How To Fix Problems On Your Credit Report 

Being turned down for credit cards, home loans, and automobiles loans can be disappointing for anyone. If you are going through this ordeal, it’s time for you to take measures that will improve your credit score. Focusing on credit repair how to will eventually put you in place to become the ideal candidate to borrow money from financial institutions around the country. 

There’s an old saying in the credit repair industry, “Slow and steady wins the race.” It’s imperative for you to understand that the process of enhancing your credit will take time. It could take several weeks or several months to raise your beacon score. However, taking positive action and exercising patience will help you get to the finish line. 

What is Credit Repair?

Credit repair is the process of disputing errors and mistakes on your credit file. When it comes to credit repair, you must deal with three major credit bureaus (Equifax, Experian, and TransUnion). Each bureau has a version of your credit report. They make an earnest effort to maintain accurate information, but mistakes can be made. This is why it’s vital for you to check your beacon score periodically. 

With credit repair, you can correct these errors by sending a dispute to the credit bureau that issued your report. If the item in question cannot be validated within thirty days, the credit bureau must remove it. This is an easy way to remove negative items from credit report. 

Why is Poor Credit Bad for You?

As we stated earlier, a low credit score will make it extremely difficult for you to get approved for a consumer loan. Let’s say that you would like to buy a home. A low score can easily disqualify you from getting approved for a mortgage. Can you go through life without fulfilling your dream of becoming a homeowner?

Fortunately for you, you can start turning things around after reading this article. We will now take a close look at 5 tips to improve your credit score. If you put these credit improvement tips in action, there’s no reason why your beacon score will not improve.

1. Getting a Copy of Your Credit Score/Report

The first step towards improving your credit score begins with you getting a copy of your reports. A recent study conducted by the Federal Trade Commission reveals that 1 in 5 consumers had an error on one of their credit reports. 

It doesn’t take a rocket scientist to figure out that your credit scores are determined by the information in your reports. This is why it’s important for you to make sure that all the information on your reports is correct. At the end of the day, an error on your report will have a huge impact on your score. 

Contrary to popular belief, it’s easy to get a copy of your credit report. Under the Fair Credit Reporting Act, you are entitled to get a free copy of your report once each year.

Here’s a quick breakdown of the credit score tier:

Excellent Credit Score: 750+

Good Credit Score: 700-749

Fair Credit Score: 650-699

Poor Credit Score: Below 600

2. Identifying Errors on Your Credit File

Once you get your free credit reports from the credit bureaus, it’s important for you to check for the following:

-Are bureaus listing all your credit accounts?

-Is your personal information listed correctly? This includes your birthday, social security number, and full-name.

-Are old items (beyond 7 years) listed on your report? 

-Do you see any accounts that don’t belong to you?

-Are there any missed or late payments you remember making on time?

Make sure you go through your report carefully. Use a highlighter to point out the errors or mistakes. Please keep in mind that one credit bureau may have an error on your file, while another may not. This is why you must get a report from each bureau. 

3. Contacting Creditors Reporting Inaccurate Information

Remember that all three bureaus operate independently from one another. This means you will need to dispute inaccuracies with each bureau individually.

You can send a dispute letter to the credit bureau or you can dispute the error on the credit bureau’s website. Many credit repair experts believe consumers are better off sending a dispute letter to the bureau. This will force the credit bureau to act promptly. Please keep in mind that the bureau has 30 days to validate or remove the error. 

If you decide to send a dispute letter to the credit bureau, make sure you send it via certified mail with return receipt. This will help you prove that you made contact with the credit bureau.

Please give the credit bureau time to respond to your request. If they do not respond, you should consider taking legal action. In most cases, the credit bureau will respond to your dispute within 30 days. 

4. Applying for an Automobile Loan or Unsecured Credit Line (Credit Diversification)

Getting an automobile loan will have two effects on your credit. It will add a hard inquiry on your report. When this happens, it will lower your score by a few points. However, getting an automobile loan will have a positive impact on your score if you make your auto payments on time. Once you have paid off your car loan, your credit score will increase tremendously. 

Getting an unsecured line of credit is another option that you should take into consideration. The application process is simple, and you will get the lender’s answer within minutes. 

How can an unsecured line of credit help you? Like an automobile loan, it will help you build up your credit score. Timely payments will gradually improve your credit. Timely payments will also help you build a strong relationship with the lender. It’s fair to say that the lender will view you as the ideal candidate for another loan product if you manage your line of credit wisely.

Make sure you get an unsecured line of credit from a reputable lender. Some lenders are notorious for taking advantage of consumers with bad credit. Doing your due diligence and reading the fine print listed on offers will help you find a credible lender. 

To be honest, you should apply for an automobile loan and an unsecured line of credit. This is called “Credit Diversification”. A mix of both will have a positive reflection on your credit file. 

5. Making All Future Payments on Time

It’s your responsibility to make all your future payments on time. It will increase your beacon score and the lender will feel comfortable enough to raise your credit limit. 

If you’re late with your future payments, your beacon score will drop. When this happens, you are on the verge of falling into the lower credit score tier. It will take hard work and time for you to get out of that predicament.

Make sure that you keep up with your due dates. This will help you avoid making late payments to your creditors. You can use pen and paper to record your due dates. You can also use an app to record your due dates. The app will let know you when it’s time to pay a bill. 

We promised 5 tips to improve your credit score, but we decided to give you a special bonus. 

6. Hire a Professional Credit Repair Agency

You may be tempted to tackle your credit issues on your own after reading the 5 tips above, but you may want to consider hiring a professional credit repair agency to do the job. A professional credit repair agency can help you dispute items on your file and remove negative items from credit report. This is the primary reason why their popularity continues to increase as time progresses. 

A professional credit repair agency typically has staff that will work extremely hard to remove blemishes on your credit file. 

Here are several traits of a good credit repair firm:

Experience

You should only consider hiring an agency that has several years of experience in the business. Most consumer affairs experts believe that consumers should not work with a credit repair agency if they have less than five years of experience in the industry. 

Fees

Evaluating the agency’s fees is another crucial point that you cannot afford to overlook. Is the firm charging a modest fee for their services? Shopping around will help you to find a credit repair firm that will work with you for a reasonable fee. 

Referrals from Past Clients

Ask for referrals from past clients. This will help you find out if they have performed well in the past. If the agency is above-board, they will not have any problem giving them to you. 

Licensed

Do not do business with an agency that is not licensed in your area. If you do, there’s a possibility that you may run into a serious problem. 

Having poor credit can ruin your chances of getting approved for a personal loan, automobile loan, and home loan. Concentrating on credit repair how to will help you to raise your beacon score. The 5 tips to improve your credit score listed above work if you apply them properly. It's time for you to take action today.