Top 5 Credit Fix Steps

There are many ways to fix your credit. We have decided to give you our top 5 steps.

Credit Help

Credit Fix step #1.

Know what’s on your credit:

Before you can take the right steps to improve your credit it’s important to know what’s actually being reported on all three of your credit reports. To accomplish this you must first access a copy of your credit reports from all three credit bureaus. We suggest using annualcreditreport.com. Annualcreditreport.com is a free resource that is provided to you by the credit bureaus so that you may check the information listed on all three credit reports once every 12 months. There are also other ways to check your credit such as a monthly monitoring service or purchasing your credit report directly from the credit bureaus; note that these monitoring services usually charge a fee.

Credit Fix step #2.

Verification:

After you review your credit report, verify that the information listed is correct. Credit reports are usually divided into sections. We suggest taking a few minutes to carefully review each section. For example there is a section for your personal information, collection accounts, public records, positive accounts, and inquiries. It is important to review each section and highlight any inaccuracies that you find. This especially includes the personal information section. Although this section may seem menial when compared to the rest of the sections listed on your credit report. The personal information section is often the root cause of larger issues like incorrect mergers. For instance if you have a common name there may be several variations of your name listed on your credit report. Because of the name variations on your credit report the credit bureaus may accidently merge accounts from those with similar names on your credit report, hence giving you someone else’s credit, whether good or bad. You can eliminate this by checking each section carefully for mistakes and accounts you don’t recognize. It’s also important to make sure that your personal information is listed correctly and there are either none or limited variations of your personal information being reported.

Credit Fix step #3.

Take the appropriate corrective actions:

If you do identify any inaccurate information on your credit report it’s very important that you take the correct actions to have the information updated to report accurately. At times this can be one of the more frustrating tasks when it comes to credit fixes. There are several actions that can be taken to correct the inaccurately reporting accounts on your credit report. One step can be contacting the original creditor. If the mistake is obvious then the original creditor should have no problem correcting the reporting of the account. Because they are the original creditors and they reported the inaccuracy to the credit bureaus in the first place they can clear it up a lot faster than you can. Another simple way you can have an inaccuracy fixed is by contacting the credit bureaus. The fastest way is to call the credit bureaus and speak to a real person instead of the automated system. It can be tough to get someone on the phone however it is most definitely worth the wait since they can actually fix the item while they have you on the line! The most common method is to dispute the inaccuracy online or via mail. There are many resources available to assist you in crafting a dispute to submit online or via mail. However things get tricky when you dispute inaccuracies using either the online or mail methods. If you have limited knowledge when it comes to the credit system it is advised that you use a more direct method such as calling the credit bureaus. If you list the inaccuracy incorrectly or fail to properly list your dispute when using either the online or mailing methods the credit bureaus can flag the dispute as frivolous and legally refuse to investigate the item again.

Credit Improvement

Credit Fix step #4.

Maintaining current accounts:

If you already have current credit obligations then it is imperative to properly maintain these accounts. This includes paying these accounts on time every month. If you fail to make payments on time every month on your current credit obligations then your credit scores will take a major hit for each month that you are behind, quickly dragging your credit scores down. If you have been paying on open credit obligations late, then it is suggested that you call and explain your situation to the creditor and set up a plan to bring those obligations current. If you feel that you will have a hard time making the payments for your monthly credit obligations then we suggest giving your creditors a call and working out an arrangement that will protect your credit rating. That one phone call to the creditors can save you a lot of time and headaches.

Credit Fix step #5.

Handling new and mixed credit:

It is important to maintain a mix of credit. The credit bureaus like to see that you can maintain different types of credit without any hiccups. These types of credit include revolving accounts, installment accounts, mortgages and etc. Your score depends on you maintaining these accounts by paying them on time and keeping low to no balances. It’s also important to open new accounts; however it is advised that you do so wisely. New accounts can initially hurt your credit scores however as you pay them on time your credit score will reflect positively.

These are only a few credit fix tips that can help you out but depending on your situation there are many more available. If you find that you do not have the time to devote to your improving your credit then it is advised that you contact a credit professional or professional credit improvement company. While there are many companies that provide credit improvement services we recommend Family 1st Financial. They take a holistic approach to credit improvement, they have certified FICO Professionals on staff that thoroughly understand the inn’s and out’s of credit improvement and they can effectively implement the needed credit fixes. More information about them can be found at www.family1st-financial.com   

 

Credit Fix