
Credit Repair: Essential to a Better Score
When your credit score is indicative of your ability to manage debt, it is important that you are able to find ways to increase it. This can be especially difficult if you are dealing with past mistakes or bills that you simply can’t pay right now. Here are a few tips on getting rid of those problems on your credit report and getting on your way to a better score.
Is it a mistake?
Every year, you are able to get a free credit report showing your score and the things being reported to the big three reporting agencies. This will allow you to double check and make sure nothing has been reported that you have either already paid or that wasn’t your debt in the first place. In the event that you find a mistake on your report, you can file paperwork with the agency showing it (or all three if they are all showing it) saying it is a mistake and why. This might be submitting proof of payment if you already paid or it might be saying this wasn’t you and disputing the charges entirely.
In the event your identity was stolen and the charges weren’t yours in the first place, you need to also contact the company claiming it is your debt and let them know of the fraudulent charges. It is also a good idea to work with an expert company at this point because they will know the legal means to getting this removed and finding the person who stole your identity that you don’t on your own.
A lot of debt
When you get your credit report, it might show a bunch of debt that you already know about and need to get paid off to increase your score. If you are looking to buy a home or need to get a new car, you will need to get your score up right away instead of waiting a long time to pay it all off. One really awesome way you can do that is through a consolidation loan. Often, these loans go unreported to the reporting agencies as long as you are continuing to make regular payments, and you are able to pay off all the money you do owe and get your credit score increased in the meantime. Even if it is reported, one loan is still going to look better than owing cash to a few different places or having multiple accounts reported as in bad standing. Plus, many companies will give you a discount on what you owe if you pay it all off at once, which could save you money as well.