Credit Score Repair

How to Repair Credit Score

how to repair credit score

If you thought you are the only one having credit repair issues than you are wrong. Given the state of economy, loosing jobs, people behind their mortgage payments and other financial issues. Millions of American consumers are facing tight credit crunch and are affected with credit problems. The last decade has been tough on American consumers, first with stock melt down followed by mortgage crisis and sliding economy has made more difficult for people to keep their finances in order. this had more important for consumers to know how to repaur credit score.

With the result people are behind on one or other financial things and their credit score in recent times has taken hit. Many people have foreclosed their homes have filed bankruptcy or simply not able to afford payments to lenders. All this has affected their borrowing credit ability. With poor credit score against their names banks and credit card companies are denying their request for loan, or refinance option for higher interest mortgage.

How do you go about fixing damaged credit score? Credit repair is option by which you can start repairing credit score and with time you will see gain in your credit score. People with bankruptcy and foreclosure will have to wait for few years till they will see big changes in credit score. Still all is not lost. With proper planning and keeping tab on your financial matters and following tested steps one can build damaged credit to a respectable credit score.

People should remember there is no magic formula to improve damaged credit profile. This is a step by step process which requires time, paying bills on time, closing few accounts and working with your creditors. Do not go by the letters in emails or phone calls that your credit will be fixed in few weeks etc. All these calls or advertisement in mail are costly and they will also do same things as outlines above. Some of them are fraudulent and you might loose money in this process.

First step is to get your credit report and see what exactly is wrong with your account. These days you can get free credit report from each credit bureaus once a year. This is government mandated rule to allow American consumers to have access to their credit report. Every credit agency is supposed to provide free credit report once a year on consumer's request. For this reason the three credit bureaus have created join company "Annual Credit Report Request Service" which provides free copy of credit report to consumers once a year.

Annual Credit Report Request Service

Address: P.O. Box 105281
Atlanta, GA 30348-5281
Phone - 1-877-322-8228

Second step is to work with your original lenders and see if they allow you to give you more time to pay bills. these days mortgage companies are giving temporary solution by lowering interest rate on loan so that consumers can afford to pay monthly mortgage payments till economy or their financial prospect improves. Working with credit card companies can lower your payment on balance or they might forgo some part of unpaid balance. Either way it is good option to work with original lenders. This way you can stop lender going to credit bureaus and if you have worked with them for mutual agreement you can even ask for removing bad remarks on your credit file registered with credit bureaus. If this happens it can bring your credit score up.

Third Step is to put your plastic in freezer. Yes, your credit cards need to be put in safer places. If they are not in your pocket than you won't be using them. With no addition to your existing balance you have chance to wipe out debt with monthly plans. Sure, this may take months to pay balance but same time total balance owed is also coming down. The more ratio between total credit balance and credit available comes in your favor this will lead to jump in credit score.

Fourth Step is to watch for minimum payments and due date for each of your owed bills be it mortgage, credit card, utility or other financial bills. Paying on time improves your credit history and paying more than minimum amount ensures you are actually lowering your debit amount. This again on slow pace improves your credit profile.

Fifth Step scan your credit report and look for any wrong information or wrong collection remark. If information doesn't belong to you write to each of credit bureaus and if possible attach proof for correction. This process is time consuming. Credit bureaus will take time in confirming your details but with follow-up and proper documentation you will be able to remove wrong remarks from your credit file.

Sixth Step: Get in touch with non profit consumer protection organization or your state attorney general's office for help. They can provide free service on counseling how to repair your credit score. Bottom line you should not be paying huge money to save your credit score. Work with lenders, non-profit organizations in getting information on credit repair

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