$2.17 for Children or Grandchildren
Five Practical Steps to Repair Your Credit
Bad credit can do more than just mess up your probability of obtaining a credit card. Bad credit makes it more difficult (and more expensive) to buy a car, buy a home, and can even hurt your chances of being hired at a company that you want to work for. Every mistake that you make when it comes to your credit can follow you, making it difficult for you to become truly financially secure.
If you have bad credit, you can change your financial future dramatically by learning to repair your credit with these simple steps.
Obtain your credit report
Too many consumers still don’t know that they have the right to view their personal credit report. The law states that consumers may have access to their personal credit reports from all three credit reporting bureaus once per year. There are plenty of websites that will help you obtain this free report (just don’t let them trick you into paying for it.) You should do this every year, even if your credit is not bad, in order to keep the information on your report updated and free of errors.
Dispute any errors
Identity theft, mistakes made by creditors, and other factors may lead to errors on your credit report. Once you receive your report, you need to review it carefully for any errors, such as incorrect information, incorrectly reported late payments, or accounts that aren’t yours. File disputes against any errors. The credit reporting agency will review the disputes and remove any true errors.
Learn your rights
Consumers have specific rights under the Fair Credit Reporting Act (FCRA). You can download a full explanation of these rights from the Federal Trade Commission’s website. Included in those rights are the rights to view your information, dispute incorrect information, and seek damages from violators. The FCRA also protects consumers by making it illegal for reporting agencies to continue to report outdated information. If negative information on your credit report is over seven years old as defined by law, then it should not appear on your credit report.
Repay your loans
In order to repair your credit, you are going to have to repay what you actually still owe. Once you’ve corrected any errors that appear on your report and have determined what you are no longer liable to pay, repaying what’s left should be your target. Start by catching up all accounts that have late payments due. Once your accounts are up to date, try paying a little extra on the accounts that have higher balances.
Limit credit report views
While you’re trying to repair your credit, limit the amount of times that you apply for new accounts. While it may be tempting to take advantage of that rising credit score, each inquiry for a new loan affects your credit score. Having more than two inquires a year will start to negatively affect your credit.
Don’t think that you can just ignore your bad credit. Having bad credit is a serious problem, if your goal is financial security. Even if you make a lot of money, the extra interest that you have to pay when you have bad credit means that you’re throwing money away left and right: money that you could be saving.
It’s best to face your bad credit head on and take the steps that you need to take to fix it. The sooner that you start to work to repair your credit, the sooner you’ll be able to leave behind the stress and financial disadvantages of having bad credit for good.
You might also be interested in...
- 7 Steps To Choosing Health Insurance
- 8 Steps to Protecting Yourself Against Identity Theft
- Life Insurance You Can Afford
- Are Negative Habits Keeping You From Your Financial Goals?
- Best Retirement Tips for the Younger Generations
- Calculating Life Insurance Needs
- Can You Climb Your Mountain of Debt?
- Be Careful! You Just Might Get What You Paid For With These Cheap Life Services
- Eating On A Tight Budget
- Five Costly Disasters Your Auto Insurance May Not Cover
- Five Practical Steps to Repair Your Credit
- Five Ways to Cut Back on Your Grocery Bills
- Four Bad Financial Habits You Need To Break Now
- Getting Out of Debt: Start Taking Control of Your Finances Again
- Good Financial Habits
- How To Deal With Debt During A Divorce
- How To Get By On Social Security
- How to Host an Inexpensive Dinner Party
- How to Rebuild Your Credit and Increase Your Score
- Insurance Myths
- Is it Worth it to Get a Credit Monitoring Service?
- Making Life Transitions
- The Pros And Cons Of HARP Refinance
- Ten Essential Tips for Managing Your Personal Finances
- The Importance of Life Insurance You Can Afford
- Top Financial Mistakes That Can Spoil Your Retirement
- Top Ten Cheap Ways to Keep Your Kids Entertained
- What's the Point of Points?
- 4 Ways To Treat Rosacea Naturally
- 4 Natural Remedies For Varicose Veins
- 8 Ways To Grocery Shop On A Budget
- The Holidays On A Budget
- Tips For Women On Saving For Retirement
- Home Remedies For Heartburn
- 8 Great Uses For Tea Tree Oil
- The Best Natural Treatments For Sinus Sufferers
- Old Medical Hacks That Still Work
- How To Shop Healthy On A Budget
- The Best Home Remedies For Sunburn
- Charitable Giving On A Budget
- Money-Saving Tips That Actually Work
- 10 Ideas For Budget-Friendly Family Fun
- Can a Reverse Mortgage Save Your Monthly Budget?
- How to Get Free Money For College
- How To Have A Humble Holiday
- Top 4 Ways To Save For College Education
- Can you borrow money from a life insurance policy?
- Cashing Out a Life Insurance Policy
- Can I Sell My Whole Life Insurance Policy?
- Layering Term Life Insurance Could Save You Money