Methods For Fixing Derogatory Credit

By Anna D Hill

There are extraordinarily few people who can just go out and pay cash for the major purchases in life such as a house or a car. Many folks need to get financed for these considerable purchases and in order to do that they need to have high credit scores and good credit. However, troubling times can happen to anyone and even the utmost credit scores can dip when unforeseen situations happen.

If you have struggled with a troubling time and now you have bad credit there are steps that you can take that can improve and even fix your credit. Even if you have bad credit now it doesn't have to last and no one is meant to have bad credit forever. Even if you do nothing, provided you begin now to pay your bills on time, your credit scores will get better over time.

On the other hand, you may want to speed up the process. The very first thing to do is make sure that you get a current copy of all three of the credit reports from each of the three main credit reporting bureaus. Make sure you get all three credit reports because they are all different and they all use different algorithms to establish your credit score. Also a creditor may select just one credit report to look at or they may look at all three and you never know which is the most imperative so you have to repair all of them.

If you happen to come across any type of mistaken information on your credit reports, make sure and take note of it. You will probably need to provide a dispute to the credit bureaus about the erroneous credit. Anything that does not belong to you, balances, interest rates or credit terms that are distorted, even late payments that are misreported can all be disputed.

After you have sent your dispute and you have acknowledgement from the credit bureaus that they have received it, they will have 30 days in which to substantiate that their coverage is accurate and correct with another 5 days to reply back to you. If you do not get a positive response from the first letter, you should always try again until you succeed.

Along with giving disputes to tidy up your report you should also make sure that the credit you have now is exceptional, meaning that every payment is made on time. Also a very vital factor to your credit score is actually the debt to credit ratio, which is the quantity of debt that you have compared to the amount of credit that you are allowed. Strive for high credit limits and low debt, if at all possible under 20% of the limit.

You can also make contact with the original lenders and see what you can agree to have them delete the wrong information. Sometimes you can negotiate a lower settlement but make sure that they will really delete the listing from your credit report.

Credit repair can be completed. It may take some time and knowledge to really realize some good outcomes, however, the peace of mind of knowing that your credit is good when you need it is priceless. - 31382

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