Credit repair – 7 Steps to do it all by yourself

It requires no mention that a good credit score makes it easier for you to take out a loan at suitable terms and conditions. So, you may need to go for credit repair when your score is not satisfactory.

Credit repair – When you need it the most

If you are experiencing any of the following situations, then you should know that you need credit repair.

• You’re getting repeated harassing calls from creditors and collection agencies.

• Your credit score is not satisfactory and you want to increase it.

• You’re applying for a new credit but the creditors are not approving it.

Credit Repair – How to do it all by yourself

If you think that you need to take professional help for credit repair, then you are wrong. You can very well repair your credit and raise score all by yourself. Go though the following lines to know how you can do it.

1. Order and check your credit reports – While repairing your credit, at first, you should order your credit reports from each of the 3 bureaus, namely, Experian, Equifax and TransUnion. This is because not every creditors report to each of the 3 bureaus. After you get your copies, check them to find errors if any.
2. Dispute negative items if any – If you find any inaccurate negative entries, then you should dispute them by writing a letter to the specific credit bureau/bureaus. To do this, send a copy of your credit report highlighting the negative entry. You should also support it with sufficient evidence.
3. Plan a realistic budget and follow it – Reduce your monthly expenses as much as you can. One of the best ways to do this is to plan a realistic budget that you’ll be able to follow. List your fixed expenses and allot a certain amount against each of them. Try not to spend more than what you’ve alloted to each item.
4. Try to pay off your outstanding debts – It is one of the most essential steps in credit repair. Try to pay off your outstanding bills/debts as fast as possible. While doing so, try to repay your high interest debts first.
5. Check with creditors/credit bureaus – After paying off debts, check with creditors/credit bureaus whether or not the specific accounts are marked closed.
6. Close credit accounts slowly over time – Always close your credit accounts slowly over some months. While doing so, do not close your oldest credit account as otherwise, it may affect your credit utilization ratio thus affecting your score.
7. Apply for a new credit card – After you repay your existing debts, apply for a new credit card. You may also take out a secured card if necessary. Make sure you pay off the outstanding balance on this card every month as it’ll help you to establish a good credit history.

Make sure you don’t commit mistakes while repairing your credit. Always ask for return receipts whenever you send any mail to the credit bureaus and never ever dispute an item online. If you do so, you won’t be able to keep the records and produce it in future, if required.

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