If your credit rating is poor, do not panic. There are a lot of things you can do to fix your credit. There are many companies that claim to “fix” your credit, but you can do the same thing for free. If you follow our tips you will be well on your way to repairing your credit.
If you have challenged or denied negative items on your credit report and some still remain, you may be able to reduce that number even further by contacting the collection agency or creditor. By law, these companies need to provide written proof that the account is yours. This means a hard copy of a signed contract or other legally binding document, not just a printout of the information they have in their computer system. Many of these companies do not hold onto these documents. If they can’t come up with acceptable proof, they are required to remove the account from your credit report and stop all collection attempts.
To have a better credit report, pay your bills as quickly as possible. Create a schedule of your monthly payments and stick to it. Your debt will not keep on growing and your report will not contain any late payments. Late payments are something banks and financing agencies look at when granting you a loan.
For a credit score boost, an installment account will help. You are required to meet a monthly minimum, so be sure that you can make the payments. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
If you file bankruptcy, ignore the calls you receive afterward from credit repair firms. A bankruptcy is a public record and many scams are run by companies preying on your weakness after having to file a bankruptcy. Avoid this issue by only working with companies that you make the initial contact with.
If you paid off an account, do not try to have it removed. Paid-off accounts do have a positive effect on your FICO score, especially as they age. Every item on your report that shows that you have at some point made payments is a positive item.
As you can see, by following our helpful tips you will be able to do exactly what credit repair companies do. Your credit rating does not have to stay in the poor range forever; you now have the knowledge to drag yourself out of the poor credit world and into the good credit world.