How To Fix Bad Credit
Perhaps not since the Great Depression has the American economy been in such dire straits. Lately, we've been hearing conflicting reports on the state of the U.S. Economy. All of these reports have a hopeful note, some citing Wall Street gains, others the increase in new home starts, or this week's drop in unemployment claims. The government doesn't want to give us dismal news. Part of the recipe for an economic recovery relies on consumer confidence, so that the average citizen will be inclined to spend, rather than squirrel away their money.
However, the pep talks do wear a little thin on the ears of most Americans. Prior to the foreclosure crisis, the bank 'rescue' and rising unemployment, we were all a little more willing to spend, as well as use credit. Today, most of us are watching our money and looking for ways to cut expenses, just to make it from paycheck to paycheck. While the big banks are doing just fine, thank you, most people have suffered a dip in their credit score.
Do you find yourself in a position where you need to fix your credit? For some, this is a new experience. You may have received emails from consumer credit companies which invite you to participate in their program to fix your credit. Depending on the scope of your credit problems, this can be a good option. However, if you don't have a complicated credit picture, you can fix your credit with an inexpensive, DIY approach and save yourself the fees attached to using a company dedicated to this problem. Fix My Credit ScoreHow do you determine if the DIY approach will work for you? Most of us have at least a few credit cards, perhaps a gas card and a department store charge account or two. You may have a car loan and a mortgage. If this sounds like a match with your situation, the DIY fix your credit approach will work for you and save you some money. The process will require some time and effort on your part, but it's certainly doable.
First, you want to get a copy of your credit report. You are entitled to one free copy per year. You can obtain a copy of your credit report online or at a local credit reporting agency. Fix my bad creditLook your report over carefully to be sure that all debts listed are yours and are accurate. Identity theft is quite common now, so this step is important. If you find any debts which are not yours, or, inaccurately reflect your true debt, address these items first. Write a letter to the creditor, asking that they provide proof that the stated debt amount is yours. The law requires that the creditor furnish such proof within 30 days. If the proof is not furnished within 30 days, that debt must be removed from your credit report. Let's say you've missed some credit card payments. There's simply no way to 'undo' this fact. However, keep in mind that the creditor doesn't want you to default. The typical penalty for missed payments is a hefty late fee and/or an increase in your APR. Make contact with those creditors and try to negotiate a reversal of the late fees. It's also worth a try to ask that they reconsider the hike in the APR. While this may sound like a pie-in-the-sky hope, remember that the creditor does want to continue doing business with you, so long as they have a reason to expect that a temporary setback has caused your late payments and you can now get back on track.
It's certainly worth a telephone call. If you can reestablish a prompt payment record, it would be foolish for the creditor to send you to a competitor. For example, if you were laid off and now have been rehired, it's a good bet that you'll continue with a previously established good record of credit history. A short trouble spot on your credit report can be remedied with consistently prompt payments in the future. It may take several months for this fix your credit strategy to pay off, but it will, eventually restoring your previously good credit rating. Do you need to fix your credit? Try this DIY, inexpensive method! When you need to fix your credit, it's usually a straightforward matter of dollars in and dollars out. As you're making your initial examination of your credit report, you'll want to simultaneously sharpen your pencil on your budget. Cut out unnecessary expenses and earmark those dollars to pay down your debt. If you have several small debts, pay those off, one at a time, while meeting all other regular payments on time. As for the minimum payments on credit card debt, make each payment just a few dollars more, as you can. To successfully fix your credit, every dollar counts! |
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