You damaged your credit so it is up to you to fix it. Understanding the credit repair process and taking action to get some credit repair help is up to you.
Credit is used as an evaluation tool by lenders, employers, insurance companies, credit reporting agencies and utility companies. Having good credit scores is critical to your financial future. Any effort that you can make to get credit repair help to improve your bad credit will be extremely beneficial.
Steps To Credit Repair & Your Credit Score
Step #1 – The Credit Repair Process
- Credit repair is simple if you have the right perspective, the proper tools and the help available to get you on the right track. Without the tools and good help, you will find credit repair a long and tedious process.
- The help available are the 3 national credit reporting agencies.
- The tools available are your credit reports, your credit cards and your payment history.
Step #2 – Understand Your Credit Reports/Credit Scores:
You need to understand how your credit scores are determined.
- All of your credit card payments, non-payments, charge offs, loan defaults, foreclosures and bankruptcies are summarized and given a value. This value is called your credit score.
- Your credit score is reflected on your credit reports.
- Lenders use your credit scores to evaluate you as a customer.
- A credit score of 300 is considered by creditors as very poor.
- A score below 750 is considered bad.
- A score above 750 would be a good credit score.
- And a credit score of 800 is considered perfect.
Step #3 – Understand the Credit Reporting Agencies:
The credit reporting agencies can help you, if you learn how to work with them.
- You should monitor your credit scores once a year; so if there are errors, you can correct them as quickly as possible. The longer an error remains on your credit reports, the more damage it will do to your credit scores plus it will also take longer to correct.
- Another reason to order a free credit report once a year is so that you have a basis to start from. If you don’t know what your credit scores are, how can you make any efforts to improve or correct them.
- You can get a free credit report on an annual basis from each of the 3 credit reporting agencies. You can do this online or by calling their toll-free numbers.
- Your personal information is kept confidential, so don’t let that worry stop you from ordering your free credit reports.
In the long run, getting a good credit score is well worth your time and effort. Where you work, live, the car you drive, the insurance premiums you pay, the utility rates you pay and the interest you pay on loans are all determined by your credit scores.
If your credit scores are below 750, make the effort to get some credit repair help. With a good credit score, above 750, you will actually save money on premiums and interest and fees.