When it comes to bad credit, there is one thing every consumer must know: there is no instant way to repair or fix bad credit.
Seeking the help of a legal and reputable credit counseling agency may be necessary if you really don’t know what to do.
But the way to repairing bad credit are really steps that you can also do on your own. Consider the following advice on how you can take charge of the situation yourself.
Obtain a copy of your credit report. The Fair Credit Reporting Act (FCRA) entitles all consumers in the US to get a free copy of their credit report once a year through its Free Annual Credit Report Program. You may also get an instant access to your credit report online from all the three major credit bureaus:
Check the accuracy of all information in your credit report. Make sure that all the details in your credit report are true and accurate. If you find any incorrect detail, contact your creditor through phone and advice them about it. Send out a letter of dispute to your creditor via registered mail as well. Make sure that your dispute letter explains clearly the misinformation you found in your credit report. Don’t use sample dispute letters that you find online. It would be better to create one that contains your very own explanation on the issue.
Talk to your creditors. If your problem with bad credit is due to your missed payments or inability to pay your debts, it is very important to meet with your creditors. You can personally try to make a negotiation on your own with regards to the payment of your debts. Most creditors would be willing to make some adjustments on your payment terms if you show your willingness to keep up with your debts.
It is important to be honest about your current financial situation. What is the major reason why you weren’t able to pay on time? Perhaps it is due to a loss of job, an illness, or an emergency situation. Let your creditor know that you are doing your best in order to avoid defaulting on your debts. Remember to speak politely and amiably when negotiating with your creditors.
Be ready to make some compromises. Don’t expect to repair your debts over night. It would take a lot of hard work and effective budgeting on your part to regain good credit. Your family members can be a tremendous help and support in your efforts to rebuild your credit. Never take for granted even the smallest savings you can get out of your daily expenses. When you put it all altogether, you’ll see how much it can help you in paying some of your bills.
Watch out for agencies offering instant credit fix. No matter how tempting their promises are, always remember that no agency can erase your bad credit or fix your credit report in an instant. If you really want to get assistance, it is best to hire a legal attorney who can properly advice on the most efficient steps on rebuilding your credit.
Also, don’t forget that lawyers also have different expertise so make sure that you choose an attorney that specializes on credit issues. Just as you need to be careful about choosing a credit counseling agency, you should also take the time in researching the background of the attorney you’re considering. Do check out the for reputable and dependable legal services.