Expert Tips on How To Rebuild Credit Fast For Better Credit Score
Want to know how to rebuild credit fast? Well, you may be disappointed at first as there is no sure quick fix to building credit, but you can do it relatively fast, if you become more financially disciplined, manage your finances better and develop plan of repaying debts. Rebuilding credit score is possible but just like losing weight, it needs patience and strategy.
Important to note that fixing bad credit takes time. Any person or entity that promises quick fix in rebuilding credit is most probably a scam and out of touch with reality. Most of the quick fix efforts at building damaged credit tend to fail miserably. According to experts, the honest solution of how to rebuild credit fast is to manage financial affairs slowly and better, over time.
What do you need to do?
Having bad credit status is not condemnation for life. You can reorganize yourself and take steps to improve the credit score.
Have credit report reviewed by an expert:
Boosting credit score begins with critical examination of the credit report. Is the information in the report factual and correct? Are there any errors in the report? Is all the information in the credit report verifiable? These are important question that can only be answered after the report is examined by an expert. There are various credit repair companies which can do this.
If the report is found to have errors, the repair agency will lodge a claim with the credit reporting agencies or the lenders. If any information there is is not verifiable, such as a report from a business which has since been liquidated and which cannot be found via calls, the credit repair agency will also petition for its removal. The credit report will also let you know how much you are owed in credit, and the agencies which have reported you to the credit reference agencies.
Begin repaying the debts:
The best way to repair credit is to begin repaying the amount owed by the lenders. When you begin repaying the debts, the status of the information in the credit report in respect of that account changes from dormant to active. Begin think of how you can repay the debts. This may be for example through debt consolidation. Note however, that debt consolidation is not available to all. The concept of debt consolidation simply means getting a loan to pay off the other smaller loans. After the debt consolation, you will have one instalment to pay off the larger loan.
Sometimes, it is easier to pay off one large instalment than several smaller loans which need repayment at a different times of the month or year. Note that debt consolidation may be a cheaper or more expensive option depending on the rate of interest the loan is granted. Ensure you get proper advice on whether to consolidate the debt in a way that helps you better manage the finances and improve the credit score.
Set up payment reminders, pay on time:
Anything that you do towards repayment of debts will either improve or worsen the credit score. Set up payment reminders to ensure you do not delay in repaying the debts as and when they fall due. When you pay debts on time, the lenders will pass that positive information to the credit reporting agencies all the way to the credit report and it will cause an improvement of your credit score.
Work with credit management experts:
Avoid fast credit repair services which promise unrealistic results such as improved score within 30 days or few months. There are many forms of credit repair scams online. Work only with legit companies and device a way of improving credit score without violating the law. The top rated debt consolidation companies and credit repair companies will may not offer quick solution of how to repair bad credit but whatever they do will be good for you both in the short and long term financial standing.