Living with bad credit can be tough but possible. Everything becomes more expensive if you have bad credit, for example you get higher interest for a loan debt and you also pay more for your insurance because you are generally considered to be a more risky client. Lenders also want to know your credit history before they can approve your loan or credit, thus it is important to have a good credit rating. If your credit rating is negative, you need to do a few things in order to repair it.
Why credit repair?
It will help you to save money on your credit cards, loans and insurance premiums. Besides, having a good credit rating will open new employment opportunities for you. It makes you a more secure client as far as borrowing is concerned and even if you need to open a new business it will become much more easier. Do it yourself Sometimes you do not need a professional to help you repair your credit standing. The money that you were going to pay a professional can be saved. Firstly, you need to obtain your credit reports from the three credit companies. These are available for free on Annualcreditreport.com. The reports will give you the reasons why you are in such a situation. Go through the reports and establish what exactly needs to be repaired.
What needs to be repaired
The credit report contains your personal identity information, bankruptcy and a detailed history of all your accounts. Some of the things that you may need to check would be any incorrect information contained in the report; this can be anything ranging from an account that is not yours to information that was entered incorrectly. Some things that may need to be repaired are accounts that were not paid and referred to as collections. Dispute the errors in your credit report You have the right to dispute; you can do this online or even over the phone. Doing it via the internet is quicker and easier. Disputing through mail is however the best because you can send all your supporting documents. Do not forget to keep a record of all your documentation. The credit bureau will have up to 45 days to respond. You can also send your query to the bank or lender who listed the wrong information, once they verify, they can remove the wrong information. Payment history This affects your credit history the most and takes 35% of your overall score. Pay your accounts that are overdue. This is the only way you can repair your bad credit. If you feel you can't do this on your own, you can get bad debt help.