Resources for Credit Score Repair

A Guide to Credit Score Repair

Repairing your credit score may seem like a daunting task. However, individuals are encouraged to take steps as soon as possible in order to change their credit score. With enough time and patience, individuals can have a positive effect on their credit score. 

Obtaining a Credit Report

One of the first steps towards repairing a credit score is to obtain a credit report. In order to obtain a report, individuals should contact a credit reporting company. Usually, the first credit report will be issued with no charge, while subsequent reports within 12 months can be requested with a fee. It is important to obtain a credit report, as it will give the individual critical information on how to repair their score.

When obtaining a credit report, you may be overwhelmed with the wealth of information within the statement. However, there are several components within the report that can be easily identified. First of all, your credit report will contain your personal information, such as name, address, and date of birth. This information is the link between your identity and credit; therefore, individuals should make sure it is correct. A major component of the credit report is, naturally, the account summary. This section will give you information about the details of your various credit accounts, and the payment history, status, and balance. Another section of the credit report is the public records, which contain information on bankruptcies, court records, and other financial records.

Tips for Repairing Credit Score

Examining a credit report can give individuals insight on how to go about repairing their credit score. In general, individuals should engage in good financial practices, which will increase the score in the long run. The following are some basic financial tips towards credit score repair:

Dispute Errors:
Sometimes, your credit report may contain incorrect information or actives that you have not committed. It is important to remedy this error as soon as possible, as it can have a negative impact on the score. Contact the credit bureau or the account that is associated with the error and collect evidence that demonstrates that invalidity of the error.

Pay Bills on Time:
The most important factor of a credit score is whether the individual has paid his or her bills on time. One of the quickest ways to decrease a credit score is to consistently miss due dates on bills or to pay them late. Accumulated overdue bills may be passed off to a collection agency, which can be taken into account during credit score calculation. By paying bills on time, this indicates the individual’s financial responsibility.

Account Management:
If the individual has multiple credit accounts open, he or she may be tempted to close an account after a certain period. However, customers should make sure that there is no negative impact of closing an account.  If the individual closes an account that possesses a balance, this will dramatically decrease his or her credit score.