Bad credit problem? No matter how bad your situation, there is hope. This article offers simple but effective steps towards quick credit repair.

Now, how fast you can fix your credit is relative. No two situations are alike, and there is no one size fits all. Your individual financial situation as well as your personal determination and efforts will all come to play. And, to be honest, credit repair does not work for everyone.

First, you need to know what is on your credit report. Get your credit report from all the three major credit reporting bureaus.

While you are at it, avoid free reports and, where possible, also avoid obtaining them online. I have explained the reason for this in other posts and will not repeat it here. If you already have a recent all-three-bureau report from, say, a mortgage company, you can use that.

You should also get your credit score from either FICO or Equifax (Only Equifax offers the real FICO among credit bureaus).

Why FICO score? Simple: Because it is the score that most lenders use. You want to be on the same page with most lenders.

The quickest way to fix your credit and begin to enjoy lower interest rates as well as qualify for loans and credit cards is by raising your score. Once your score is raised to a reasonable degree, you will be able to obtain more credit which will help improve your credit even more. 

Now, let’s start with the obvious. Begin to pay your bills on time. This factor alone accounts for the biggest chunk of your score. When you are late on a payment, you loose, big time. Do everything you can to avoid this, if it means robbing Peter to pay Paul.

Next, read through your report. Check for mistakes. There is a chance (some surveys put as one in three) of having erroneous information on your report. Look for inaccuracies in dates, names, balances, credit types, and any missing accounts that you pay on time.

You should also be on the lookout for duplicate reporting (that is, the same account getting reported more than once).

Once you’ve established that indeed errors do exist, you have three options. One option is to write to the bureau(s) whose report is in error and explain your position. If you have documents to prove your point the better; enclose them.

The second option is to utilize a rapid rescorer. Rapid rescorers are agencies that work as median between creditors and credit bureaus. As you may have guessed, their work is to speed up the rescoring process. Reputable rapid rescorers do not work directly with consumers; ask your creditor or mortgage company for this option.

The third option is to alert the creditor(s) about the error(s). This is much quicker than contacting the bureaus on your own, as creditors can correct errors at the push of a button.

You can also raise your credit score fast simply by reducing your debt. But, do not close any open accounts. Just pay down you debt to about 30 per cent of your balance, and you will see an almost instant raise score.

Alternatively, you could ask your bank raise your limit. You could also transfer money between accounts, so that none is at or near maximum.

One strategy that credit repair companies use is to dispute entries on reports. Once an entry has been disputed, it is must be taken off until verified. This is a strategy you can utilize yourself and avoid paying someone a hefty fee to do it for you.

When disputing credit report information, take care not to dispute accounts in good standing, or accounts that are open. You need those accounts to keep your credit history, and it also helps your score.

To repeat, unless an open account is a real thorn on your side, don’t close it, even if you’ve had late payments on it.

How does disputing credit accounts work? Well, it works on the premise that old archived accounts just might not be verified, or the creditor might find it not worth verifying.

But, disputing credit accounts may or may not work. For one, credit bureaus are well aware of this tactic, and may dismiss your request for verification on grounds of being “frivolous”.

Secondly, some creditors are very diligent, even vindictive, and will verify accounts at a speed that might surprise you. Believe me; I once saw an account for a very small amount get verified, and it was more than five years old!

The dispute strategy is worth a try, all the same.

If your objective is to reduce – or get out of debt – you could start by paying off some of them. Some experts recommend paying off the account(s) with the highest interest rate(s). This might not necessarily be the best way to go. Why?

Well, the credit card with the highest interest rate could also be the one with the biggest balance, as was once my case. If you start by paying that one of, you might not have enough to cover the rest of your debt. Also, if problems arise somewhere in the middle all your hard work could come to naught.

Perhaps a better way is to pay off the account with the lowest balance. This has a double positive effect. One debt is out of the way, and you are more motivated from the “win”.

But perhaps the best way for quick credit repair, bar none, is negotiating with your creditors and/or debt collectors. Not only can a creditor or collector remove negative items from your credit report, they can also give you breaks on some fees.

——————-
Discover rights that you can use to your advantage and begin to clean up your credit file. Plus tips and tricks creditors and credit bureaus don’t want you to know. Check out the Credit Secrets Bible today!