After paying off your debts and taking responsibility for your financial future, you realize it is time for some credit repair steps.
What steps can you take to repair your credit? There are steps that can be taken to restore your credit and regain your credit worthiness.
The most important thing to remember is that you will not go from bad credit to good credit overnight. Credit repair takes time.
The best way to start credit repair is to apply for new credit and make your monthly payments on time. Over time, as you keep making your payments on time, you will see your credit score increase. This may sound easy, but before you get to this point, it is important to be sure that your financial situation is stable.
Make sure you have reliable employment, that you have sufficient income and that your debts are under control. If any one of these things is not stable you could be asking for trouble and more negative credit history.
Negative credit history may remain on your credit record for as long as seven years, but the more time you put between it and your positive history, the less attention lenders will pay to your negative credit history. The longer you maintain good credit, the easier it will become to get credit.
Do not jump at the first credit card offer you get. Evaluate the terms of the offer. You will get a lot of high risk offers with high interest rates and high annual fees.
In order for credit repair to be successful, it is best to stay away from any card with an annual fee or anything that is secured with property. If your new credit is secured with cash, that is different. The most you stand to lose is the cash you secured the credit card with.
You want to inform the credit bureau of any unreported positive payment history that is not listed on your credit report. The credit bureau is not obligated to record the history, but it does not hurt to try. You will not be any worse off than you are now. If the credit bureau does choose to include the history, it can only help your credit.
If possible, submit an explanation of any negative credit on your report. Once again, the credit bureau is not obligated to include this information, but in the majority of the cases, they will include your explanation.
If you became delinquent because you became unemployed due to an unexpected layoff or you had unexpected medical expenses, the credit bureau should know this, especially if this is the only time your payments were delinquent.
Following these steps will help you get your credit record back in good shape. Remember to be patient. Your credit history didn’t become a mess in one day and it will not be fixed in one day. Also, the single best thing you can do for your credit is to make your payments on time, consistently.
Credit repair will take time, but it can be accomplished. If you had the ability to work with your creditors and get your financial situation under control, credit repair can be accomplished over time. There are also resources available online that can help get information on credit repair.