Is it possible to live with bad credit? Yes, but it’s going to be tough. Having a bad credit score can make things impossible, pricier and a lot more complicated. For instance, drivers with bad credit scores are usually charged higher interest rates by most insurance companies. Also, if you are acquiring new utilities, the company will have to verify your credit history before deciding whether you should shell out a security deposit or not and since banks examine credit scores, it would also be difficult to get a loan or a credit card if you have bad credit score.
Fixing bad credit is important to save money on loans, insurance and credit cards. Additionally, having a good credit score means having more opportunities such as employment, salary increase and promotions so it is important to fix bad credit in order to secure your finances in the future.
There are credit repair companies that can help you with your credit score but be careful in choosing credit repair help. Note that not all services operate legally so it is important to distinguish the legitimate companies from the bogus ones. Another important tip to remember is that there are certain methods that you can do on your own to repair your bad score so it is recommended to determine your options before signing up to something that may cost you a lot of money.
Acquire a copy of your credit report, and then examine it.
The first step on how to fix bad credit is identifying the things that require fixing. Credit reports include the errors you have done that resulted to bad credit score. Examine your credit report to know the negative items that affects on your score. According to the law, you have the right to get a free copy of your credit report every year from the 3 credit bureaus. You can claim your annual credit report through AnnualCreditReport.com or order it via email or phone.
Do not get too overwhelmed by the information in your credit report. Familiarize yourself with the data included in your credit report such as your personal information, comprehensive history of your account, bankruptcy and inquiries that you’ve made. The following are the usual kinds of information that that need credit repair help:
- Due accounts that are charged off, late or have been forwarded to collections.
- Wrong data including payments, which have been mistakenly reported late, and accounts that are not yours.
- Accounts that have reached their credit limit.
Everybody has the right to dispute any incomplete or inaccurate information in a credit report. You can dispute online, which is easier and faster. However, you may not be able to acquire written records for it unless you take screenshots of everything. Therefore, it is recommended to deal with your disputes via mail so that you can send evidence that backs your dispute. Your dispute should have your credit report copy together with the highlighted items you are disputing as well as a duplicate of the proof supporting your dispute. This way, the credit bureau will be able to conduct a better and more effective investigation.
Another option to fix bad credit is to send disputes to the business or bank that recorded the data on your credit report since they also have the legal responsibility to examine your dispute and eliminate incomplete, incorrect or unverifiable data from your credit report. After a successful dispute, your credit report will be updated. The bureau will then make the modifications needed and notify the other credit bureaus.
Joan Geller is a writer and researcher who provide assistance to individuals with bad credit history. She’s been a part of National Credit Organization as a consultant for a few years and she has written tons of articles about credit repair help, which has been published in various business magazines and online sites. You can visit her website nationalcreditorganization.com to know more about different methods on how to fix bad credit.
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