Credit Repair

Today, in an effort to curb the difficulties encountered by people with regards to finances, many companies and agencies have created programs and promos that allow people with bad credit to still have a chance. There are now, for example, bad credit mortgage refinance loan opportunities almost everywhere. Regardless, however, bad credit shouldn’t be taken lightly, as this can cause much more problems for the person in the future, especially when it comes to finances. As best as possible, it is important to fix bad credit, and using these steps, you won’t need to hire costly credit repair companies to do the job.

First, obtain all your credit reports. There are three credit bureaus that you can get reports from, and a tip to know is that once per year, these reports are actually free, and can be obtained quickly and easily without paying a single cent. It is important to get all three because some creditors and lenders only report to one bureau, and as such may not be present at the other bureau’s records. And because the bureaus don’t really share their information, the best chance at getting a full credit report is by getting reports from all 3 bureaus.

Once these reports are obtained, quickly scour through them and find all the possible inconsistencies and incorrect information. Mark them, take note, and file a complaint to the credit bureau to dispute the incorrect information. Any wrong info can negatively impact the credit score, and should be taken care of immediately.

Next, take note of the past due accounts, maxed out credit cards, and any other accounts that have expired or need to be paid. These need to be settled as soon as possible, usually by paying them off as best as one can. By lowering any debt, the credit score can increase, and the more debt is settled, the more the credit score becomes better.

Following these simple steps will soon lead to better credit!

Find other financial articles at MySanDiegoMortgage.com.

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8 Steps to Improve Your Credit Score

Ouch. It happened, the dreaded nightmare that you have been afraid of for years. You were trying to apply for a mortgage, lease a car, or even just buy a cell phone.  Yet you were declined because of your credit score. You may feel like the weight of the world is on your shoulders, but don’t give up. There are solutions that can help you get back on the right track. Before you know it, you can erase the bad credit, and start over with even better credit, as well as happier disposition in life. Where to start? Read on for simple tips to your problem.

1. When you first find out that you have damaged credit, apply for your credit report. This is the time to sit down, and read through everything. Get up to date on your credit, and see where you went wrong. If you need help with this, meet with a financial adviser so they can explain the details to you.

2. Clean up your report. If you see areas that don’t look right, then you have the right to call and ask what is up. If something looks fishy, or even remotely incorrect make sure you correct those mistakes now. Believe it or not, this happens on a regular basis.

3. Put your credit cards in a drawer, and don’t take them out until this mess is cleared up. Nothing will hurt your credit more than to continue racking up your debt. This is the time to resort to cash only mode. Will it take some adjusting? Yes, but it will benefit you in the long run.

4. Whatever you do, do not close your credit cards. Many people don’t understand that closing your credit cards down will actually hurt your credit in the long run. If nothing else, keep them open, but lock the card away where you won’t be tempted to use it.

5. Take the necessary steps to begin paying your cards off again. One simple way to get ahead without overwhelming yourself is to pay a few dollars over the balance every single month. Better yet, figure out if you can earn some extra money to pay the cards off for good. Host a yard sale, put items on e-bay, or even pick up a part time job. Just do whatever it takes to get your head above the water again.

6. If you are still receiving credit card application, make it habit to cut them up right away. There is nothing worse that creating new accounts, and new debt. Instead of snowballing your debt, avoid it at all costs.

7. Get help. Honestly, find a mentor, or financial adviser that can help you get control of your bad debt. The goal here is to find someone who will keep you accountable. They can check up on you once or twice a month to see how you are doing.

8. Wait. Honestly, waiting is the hardest part of getting out of a scrape with bad credit. Start out with small steps, and work towards a debt free future. By doing so, you will be able to gain control of the situation, and learn a great lesson on debt. It will pay off.

Perhaps this information may feel a bit intimidating at first, but as you begin working towards better credit, it will become natural to you. And as you see the progress, you will feel much more secure in your financial future.

This is a guest post from Peter Sanchez, a new contributor at CreditDonkey. Visit CreditDonkey.com to find, compare and apply for a credit card. Gain insight with credit card advice and tips.  Share your credit tips with Peter.

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