There are THREE CHOICES to improve credit reports, identity theft, and consumer information:
DO IT YOURSELF
HIRE A REGULAR NON-LAW FIRM Credit Repair Company
HIRE AN ATTORNEY
Make an Immediate Impact: Do it Yourself
Review your credit reports for accuracy.
Your report may contain inaccurate information or might be missing important credit information. Contact the credit reporting agency in writing immediately to fix any errors. Be sure to provide complete and necessary information so that the agency can complete an investigation and repair any inaccuracies.
TIP: The credit reporting agency is required to investigate and respond to your dispute, usually within a 30-day period according to amount of your business line of credit you need. If a correction is made, the creditor must notify all three credit reporting agencies so their files can be changed.
To get started, you can get a copy of your credit reports from Annual Credit Report.
Set up automatic payment reminders.
Paying your bills on time is the most important factor in figuring up your credit score. Setting automatic deductions from your banking account for house and automobile payments, utilities, and credit cards will help you make timely payments. If auto payments aren’t possible, set payment reminders on your calendar or budgeting software.
TIP: Make sure to coordinate your future income deposit dates with your automatic withdraws before you set up auto payments. For example, if you are paid on the 1st and 15th of each month, set the automatic payments to be disbursed on the 4th, 5th, 6th, 17th, 18th, and 19th of each month.
Stop using credit cards!
This is usually the most expensive of debt type, the easiest to use without thinking, and the source of aggressive collection efforts. Keeping zero or low balances on your credit cards will save money and increase your peace of mind. Use cash or your checking account debit card for irregular purchases, keeping your credit cards locked up securely at home.
TIP: Don’t cancel your credit cards. The debts are not canceled, and your credit report will suffer because there’s less available credit as you pay off the debt. If you decide that some credit cards must be canceled, choose the ones with the shortest history.
Changing Your Money Habits
Commit to improving your credit score.
Fixing your poor credit is tough work that will require commitment. Distinguish between “wants” and “needs.” Ask yourself what you truly can and can’t live without. Learn to wait on purchasing wants or luxuries until you have extra cash that is not needed elsewhere.
TIP: If you have a partner or family, be sure to involve them in the process of fixing your credit. They were probably part of the problem of running up too much debt to handle, and they need to be part of the solution.
Set a budget and stick to it.
A budget is simply a plan to direct parts of your income to specific expenses. Budgets can be simple or detailed. Determine how much you can comfortably set aside for savings and how much you can reasonably afford to pay of your debts.
TIP: Try to lower your fixed expenses as much as possible so you can put more money towards fixing your credit. For example, a reasonable budget might break down like this: 50% towards fixed costs (like housing, utilities, car payments, etc.), 20% towards financial goals (savings, pay down debt, retirement fund), and 30% towards flexible spending (groceries, gas, shopping, entertainment).
Consolidate your high-expense debts.
Credit card and short term debt can be very expensive. If your problems come from credit card or trade debt and you have a home or a whole life insurance policy, you might consider borrowing money on the policy or a second mortgage on your home. Then, pay off the more expensive short-term debts.
The risk in debt consolidation strategies is that you don’t change your old buying habits and you build new credit balances, multiplying overall debt.
TIP: If you consolidate your debts, you must change your old habits to avoid a repetition of your recent situation.
If the DIY tips don’t work and you’re still battling bad credit reports, it’s possible that you may have something negative or incorrect on your personal credit report.
Late payments, loan defaults, medical bills, high credit card balances and court judgments may have damaged your credit over time. It’s important to repair your credit and ensure that correct information is included on your credit report.
Any inaccuracies on your report reflect badly upon you, especially when you wish to make a major purchase. While it’s possible to repair your credit history on your own, it can sometimes be preferable to work with a credit repair service in order to clean up your credit record.
At BitX Funding, we have strategic partnerships that can clean up inaccuracies on your personal credit report.
By fixing these inaccuracies BitX Funding can provide higher loan approvals, lower interest rates and better terms.
Do you need help to repair your credit?