Repair My Bad Credit

Create a Plan

If you are one of those people who are saying to your self, “how do I repair my bad credit” then you really need to put together an action plan that will not only help you to restore your financial history but also to help your rating increase.

This can save you time and money.

You have to be well informed first. So having a current copy of your report and your score is a great place to start. Now there are a lot of free programs out there but just be aware that there is usually a catch. So just be sure to read the fine print. You can use a credit company I do if you would like.

So you look at where you are and create a step by step process.

The first thing you want to look for is what item or items are the most detrimental to you financial standing. Remember your credit score is based on a number of items

Once you look at your report the more problematic accounts will be easy to spot.

Repair My Bad Credit: Some of the things to look for on your record:

  1. Too much debt

  2. Delinquent or unpaid accounts

  3. Collections

  4. Accounts that don’t belong to you

  5. Other Negative remarks

Repair My Bad Credit Steps: How do these things affect your credit score?

  1. Too much debt - not only is part of your score ranked on this but a potential lender may think that you might have a difficult time making your monthly payments.

  2. Delinquent or unpaid accounts - These can haunt you. Start making payments on them or call the creditor and work with them to put you on a payment plan. These don’t disappear. If you are making payments on them don’t close your account close your account as your regular payments will actually boost your score. If you close your account, the debt hurts and there is not a benefit to your record.

  3. Collections are tricky. If a collection is old, it is best to leave it along from a credit score perspective but if you are applying for a mortgage, they may want you to pay it off. Once you pay it, it becomes “new” again thus negatively affecting your credit score. If the collection is new to begin with, then just go ahead and take care of it, again , this will only come back to haunt you.

  4. Accounts that don’t belong to you. You might wonder how that could happen. Honestly, it happens all the time. There is so much incorrect information that shows up on credit reports it is sad. Why, I just received a copy of my credit report. The phone number listed is correct and that was changed just a year ago however, it had my brother’s address and I have never lived there. Doesn’t make sense now does it.

  5. Negative activity such as a bankruptcy can affect you. Bankruptcies stay on your credit report for 10 years and different creditors will view them differently. So at year 9 the bankruptcy, I applied for a credit card ... now mind you I have never had a late payment since the bankruptcy 9 years earlier, had other credit accounts in good standing yet this particular creditor would not extend credit.

So to "repair my bad credit" you now know what you have to do. Look at these items and prioritize according to what is hurting your rating the most.

Some of these are easy fixes, you set up a payment plan or maybe you need to write a dispute letter to get something corrected. There are other items that may best be helped by a credit repair professional.

I know you might be hesitant to use outside resources but if you REALLY want to do it right and get it done quickly, then it best to get outside help, Just make sure you get a reputable company. So your job is to put a plan together to take the steps to “repair my bad credit”. Get rid of any shame or guilt and move forward to a healthier financial future.

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