It is important for most people to have a good credit rating. In order to get loans for important but expensive things like cars and houses you need to have good credit. A higher credit score can also assure that you get a more favorable interest rate. Good credit is important regardless of the state of the economy.
It is fortunate that you can do credit repair if you credit shows information that is inaccurate, misleading or erroneous. You need to issue a dispute on the questionable credit and then the credit bureaus have a specified amount of time to either verify the information or remove it from your account. You can do this on your own or you can employ the services of a professional credit repair company.
The first thing that you need to do when repairing your credit whether you plan to do it on your own or if you plan to hire a professional, is to get a report from each of the three main credit-reporting agencies, Experian, Equifax and TransUnion.
Once you have your report you will need to study it line by line. There will of course, be obvious discrepancies that you will need to deal with but there will also be more subtle things that you will need to know about that you can also dispute and repair.
Look out for information that is outdated, duplicate accounts, wrong names, misrepresented accounts and more.
Past due accounts
All accounts that are past due will affect your credit negatively unless they are brought up to date. If you are behind more than you can catch up inquire with your creditors about setting up a payment plan. If you can pay off any accounts it is helpful to do so. In that case you can completely eliminate those accounts.
Should I close my credit card accounts?
It is not necessary and it can be detrimental to close out your credit card accounts. Closing an account actually hurts you with your credit score because it reduces the amount of available credit. Department store credit cards can be closed because that type of credit is not looked upon as favorably as other types of credit.
Can I still apply for credit?
Do not apply for any further credit as you are attempting credit repair. Every inquiry counts negatively towards your score and your credit repair success will come easier if you do not add anything to your reports. After your credit repair is completed you will have more success in getting more favorable rates and getting the loans that you need anyway.
Effective credit repair can change your life for the better. It will take some expertise and some time to effectively complete the process but it will make a beneficial difference for your finances. In order to achieve the best results you may want to consider the services of a professional credit repair service.
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