Credit Repair

3 Credit Repair Secrets You Must Be Aware Of

If you have a poor or bad credit score, there are three credit repair secrets that you must be aware of. The first thing that is very important for you to keep in mind that just because your FICO score is low, it does not necessarily mean that you have been bad with your finances. Sometimes, the negative entries in your credit report occur because of no fault of yours. Many times, it can happen because of your bad financial moves, but even in those situations, you often have several options to repair the damage by introducing some wise financial moves. Following is a brief rundown on the three basic things that can help you get your finances back on track by thoroughly repairing your credit.

It Is Possible To Negotiate Debt Repayments With Creditors

Making late or missed payments is one of the major culprits that affect credit reports negatively. If you have missed a couple of payments, you must not forget that it is possible to discuss your situation with the creditor. This is first of the three credit repair secrets that you must know. Most people unfortunately never pay attention to this fact and they actually start ignoring any contact with their creditors. For example, they stop taking their calls or responding to their notices. You must not do this, as it will only make things worse and more complicated for you. The easiest and best way is to meet your creditors or at least write them a letter explaining the financial hardship you are going through and the reasons why you failed to make the payments. You can request them to make some adjustments in the repayment plan so that you can affordably and conveniently pay off the loan in a timely manner. Creditors are very much likely to accept your request, especially if they find that your request is genuine. Once you start making timely payments as part of the new repayment plan, you will see significant improvements in your credit score. So, instead of expecting any miracle from a credit repair company, you are advised to work on the task of debt management.

Some Debts Are “Zombie”

The second of the three credit repair secrets is that not all debts are enforceable. Many debts expire over a certain period of time, such as because of statute of limitations. Such debts are often termed as “zombie”. There are many unscrupulous collection companies out there in the market that are in the business of buying “outdated” debts in hopes that they will be able to collect at least some portions of those debts. If you are receiving collection calls for a debt that is over ten years old, the chances are that you probably do not owe that debt anymore, not legally. Therefore, it is time you must review your credit reports thoroughly to find out if there are any negative entries in connection with zombie debts. If yes, take necessary actions to get those entries removed. As part of the process, you can simply file a dispute letter with the credit bureaus, explaining why those entries must be removed (because they are zombie debts).

Creditors And Credit Bureaus Can Make Mistakes

The most important of the three credit repair secrets is that mistakes can be made on part of the creditors and credit bureaus also. Many consumers have the misconception that people working with creditors and credit bureaus are highly qualified and experienced professionals and that they can never make mistakes. They might be good professionals, but as a matter of fact, there is no guarantee that they can never make mistakes. As per a recent report, it has been found that over 50% of consumers suffer from low credit score just because of some errors in their reports – where either the creditors reported wrong information or the credit bureaus made the incomplete or incorrect entries. Therefore, it is very important for you to do a thorough review of your credit reports at least once every six months to confirm whether everything on your report is being reported correctly.

As you can see, the above three credit repair secrets are actually no secrets, but just common sense – but, inst common sense something very uncommon? When people see a low score, they panic and they start making unwise moves, such as signing up for the services of a credit repair company that makes big promises and offer some quick fixes. You don’t have to do that. Work on the above three things whenever you see some problem with your FICO score; the chances are that you can improve your score significantly by making some wise moves without investing any money.

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Posted in Credit Repair, Fix Your Credit | 1 Comment »

One Response to “3 Credit Repair Secrets You Must Be Aware Of”

  1. Martin says:

    A well written article on the three best ways you should know to increase your credit score .Low credit ratings does not relate to bad financial planning always ,some time it might possible due to some wrong entries by your rating agency. Missing a monthly payment or making a late payment are major factors in lowering a credit score. Rather you should talk to your lenders and explain all your problems with them or you can ask them to suggest a suitable repayment plan for you .Choose an installment which is comfortable to you. This way you can handle your finances in a better way. Take a close look on your loan accounts it might possible that there may be some old loans lying in your name and you could be harassed due to these. As these are being too old and you did not have to pay to close them. You can give consent to your rating agency declaring all these loans which are more than ten years old. Third and the major factor is your credit rating agency which can also make a mistake in establishing your credit worthiness. Take a close look on your reports.

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