How You Can Quickly Repair Your Bad Credit

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How you can quickly repair your bad credit
2 years ago
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The following steps will help you repair your credit. Credit bureaus are required to investigate a credit reporting dispute. Criteria for receiving a free credit report and instructions on how to file a dispute are on their websites. If they cannot verify information on your report they must remove it. After their investigation they will provide you with correspondence stating their findings and any changes they have made to your credit history.

Step 1 - Request your credit report online from the three major credit bureaus, TransUnion, Experian, and Equifax.

Step 2 - Thoroughly analyze your credit report for inaccuracies and/or discrepancies. If you dispute anything as inaccurate or incomplete make three copies of your credit report to include with a dispute letter to each credit bureau.

Step 3 ??When you send your dispute letter to each credit bureau request them to remove all inaccuracies and incomplete information and to correct the account information. You can get their addresses from their websites along with extensive information on credit. In your letter provide the account information you are disputing, i.e. creditor name, account number, etc. Also provide proof of your dispute, i.e. a copy of a letter from a collection agency stating a debt has been satisfied.

Step 4 - Leave any credit card accounts open. Generally, closing them lowers your FICO score.

Lastly, according to most credit score scales, scores beneath 620 are considered to be poor scores. You would want to definitely follow these steps to repair your credit if your score is below 620. Following them to correct your credit will greatly increase your chances of getting credit and lower interest rates in the future. Below are some general guidelines that will help you determine where you are on the credit score scale.

750 - 840 Excellent
660 - 749 Good
620 - 659 Fair
340 - 619 Poor

The lower your credit score, the higher your interest rate will be if you are able to obtain financing on any purchase. Therefore, repairing your credit will definitely save you a lot of money on future purchases. As you take the time to write your letters and are persistent with following-up on your credit history and credit rating, your rating (FICO/beacon) score should increase based on these positive corrections. Be sure to stay away from any occurrences that may negatively impact your credit rating such as closing credit card accounts and slow payments. You should check your credit report once every 6 months to make sure all information on it is correct. As you accomplish these steps you will be well on your way to repaired credit. You can do it!
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