The first months in the year are always tough as far as getting paid go. You’ve likely overspent through the last month or so and you will want to take advantage of the January sales for new furniture for your home too. The issue with all of this is that at some point your credit rating might end up dropping below the level you need to be at. This is a pain to sort out and can be pretty worrying to start with, but there are some simple ways to fix your credit score and get back on track once more.
Why Bother With Credit Repair?
The purpose of having a record of your credit is to let businesses and individuals know that if they lend you any money, you will pay it back. Your credit score is based on a culmination of everything you borrow and everything you pay back. If you have instances on your report where you haven’t paid back a loan, this will lower your score and make it more difficult for you to borrow money when you need it. It is understandable that you will ask yourself, do credit repair companies work? But the fact is that if you do not tackle your credit woes head on, you are never going to be successful in borrowing money when you need it the most. Everyone will simply ignore your requests and reject you.
Before you can start to tackle your habits and repair your credit score, you need to be able to see EXACTLY what is on your credit report. It is by looking at your borrowing and paying habits that you will truly see where you need to improve. You have the right to access your credit report for free, so make sure that no one makes you pay to access it.
Review Your Credit Reports for Errors
Once you have got your credit report, you are going to need to go through every single line to make sure that there are no errors on their which could be negatively impacting your credit score. It might take you a long time to go through your report, and don’t worry if you get a little overwhelmed. The important thing is to see every piece of credit you’ve taken out and to make sure all of the information is correct.
Reading Your Credit Report
Generally every credit report will contain the following information: your personal information, a record of each credit account you have, any inquiries made to your credit report, and any public knowledge such as bankruptcy.
What Needs Repair
There are several different things which will need to be repaired:
- Any information which is incorrect for example your personal details, accounts which you don’t have, payments which have been reported late incorrectly etc…
- Past due accounts that have been sent to collections or are late
- accounts that are over the credit limit.
Make sure that you really take the time to go through your report and use different coloured lens to highlight everything you need to bring up or change.