×
Calculator on a pile of money

Fixing Your Credit Can Be Hard, But Not Impossible

Proper Steps Are Require to Fix Your Credit

Since bad credit can weigh down your life and put a stop to your future plans, it’s no wonder that people are always Googling: “how to fix your credit.” Better credit can restore your financial stability, job prospects, and freedom.

While it can be difficult to repair bad credit, it’s certainly possible to improve it with the right tools and a careful approach. Begin by learning the steps to building credit, including what organizations can help you and which ones you should watch out for.

Credit Repair Information

To begin, it’s important to realize what caused your bad credit. It likely took some time and several poor actions to bring your credit down, and it follows that it will take some time, effort and commitment to restore your credit and your good name.

Bad credit repair begins with the right organization, and with all the free credit repair scams out there, it can be difficult to find a legitimate company to help you. Lofty promises to erase bad credit may be tempting, but they’ll often end up costing you. They also won’t deliver what they said they will.

In fact, it is illegal to simply erase correct credit history, and it’s also against the law to demand that you pay for their services before they’re delivered. Beware of offers that seem too good to be true, or promise extremely quick results.

How to Get Started

You do have certain rights, and there are some things that you can do for free to help mend your bad credit.

First, if you believe that the negative information in the report is false or incomplete, you can ask for a free investigation into the issue. Contact one of the three big consumer reporting agencies for a free, accurate credit report. Equifax, Experian, and TransUnion are required by law to provide a free report once every year.

If you choose to argue that your information is inaccurate, send a letter of dispute to the consumer reporting agency, clearly outlining what is incorrect and why. If the negative information in your report is accurate, don’t bother disputing it because you won’t get far.

The next step will be to find a credit repair service who will clearly state what they can do for you and how much they will charge. It’s very important to work with a legitimate company to avoid any further problems with your credit, as any illegal action can land you in deep trouble. Be sure the contract includes the company’s name, business address, the guarantees they offer, and how long it will take to get the results they promise.

You’ll need to create a debt repayment plan and commit to a budget to help dig yourself out of your financial problems. If you are unsure how to proceed, contact a credit counseling agency for advice and guidance.