| Are you considering using a credit repair specialist? Perhaps you have been turned down for new credit. Well you don't actually need a specialist - you can repair your own credit.
The first thing you need to do is find out what the problems are. Get a copy of your financial records from all three of the credit bureaus and see what information is held on file. Is it accurate? There are often mistakes on file and these can be rectified by contacting the individual companies. You only need to contact the bureau if the finance companies refuse to correct the errors. The bureau will require written proof of the mistake and copies of all correspondence regarding the case.
If there are no mistakes and your credit record has been affected by poor financial management, now is the time to start sorting it out. If you have existing facilities you need to contact each individual creditor and make a new arrangement to repay your debts or else offer a lump sum settlement to close your accounts.
If you have old accounts on record that have been cleared in full but not closed, you need to sort this out. One factor that influences your score is the number of open facilities available to you and these dormant accounts may count against you.
Also be very careful about applying for new lending facilities. Numerous applications will count against you as it will appear that you are desperately seeking new finance. Always check your records first, make sure you have completed the application form accurately before applying for new borrowing to increase your chance of success.
Your new lender will not just look at your credit history. He will also look at how long you have lived in your current address, been in your job, qualifications and the number and type of dependants you have.
You should then apply for a secured credit card. This type of facility requires you to lodge the cash equivalent to your limit with the institution. But you can use the card in the normal way and every month when you repay the card in full, your credit record will improve. But you must make sure that the company makes reports to the bureaus as not all do. You also need to be careful that you do not have to take out expensive insurance cover and watch the annual fees as they vary considerably from one lender to another.
It is steps like these that a credit repair specialist will suggest you take but will charge you a fee for giving you advice. You need all the cash you can get in order to repay your existing debts and get a handle on your finances. One last tip is to open a savings account and begin a habit of saving regularly as this will also help your case. It doesn't matter if it is only a small amount every month. What counts more is that it is regular and consistent. |