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Do you have a poor credit rating? If so, you
are one of tens of thousands of Americans with
the same problem. In fact, it seems that this
has become a national 'disease.' And just what
do people need that have a disease? They need a
cure.
Here are some sure-fire solutions to ' repair
bad credit '. Keep in mind, like most
'diseases,' credit repair can take some time,
but complete healing is possible.
The First Step
The first thing you need to do is find out
what is being reported about you. This is easy
and inexpensive. For under $10, you can get your
credit report from one of the three main credit
reporting companies: Equifax, Experian, or
TransUnion. Keep in mind however, that if you
have recently been denied credit, you can get a
free report from the same credit bureau the
lender used to reject you as long as you do so
within 30 days.
What You Don't Need
You don't need a repair clinic. Why? There is
no legal way to 'repair' your credit. Those that
claim to know loopholes and shortcuts are merely
out for your money. They may even get you into
legal trouble by having you fudge the facts or
creating a whole new file for you. Anything
legal that a clinic can do, you can do just as
easily and without the cost of 'professional'
help.
Further Steps to Take
1. Stop using your credit cards immediately.
Put them somewhere where they will not tempt
you. You may consider keeping at least one card
for emergency purposes. Additionally, with poor
credit, you may find it more difficult to get a
credit card in the future. If you keep at least
one account open, then you won't have to worry
about applying.
2. Be Honest With Yourself. Taking a good
hard look at your financial situation,
particularly if it isn't good, can be very
difficult. Yet, to get out debt you have to
fully understand what the situation is.
3. Find the Errors. Believe it or not, up to
40% of all credit reports have errors in them.
If you find that your credit report shows
something that is not true, you need to write to
them with all the details. Be sure to use
certified mail so that you can keep track of who
you wrote to, when you wrote, and who received
the mail on the credit bureau's end. Then ask
the credit bureau to send a corrected report to
anyone who has requested a report on you in the
last 6 months
4. Find the Omissions. By law, you are
allowed to add information to your report that
you believe will help your rating. This might be
additional information about a repayment of a
loan, good credit you have with companies that
do not report to the credit bureau, or salary
increases.
5. You Must Have a Plan. Whether you
determine to pay your bills down little at a
time, take a second job, go to credit
counseling, or file bankruptcy, you need to make
a plan and stick to it. In order for your credit
to be improved, you have to have a plan and then
take action!
6. Talk to those that you owe. Creditors want
their money. They do not want you to default
(quit paying). In fact, most creditors will work
with you to get a reduced payment schedule. If
you can keep them from reporting you to the
credit bureau, then it won't hurt your credit.
The catch here is this: be sure to stick to the
new negotiated plan &endash; they won't
renegotiate if you fail to comply.
7. The Best Cure is Time. Have you ever heard
the saying 'time heals all wounds'? It also
heals your credit. After 7 years, most items
will be dropped. This is good news if you are
working to correct your credit. As each year
passes, more and more bad items will drop off
and more and more good items will be included.
Eventually, the disease will be cured.
Follow these steps and you will find that
your credit looks healthier and healthier each
day. Eventually this path will lead you to full
recovery. Good Luck!
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