Steps to Repair your Credit on your own

When debt becomes overwhelming, it takes a toll on every aspect of life. It affects how you mentally, physically, and emotionally. Accumulating too much debt not only keeps your from fulfilling your wants, but it can also make it more difficult to acquire your needs. Even improving your livelihood becomes harder, as it can keep you from owning a home, getting a promotion with your current employer, or even getting a new job. With all the advertisements floating around promising fast credit report repair, your first instinct may be to take advantage of these opportunities. Two words of advice before you do: time repairs credit, so no one can help you repair it fast, and, you can probably repair your credit report yourself.

To get started with repairing your credit, you will need a copy of your credit report… or three copies actually. You will need a copy from Equifax, Experian, and TransUnion. The reason for getting a copy from each credit reporting bureau is that all three credit reports may show different information, ranging from varying balances to varying accounts. You will need to compare the three to be sure that all the information they display is accurate. If you find any inaccuracies on any of the credit reports, each bureau allows you to dispute the inaccurate information. If after reviewing the dispute account the bureau deems the inaccuracy valid, it will then remove the account from your credit report.

After getting the inaccuracies corrected on your credit report, your next step will be to take care of your accurate past due accounts. These cause the most damage to your overall credit score. Pay off any closed or charged-off accounts. Not having those balances hang over your head will provide you with great relief. Once you get those closed account balances paid in full, you can focus your funds on keeping your open accounts current.

Another attribute of your credit report you will have to attack will be those credit accounts that have balances which are 90% or above of their credit limits. Using this much of your available credit, referred to as credit utilization, causes almost as much damage to your credit score as having charged-off accounts with balances on your credit report. It is imperative that you keep your balances low on your credit cards as opposed to using the entire credit limit.

Once you get inaccuracies removed from your credit report and get balances paid down or paid off, your credit score will start to reflect your efforts. For more positive impact on your credit score, it’s time to consider obtaining new credit. You will be eligible for more credit offers as your credit score rises and now you will want to take advantage of one or two of these offers. Don’t go overboard with applying for new credit because you just may get your wish. You may also end up rereading this article again to help you repair your credit a second time. Be responsible with your new credit and use it wisely.

Credit repair requires time, patience, and diligence. With hard work and discipline, you will be able to return your credit score to respectable levels. If credit repair still seems like a daunting task, seek some assistance from a reputable credit counselor. They can advise you on how to set up a budget that may help you to accomplish your credit repair goals. No matter what, keep telling yourself that you can climb out of the hole and eventually you will.