How To Fix My Credit

As the economy improves you are probaly like many of us and , you are asking the question, “how to fix my credit.”

A few years ago when the economy was spiraling into the toilet and families were losing their homes and jobs were in peril, the question of how to fix credit wasn’t on anybody’s mind. In fact, the opposite was true as people went into survival mode with their finances.

If you are still in this survivors expectation, then you aren’t ready to begin the journey to credit report repair yet. In fact, bad credit is something you are willing to live with, if it comes down to paying the credit card bill or buying the necessities . This article is for people who can now see some hope . There is a light out there somewhere and you are either employed or have hopes of such . You have some cash flow now and you realize that if you focus and clean up credit report, then your monthly struggle will not be too hard .

Look at a elementary financial calculation. If you have bad credit , your credit card interest rate is most likely 29% . A more typical rate of ten percent would be for those with better credit scores . Take a hypothetical credit card balance of $7500, which is not out of line with many families today and calculate the monthly payments.

Bad credit minimum monthly payments will be $331 per month and at that rate it will take 206 months to pay off the entire balance. When you are done with this account you will have paid $16,395.

Good credit minimum monthly payments on the same balance will be $212 per month and you will pay a minimum amount for 193 months. This is over one year earlier, but the astonishing evidence of what good credit will do for you is in the total payments. Good credit total payments will be $10,543. That remainder is near $6,000 for good credit.

Are you asking yourself, is it worth it to increase my credit score?” Look at it from another view . We are talking about one account. Only one credit card with high interest rates. Consider that most families have several credit cards. Think of five credit cards with similiar balances and interest rates would equal about $30,000. Like you and everyone you know ,  I could do a lot with $30,000.

How To Fix Credit

You begin the process to clean up credit report by getting the latest versions of your credit reports from the major credit reporting agencies. Experian, Equifax and Transunion. You may qualify for  a free credit report if you haven’t requested one within the past year , but you aren’t going to get credit scores for free. Unless you use an online credit software, like AVAIL, you will have to pay for your credit scores. Either way, you need them.

Credit Report Repair

You will have to be very thorough with your credit reports. Read through them carefully and highlight anything that appears to be wrong . If you think there are reporting errors, but are not sure, make a note to dispute the account anyway. Remember , a credit reporting agency has the responsibility to vefiry each account you dispute. It is their job to insure these accounts are correct .

Increase My Credit Score

The dispute process takes a while , sometimes up to 6 months, but with dilligent and thorough attention, you will see a gradual increase in your credit scores.

Online Credit Repair

There are several pretenders to the throne when it comes to online credit analysis and solutions. I used AVAIL, which for $199, I think is the best. In addition to increasing my credit scores over 200 points, this software will write dispute letters as well as spot the difficult to find  credit reporting errors.