Credit repair is not a magical fix that can work in every situation but it is possible and people who are struggling with bad credit should not sell themselves short by not even trying. There are many credit repair techniques and strategies that can be employed that will significantly improve credit reports and credit scores.
Most credit reports contain errors. In fact, it has been surmised that as high as 70% of all credit reports contain errors that can be repaired or at least improved. A common error on credit reports is when someone else’s information shows up on a report. These types of errors can usually be removed quite easily. But there are also other errors that you may have never thought of before.
The information that is deemed correct is supposed to stay on your credit report for at least 7 years. But the information should also be complete, accurate and as positive as possible for the consumer. This does not mean that a consumer has a right to just delete negative information but rather that even negative information can be shown as positively as possible. This means no misleading, unfair, unjust or incongruent information but just the bare facts. The information should be completely accurate or it should be added to, changed or even removed.
There is a lot of misinformation about credit repair out there. Some people mistakenly believe that they must be victims to their bad credit and only time will take care of it. While it is true that time will fix negative listings, there are more proactive things that a consumer can do in the mean time. Getting new accounts that are reporting good is a crucial step as effective credit repair is fixing the old and negative things that you can fix and getting new credit to overcome past problems.
Getting a copy of your credit report to evaluate your situation completely is the first step to effective credit repair. You are entitled to a free copy of your report from each of the big three credit reporting agencies, TransUnion, Equifax and Experian, one time each year. Get your report and study it thoroughly to identify discrepancies and mistakes. Make sure you also notice anything that may have been excluded. You can then identify the best steps to take next.
A crucial component of credit repair is getting new credit accounts and making sure that they are reporting good information to the credit bureaus. Many people may not be able to qualify for a regular credit card and in that case there are secured credit cards where a deposit is put down for the amount of credit extended. These cards are relatively easy to qualify for and after a few months of consistent payments your credit will have improved. Sub-prime merchandising cards may be another option to consider.
Getting negative listings removed from your credit report is exciting but you must also implement other strategies for effective credit repair. Open accounts that are reporting good credit are crucial but not all credit is given the same weight. Regular credit cards such as Visa and MasterCard, secured or not, counts for more than department store cards. In fact, department store cards should be avoided completely if credit repair is your goal.
Be sure that your credit report is showing information that is completely true and accurate and that nothing positive has been excluded. Also make sure that you are in the continual process of establishing good new credit as you go and you can repair your credit.
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