Bad credit can either stall the process of getting a new loan or make it altogether impossible. It can be wiped clean, but first of all, you have to learn the main causes of bad credit: missed payments, bankruptcy, defaults, taking too many loans in a given period of time and failing to pay them back. Fortunately, repairing your credit is something you can do yourself. Here are five credit repair tips to consider:
- Request Your Credit File
If you didn’t order your file for the past year, you could get it in 10 days. If it’s urgent, you can get it in 24 hours, but you’ll have to pay a tax. This first step paves the way for the rest of our credit repair tips.
- Analyse It
The credit file is where you find all the information that pertains to your history as a borrower. When you inspect this file, you must look closely at repayment history (credit cards, loans, and mortgages), the enquiries, the defaults, payments, court judgments (if you had any) and all the information that is related to your account. You must check this file thoroughly and try to spot any inconsistency or things that have been listed more than once.
- Run the Diagnostics for Negative Listings
All the credit repair tips you are going to discover will advise you to do this. You must identify any payments you might’ve missed, overdue debts, summons in court and frequency of loans. All of these can damage your credit score, especially if we’re talking about overdue debts or defaults: they can stain your file for up to seven years. Court judgments, in their turn, will stay in your file for five years.
- Take the Necessary Steps towards Repairing
After you’ve identified all the damaging aspects, you can do the following things:
- Consolidate the debts: you can take a debt consolidation loan and sum all your debts in just one that is easier to repay.
- Remove erroneous listings: your provider must be able to remove any duplicates or mistakes from your file.
- Repay your debts: you can negotiate a brand-new repayment plan with your lender. This is especially important because you decrease the risk of debts becoming defaults in your file.
- Hire a financial counselor: most credit repair tips will usher you towards a specialist that can help you build a more effective money-management plan. He can also provide you with important pieces of advice in respect with your existing and future debts.
It is not uncommon at all for bad credit listings to be recorded by mistake or misunderstandings. That is why it is extremely important to evaluate your file before you do anything else. You cannot improve your score if you don’t know what caused its downfall in the first place. If you conduct an accurate investigation of your credit file, you will be able to repair your credit through the methods we offered above. It will take some time, so you have to be patient above all.
You can contact us here at Clean Credit, but if you want to clean your credit file yourself, we recommend using DIY Clean Credit