When Do You Need Credit Repair?

When do you need credit repair? If your credit score is below 700 points or you are finding that every application you applied for was denied, it may be time to start working on your credit.

You may feel rejected and embarrassed but don't be because your credit issues can be resolved. Before we get started let's discuss one rule of thumb.. Bankruptcy. Do not file for bankruptcy if you have not first assessed your credit report. It is true that you can file for bankruptcy and remove some items, if not all from your report to start over, but the problem is the timing. It will remain on your record for 7-10 years depending on the chapter you filed.

What you should do first is get a copy of your credit report from all three agencies

Equifax, Experian, and TransUnion. You may request a copy simultaneously or get one at different times of the year. If you already received your free report you can get all three reports with your current score for $1.

Once you have it, check to see if there are any errors on the document. There are instances that one report will say something different, so be sure to check each report for inaccuracies.

If you know for a fact that a certain issue has already been resolved, send a request to have this changed. The best way to dispute any inaccuracies is to write a letter. Do not call. Yes, there are many people who claim to be experts and they suggest you call for a quicker response, however this method is not recommended. Find out why you should never call the agency to remove any items on your report.

But what if the credit report is accurate? Well, the best thing you can do in this case would be to negotiate with the creditor. It is important to know how much you are able to afford to pay. If you are not sure what you are able to afford, get a paper and pen and jot down your expenses and your monthly income. Now you can see what you have coming in and what is going out. If you have money left over, break that down to what you are comfortable with paying. Still need help, download a free calculator and customizable budgeting spreadsheet when you sign up for this Budget to Bucks E-course. It you are having a hard time due to the big amount, get help from a credit counselor who can act as a negotiator and help create a debt consolidation package.

The debt consolidation package must be placed in writing as it signifies an agreement between you and the creditors. . This document will save your life should there be any problems in the future like if the creditors decide to void the agreement.

Once the debt consolidation package has been made, it is time for you to come up with the money and that usually means cutting down your expenses for the moment.

If what you are saving is not enough, you may need to make some hard choices like selling off certain valuables, borrow from a family or friend, or get a side hustle. We discuss the top 25 hustles that you can do right now without any money to get started.

When you have finished paying off your debt that could take months or even years, make sure you get a settlement letter from them and send a copy of this to the credit bureaus so this can be updated on your credit report.

There are lessons to be learned once you have successfully undergone credit repair.

First, keep an eye on your expenses. If the credit given to you is quite big, don’t be tempted to max it because you will mostly have a hard time paying for it.

Second, while most creditors will allow you to pay a minimum, whatever is left grows because of interests so you are not doing yourself any favors by not paying this amount in full.

Third, if this is something you can’t do alone, don’t be ashamed to ask for help because there are counselors ready to help you out.

Fourth, pay all your bills on time and in full.

Credit repair could have been avoided if you played it smart. Now that you are here, you have to do what is needed so it can be corrected. Let us help you get back on track. Contact Us Today for a free consultation.