Credit repair refers to the fixing of one’s credit score with credit agencies. The credit repair guide is prudent always to monitor one’s credit reports and challenges any incorrect information. Individuals can request for their credit statement from credit bureaus. One is entitled to a credit report annually as per The Fair and Accurate Credit Transactions Act. In circumstances where one suspects fraudulent data is contained in their credit report, one can request a credit report which they are duly entitled. You can read about the credit repair guide based on this credit company review and testimonial.
Cautiously review the credit report
Given that one’s credit information comes from corporations whom you have accounts with. One needs to make sure the information is reported accurately thus auditing the report eliminates inaccuracies.
Information is presented in a credit report
Personal Documentation –name, addresses, social security number employment history.- Accounts Held- joint accounts, loan accounts.
- Public Records –Outlines financial commitments.
- Soft Credit Examinations -shows applications made by financiers or you.
- Consumer Report –A dispute report between you and your financier.
- Hard Credit Inquiries- Reveals new applied for credit or services.
Areas to note in the credit report
- Missed Payments
- Missed payments give bad credit scores especially mortgage payments. Talk to your lender and reconcile your records and their records.
Depth of credit
Old credit accounts are a verification of good credit management in the past (reflects good credit management for a significant amount of time). One may consider not closing old accounts.
Various credit accounts
Managing different credit accounts is an indicator of good credit management e.g. handling a car loan, mortgage and a credit card, wherein one case you control how much you spend and pay monthly and in another case you remit fixed monthly payments.
Latest credit accounts
New loans that have been taken up or credit card should appear on the credit report. They may, however, signal credit risk, but the credit mix and a steady history of payment is a sure way to improve one’s scored in due time.
Dispute inappropriate data
In the event of incorrect data, one needs to engage with the credit bureau which should amend the inaccurate information.
Expect a response within 30 days from the creditor
The credit bureau should rectify the negative results and notify you in 30 days. Then apply for a new credit report to ensure your report is updated. Purchase a credit score to see if your risk level has improved.