Call For Credit Repair Today 1-888-585-3999

Repair Bad Credit

1) Get your credit report and thoroughly review it.
Make sure the report includes all three credit bureaus: Equifax, Experian and TransUnion. Each bureau’s information will often be different because creditors only have to report to the bureau they subscribe to.

2) Challenge any discrepancies in your credit report.
Many reports will have some errors. If you find errors, complete a dispute form provided with the report. Or, you can print the credit report and circle the discrepancy. Include a letter that explains the mistake to the bureau and request that the error be deleted. Mail the paperwork to the bureau, with copies of any documents that support your claim. Regularly check to make sure the error was deleted and that it doesn’t reappear on your report.

3) Pay your credit cards down.
Typically, maxed-out credit cards have the greatest negative effect on credit scores. Your credit card health is determined by a percentage called “credit utilization.” Credit utilization is the amount you owe divided by your total available credit. For example, if you have four credit cards, each with a credit limit of $5,000, your total available credit is $20,000. If you owe $18,000 total on all four cards, your credit utilization is 90 percent. Experts say 30-percent credit utilization is healthiest. But your credit report will experience a significant, positive boost even if you pay down your credit cards to 50 percent.

4) Get rid of unneeded credit card accounts.
Most experts recommend having between two and four credit cards. Be careful, though, because closing out too many accounts can negatively affect your credit utilization as it lowers your available credit. Close out your newest accounts first so you don’t lose your longer credit history.

5) Be patient.
Improving your credit score will not happen overnight. But by devising a long-term plan, combining the above steps, it is very possible to get out from underneath the burden of bad credit.