There is good credit and bad credit in the world that we live in. One lesson that is important to learn is to know how to minimize bad credit and responsibly use good credit to our advantage. Having good credit can mean the difference between getting a loan or not.
What if you didn’t learn the lesson on minimizing your bad credit? Do you need to work with a credit repair company? Or is it possible to repair your own credit? I can tell you that it is possible to repair your own credit and save money while doing so. During this process people (especially couples) become overwhelmed. My goal is to give you 7 strategies that you can use now to begin repairing your credit.
- Request Your Credit Report. Each year you are permitted to get a free copy of your credit report. This report will show you all of your information, but it will not give you your credit score. You can also request a free copy of your credit report if you are ever denied credit or if you are denied employment due to bad credit.
- Analyze Your Report. Review your report to look at all the information that is provided. Take a look at your personal information that is listed there. This should show places that you have lived, employment, open credit and negative results.
- Make a List of Your Negative Items. Once you have reviewed your report, get a piece of paper and make a list of all of the negative reported items on your report. Things that you should list out are the company that has reported the negative item, the company’s address, the account number, and the amount owed.
- Write Letters. Now that you have a list of your negative items, you need to write letters in regards to each negative item. If you have more than one item with the same company, do NOT combine the information in one letter. Write a separate letter for each dispute. When you write the letter, state the reason why you are disputing the item.
- Document Your Efforts. When you have sent the letters, make sure you keep records of every item that you have disputed. Keep copies of each letter, as well as the proof that the letter was sent and received. I keep everything organized in a software program that manages my files electronically. The software makes it really easy for me to keep everything organized by the company I am making my dispute with, as well as the credit bureaus.
- Analyze The Results. After a period of time, you will receive responses from your disputes. Credit Bureaus have between 30 and 45 days to respond to your dispute. Companies that have reported a negative item have 30 days to respond. If the results come back and show that they are removing the disputed item, congratulations, you have been successful. Make sure to file that documentation with your documented efforts so you can refer back to it if necessary. If the response was negative see the next step.
- Repeat Disputes with Credit Bureaus. Now if the response you received shows that the dispute was valid, you will use the same process of steps 4-6 and use a different reason of why you are disputing the negative item.
Set aside a little time each day to tackle these 7 steps, and you will find you will get yourself on track to repairing your credit as well as start the process of eliminating unneeded financial stress.
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