A bad credit score can seriously impact on your ability to obtain credit, so it’s vitally important to monitor and maintain your credit file.
If you have just recently been refused for a loan or application for credit, you may need to repair your credit file. Being denied credit is frequently the outcome of a bad history of money management, which can happen in 2 circumstances. You have either handled your credit inadequately, or you have some errors both of which will show up in your credit report. It is very important that you view your credit file and make changes to fix it as soon as possible.
Below are some steps which can help you to repair your credit file
- Visit one of or all 3 of the credit bureaus and obtain your credit file. If this is your first time getting your credit file, you should be offered a free 30 day trial.
- Once you have your report, examine it carefully. You need ensure that all the entries are correct and make a note of all those which are inaccurate and which are hurting your credit report.
- After you have identified the wrong entries, you have to call the credit reporting companies and inform them of these errors. Some sites will allow you to do this from in the report its self.
- If there are some negative entries but are correct, you could still try to get these removed by contacting the company you had dealings with and make a case for getting them removed if you are right to do so. A late payment, for example, could be down to the company and their system. If you know that you were the cause of the negative entry, there is not a lot you can do to get these removed
- Any time you write to a company make sure you make a copy of the letter or email you send and send it via recorded mail/ This will ensure you have evidence of your attempt to contact these companies
- Within a month you should be notified of any outcomes on disputed entries. If the credit companies see that the entries are in fact wrong, they will remove them from your credit report which should result in your score improving. If the issue is not dealt with to your satisfaction, you will have the right to appeal and challenge the result.
Remember the best steps to you can do to have a good credit file is to prevent negative entries in the first place. Managing your money is a vital skill everyone should learn.
People who have a bad credit history will often resort to desperate means to fix their report such as hiring a company to help. This can often hurt your credit report more or be done illegally.
Below is some important points that you should pay close attention to
- Many companies offering credit repair services try to lure people in with false claims of bad credit repair be telling them they can create a new credit file for them by giving them a new identity.
- Some credit repair firms make claims to individuals that they can improve credit by getting accurate information of an unfavorable nature deleted from their credit reports, hence enhancing their credit rating. Therefore, you should not rely on anyone who informs you that they can fix bad credit by removing negative products from your credit report.
- No credit repair work company is lawfully allowed to ask for advance payments. Therefore, do you trust any company asking for payments upfront to help repair your credit file