The Credit Repair Process - Can I Do It?

Getting assigned a bad credit rating is much easier than the process of credit repair. The importance of having a good credit history cannot be emphasized enough. Bad credit can hinder you from purchasing a house, obtaining car financing, getting a cell phone contract, or even a highly coveted job.  Contrary to popular belief, the credit repair process is much easier than you may have believed. If you have come to the point where you want to do it, then you certainly CAN do it. Just follow a few simple steps:

Request a Credit Report

The first step in improving your credit score is to understand and analyze where the core issues lie.  Your credit report can be made available to you free of cost from a few providers, or for a nominal cost from many other credit agencies.  While you may already have an idea what issues resulted in negative entries on your credit report, it is important that you verify all negative entries for validity against genuine mistakes, or even identity theft.  These issues are possible, and can be easily tackled, after being identified.

Make a Plan

Once you have identified the core issues, you need to review your cash flows and prepare a budget for planning your expenses and payments.  This may need to be refined on a daily basis for review and reinforcement.

Stick to Your Plan

This is the hardest part.  Most consumers tend to have trouble remembering their plan.  Paying your mortgage and your bills on time is by far the single most important aspect in repairing your credit.  You may be surprised at the impact even a single monthly payment can make on your credit score.

Using Professional Help

Whilst you can certainly tackle the credit repair process by yourself, some individuals prefer to be guided by professional help. You can approach credit repair businesses, or even credit repair lawyers who will help you restore your credit. A company specializing in credit repair reviews your credit reports, identify your problem areas and help you set a budget with concrete milestones that you need to meet.

Since credit repair companies have fees, carefully review the company you want to use for their legitimacy, business practices and ease of relationship with the individual counselors.  Remember you can easily consider undertaking this activity by yourself, and chances are you will have to do some of the work yourself anyway.

Beware of Credit Repair ‘Quick Fixes’

There are a number of fraudulent companies that offer quick credit repair by offering to delete negative information from your credit reports in return for a nominal fee. You should be aware that these are scams, and stay away from such offers.

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