4 Easy Steps to Repairing Your
Credit
By Loral Langemeier (as seen on the
Dr. Phil Show and website)
Your best tool for repairing your credit is
knowledge. With a little coaching you can do it yourself. You don't need to
spend money with a credit repair company. Not all credit repair companies are
credible. Many are downright fraudulent. All you need is a good pen and paper,
or word processing tool. Federal trade law states that all communications
between you and your creditors must be in writing. This is all that the credit
repair companies charge you for.
The place to start is to get a copy of
your credit report. Everyone, by law, is entitled to one free credit report per
year. There are a number of services online that will provide you with your
current credit report either free or for a nominal price. Once you have it in
hand you will need to address each and every item on the report.
1) Confirm the
accounts are yours. Look at each open account and confirm it is yours. If you
have a common name, or share a name with a parent or adult child, the chances
are good that there will be accounts that are not yours. You will dispute these
accounts by sending a letter to the creditor or calling them. Their phone
number is at the end of the credit report. You will need to obtain, in writing,
a statement that the account is not yours and is incorrectly reported on your
account. Send a letter to the credit bureau asking them to remove it from your
credit report. Remember, Federal trade law states that all communications
between you and your creditors must be in writing.
2) Eliminate
collections and judgments. Look at the accounts that are yours. Next you're
going to look for collections and judgments. Collections and judgments kill
your score. If you have either, the best case is that they are small. They need
to be paid now. Get a receipt for payment. Send it to the credit bureaus. Their
address is on the back of the report. This is the fastest way to improve your
score.
3) Pay open accounts on time, always. There's no way
around this one. If you have open accounts that are yours, you need to pay at
least the minimum monthly balance. Every month you pay on time your score will
creep up. After six months there will be a noticeable jump. After 12 months,
even greater jumps in your score will occur. This is what you are striving
for… keep current!
4) Keep your accounts around 50%.
Finally, for your active accounts, check the available limit to borrow and make
sure your balance is at least below 75% and preferably below 50%.
Remember: Always pay
on time, eliminate collections and judgments, and eliminate accounts that are
not yours!
Ready GO!
For free debt calculator and expense
worksheet to help put you on the path to successful debt elimination and wealth
building, click here
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