In the United States, as well as many other countries, there are laws in place allowing people to mount disputes regarding their credit reports if discrepancies are found. This can salvage your credit score, which is largely based on the results of one's credit report. Repairing your credit score can be a simple thing, provided you have proof to back up your claims. Having good credit is all-important these days.
So if you do find a problem on your report, you have to take action right away. Give the credit bureau all the relevant documentation you can get a hold of, this will make the process of repairing your credit much easier. Don't just call the credit bureau and scream at them, this isn't going to help you or anyone else. Follow the hints below for a better way to go about repairing your credit score. Do not apply for additional credit while your credit score is still at the "iffy" stage - each time you apply for credit, this gets registered in your record and gives the impression that you are a person who over-extends or uses too much credit Pay all your bills on time - it's very tempting to skip payments because people know they won't get thrown into jail for one or two skipped payments. But think of it this way: a skipped payment will lead you into a situation where you'll feel trapped and be cash-strapped.
That's almost the equivalent of remaining in a locked cell. Keep your credit card payments at a level higher than the minimum payment. Don't overextend your credit limits, your score will thank you later. Debt consolidation may be a good idea. If you are paying on many debts, the varying interest rates on these debts may be costing you more than you think.
Seek some advice from a financial planner on this, it is definitely convenient and may save you money. Use cash, if that is an option. Try only carrying cash - you can't spend money you don't have this way. Attempt to form a rapport with your bank, credit union and mortgage provider. If you have a measure of trust between each other, small problems with your credit may be overlooked; this can be a big help to your in repairing your credit score.
Credit is sacred. It's also one of the most fragile things we have. If you have a bad credit score, don't wait to get it repaired. If you've made regular payments and never skipped due dates, keep all of your receipts and send copies off to your credit bureau. Insist on a correction.
You owe that much to yourself!.
Steven J. Talrechi has been studying credit reports and credit reporting practices for the last decade. He is a thought leader in second chance banking and helping people get a new bank account when traditional institutions turn them down.
