards for shopping. Consider the possibility of debt consolidation where the debt is transferred to a single lower interest account.
1. Never expect quick fixes: Even though you are anxious to get the credit repair done as quickly as possible, remember, there is no quick fix for the creditworthiness. It takes time to enhance your credit score, lots of hard work, and develop and stick to realistic repayment plans. When you have a poor credit score, you will get a lot of promotional material from credit repair companies promising to raise your credit score by 100 points within a month. If these claims sound too good to be true, you are right. You can find some legitimate companies out there who do this but they will charge a hefty fee for it.
2. Do not hope for changes instantly: Never get nervous if you have taken some initial steps towards credit repair and still haven’t seen a rise in the credit score. Keep in mind that creditors report to the reporting agencies periodically. This period usually is one month. It might take in the excess of 30 days after this or even more in some cases, for your credit account to be updated and for the credit score to show improvement.
If you live in Pinellas County, FL area, get in touch with professionals at Super Credit Repair. They can help you manage your finances better. If you are in some kind of financial trouble, they can help you. Get in touch with them and use their credit counseling service. There are some online services available as well that aid in creating a budget and keeping track of spending habits. If the alternatives mentioned above do not sound feasible, you can try to raise your income. Use the additional cash to pay off the debts.
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