Understanding How Credit Repair Actually Works
In this world of instant gratification and immediacy there’s something important to understand about credit repair; there is no such thing as a quick fix. If your credit is damaged; badly damaged; it’s going to take time to repair. This is a good thing to understand upfront so that you can take the long view of how to make it better. Rome wasn’t built in a day and it has yet to be destroyed. By that reverse rationale your credit wasn’t destroyed overnight and it will take it’s time to be successfully rebuilt. Remember these few things so that you can more completely understand just how credit repair actually works.
Know Your Credit Score:
Before you do anything; before you sign up for any programs, declare bankruptcy, liquefy all your assets and flee the country; you have got to know your credit score and get your credit reports. Credit reports are offered by three agencies; Experian, Trans Union, and Equifax. There are a number of legitimate resources which offer you a free copy of your credit report each year and you are entitled to 1 per year. You should take advantage of these free services. You can also save yourself a step and reach out to the credit reporting agencies directly and get your free credit report from them once per year via AnnualCreditReport.com.
It’s Not So Bad:
Most of us think our credit score is probably a lot worse than it is. Your credit score (also called a FICO score) is the mathematical averages of the scores on your three reports. Your credit score will fall somewhere between 300 and 850. 850 is excellent; 300 is as poor as you can get. Your credit score range above 680 is generally considered “good.” A credit score between 620 and 679 is average. Anything below 620 isn’t great. But even if your score is that low don’t worry. You can make it better by making small changes to your life and spending habits.
Doing Credit Repair Yourself:
For every bill you pay on time, every old debt you retire, every outstanding debt you settle with, and every new account you keep current, your credit score will rise. You can’t pay your bills consistently truant or pretend like an old debt doesn’t exist. This is the reason you need your credit score and report. If there are items on your credit report that are not yours then you need to contest them. If you need assistance in the process because you don’t know where to start, leverage a credit repair service to help you.
Instant Fixes Are Lying:
Any agency who tells you they can “fix your credit overnight” and “solve all your credit woes” is lying. There is no silver bullet. Even if you pay off and close all your outstanding accounts your credit won’t be repaired right away. It’s taken it’s time to work itself into such dire straits; it’s going to take time to get better. You’re going to have to show the credit reporting agencies that you didn’t just win the lottery or come into an inheritance. Because if that’s how you’ve paid all your debts, that’s great. But the chances of you falling back into debt are quite high.
Don’t Swear Off Credit:
Trying to fix your credit is like trying to get better at baseball. You can’t hit a home run if you don’t step up to the plate and swing the bat. You’ve got to participate to make your credit better. So even if you’ve had problems in the past that doesn’t mean you should swear off credit entirely.
Your credit will get better the second you make the conscious decision that you want it to.