You are finally on the way to financial stability.
You have got a good-paying job with steady benefits and a promising future. And, you’re ready to consider some more serious financial commitments.
The problem is, when you were not doing so well with your money, you had to use a few credit cards. Now, your credit score is shot and that just won’t do.
You are wondering how to repair credit on your own and how long it will take. Read on to learn more.
How to Repair Credit on Your Own
Whatever your timeline for repairing your credit score, there is only so fast you can fix it. Before you get started on credit repair yourself, there are a few things you need to consider.
Payment History
The factors affecting your credit score are dependent on your payment history. Based on the severity of your debt, your credit repair might take a few months or much longer to fix. Now, even if your repair will take longer, you do not have to turn to any outside credit repair services.
As time passes, bad information in your credit history affects you less. Missing payments are not as bad as payments so overdue they’ve gone to a collection agency. Any payments that went to collections need to be taken care of first, as these are worse for your credit score.
Your payment history, including paying off your existing debt, affects your credit score for up to seven years in the past. Assuming you are already paying off any outstanding debt, you also need to look at your utilization rate. This is simply the total of any credit card balances, divided by the total of all your credit card limits.
Credit Report
If you are not sure where your credit score currently stands, based on your payment history, this is where credit repair services are helpful to evaluate your score. Even after you have evaluated your score and considered your payment history, you are still probably wondering just how long it will take to rebuild your credit.
You can find all of this out in your credit report! Any legitimate website should offer you a free credit report, but when in doubt the Federal Trade Commission (FTC) has some great resources. Mind you, once you have your credit report, you might know how to check it for errors.
The Credit Agents have a great tool to evaluate your credit report, and it is free! So, after you have gotten your credit report, you need to check it for any errors to figure out what exactly needs repairing.
You will want to check for incorrect information, like accounts that are not yours, payments with the wrong pay dates, and so on. Before considering paying off any outstanding debts, you will want to take care of maxed-out accounts first.
If you find any incorrect information on your credit report, dispute it! You can do this through your credit card company, usually. After evaluating your credit report, you need to see what you can to do affect your credit score.
Paying Down Debt
As stated above, it is most important that you pay any collections amounts or other outstanding overdue balances.
Your next step is to bring your high account balances below your limit, ideally, 30% of your credit limit will affect your score. 10% is best, though.
Make sure your accounts are current. Even with steady pay, your income is not high enough to just go paying down all of your debt at once. Focus on accounts that are coming close to past due. On-time payments will not drop your score.
Then, you will want to take on bringing down those high balances. Follow this up with accounts already in collections.
Important Tips for DIY Credit Repair
Now that you have got a plan for paying down your debt, you are finally on the path for how to fix your credit score. Below are a few important details to think about after you have begun paying down your debt.
Save What You Can
Some accounts are in good standing, so do not put your money where it will hurt those accounts! Make your payments on time before you get ahead of paying down your debt.
Space Your Disputes Out
Assuming you have a lot of disputes to make, do not make them all at once. Whenever you do make a dispute, put it in writing! This will hold any credit report scammers accountable. Your disputes hold more weight when spaced out.
Think Before You Close
If any of your accounts have a balance, closing a credit account can hurt your score. Only close accounts that are paid out, without any outstanding balances.
Don’t Lose Hope
Going through your past financial mistakes can be upsetting and kind of discouraging. Keep in mind, Rome wasn’t built overnight, and your credit debt will not be fixed overnight, either. Small steps are the key to success here.
Consider Consumer Credit Counseling
The Credit Agents offer great consumer credit counseling, at variable rates based on client needs. Creditors will have to deal with your financial counselors, even if they avoid you. Plus, credit counseling is great if you can not seem to follow your payment plan.
File for Bankruptcy Sooner
Now, bankruptcy is not an option for everyone. If it is your only way to get back on track, putting it off will only delay your rebuilding your credit and returning to normal.
The Next Steps
After considering looking at your payment history, evaluating your credit history, and making any possible disputes, you can repair credit on your own. With the helpful tips included on how to fix your credit yourself, you are on the path to financial stability and meeting your money goals.
If you need quality consumer credit counseling, make sure to turn to The Credit Agents. Better yet, make sure to check out all of their website for more than just credit repair help.
