Credit Repair: A Do-It-Yourself Approach

With total household debt in the USA reaching over $13 trillion this year, it’s no surprise that a whole host of firms offering credit repair services have sprung up. In essence, these companies offer to help consumers clear a bad credit rating ahead of loan applications. As USA Today reports, banks and specialist firms are these days very keen to offer credit repair as a way to create customer loyalty. Taking them up on the offer helps you to expedite the process, but there are ways you can aid the process yourself too. From proactively finding out information about your debts to putting a plan in place for future credit management, there are plenty of options available. Here are just some of the methods at your disposal.

Verify debts in advance

In the past, it was the case that paying off a debt collection order was actually sometimes counter-productive. That’s because many credit rating agencies treated paid-off collections the same as unpaid ones – but that’s now changed, and some firms now rank you more highly if you do pay it off. But before you jump into paying off all your debts right away, you need to make sure that you technically are still obliged to pay – as sometimes a debt can be lifted or changed, especially if time has elapsed. A recommended credit repair company will be able to advise on this, but you can also approach lenders yourself and ask them to double-check the remaining terms of the debt.

Act for the future

Once you’ve managed to sort out your credit rating, you’ll then need to consider making changes for the future to keep the healthy rating going. You should ensure that you only take on credit card debts that you know you’ll be able to pay off as soon as possible. And what’s more, you should re-negotiate and organize your household bills in such a way that they’re always paid off in full each month: that way, you’ll be able to prevent falling into debt by accident.

Having a good credit rating is essential for a whole host of financial goals. Whether you’re looking to get a mortgage or gain access to a more generous credit card, it’s possible that you’ll need to do a little bit of credit repair in order to achieve your ends. And from being strategic about repayments to ensuring you only pay what you owe, there are lots of ways you can work alongside your credit repair firm to achieve a healthy credit rating.