The Dos and Don’ts of Credit Repair

If your credit score is holding you back, get started on a credit repair plan now.

If your credit score is holding you back, get started on a credit repair plan now.

Looking for ways to improve an unfavorable credit score? Look no further! Our handy credit repair guide will help you get on the right track to improving your credit score.

Do: Determine your actual credit score
If a recent credit application of yours has been denied, find out why. Each of the three major credit reporting agencies are required to provide you with a complimentary copy of your credit report once a year, upon request. To order yours, visit annualcreditreport.com. You are also entitled to a copy if an adverse action like this happens—as long as you request it within 60 days of the notice.

Do: Review your report and dispute errors
If you spot inaccurate information on your credit report, dispute it in writing. Clearly identify every item you are disputing and the reasoning. Include copies of documents that support your stance and ask that the errors be corrected. Send it by certified mail and keep a personal copy of your entire letter for your own records. You’ll also want to dispute the charge with your actual creditor.

Don’t: Expect quick fixes
There’s no “quick fix” for bad credit. If a credit repair company promises to increase your score by 100 points in less than a month, don’t believe it. There are legitimate credit repair companies, but there’s nothing they can do for you that you can’t do on your own.

Do: Take steps toward fixing your credit
If you’ve determined that your credit report is accurate, take a careful look at your habits that are helping generate your unfavorable credit score.

If you’re consistently late with credit card payments, consider setting up automatic bill-pay so you’re never late. You can set up free bill pay with Partner Colorado to make sure your bills get paid on time. If your debt isn’t going anywhere, rethink your spending habits. Trim your expenses wherever possible and never shop with credit cards.

If your debt has become unmanageable, use our debt calculator to determine the best strategy to lower your debt. Lots of open credit is considered unfavorable by creditors, so close as many accounts as you open, but leave your oldest one open. You can also consider contacting creditors to work out a more reasonable payment plan. Finally, find ways to increase your income, using all extra cash exclusively for paying down debt.

Don’t: Expect to see improvement immediately
It may take upward of 30 days or more for your account to be updated and your score to improve.

Do: Ask us for help
Here at Partner Colorado, we’re all about helping you manage your finances. If you’re in financial trouble of any kind, stop by today and speak with a representative so we can try and help you get on the right path to financial success.

By following this list of dos and don’ts, you’ll be well on your way to a better credit score. You can view your FICO® Credit Score through our Mobile Banking app. Visit our website for more details.

 

SOURCES:

https://www.credit.com/credit-repair/

https://www.consumer.ftc.gov/articles/0058-credit-repair-how-help-yourself

http://www.experian.com/blogs/ask-experian/credit-education/improving-credit/credit-repair/