Can you fix bad credit on your own?
Do you want to fix bad credit score on your own? Well, you can do it on your own and all you have to do is implement a few things. If there is an overdue student loan, high credit card balance, and collections account then it means you have below-average credit and a low credit score needs improvement. It is because poor credit can cause many challenges when it comes to getting approval for house loans, credit card, personal loan, and much more.
You can take out a mortgage or some other kind of loan if you have a low credit score but the interest rate will be very high. However, if you have a high credit rating the getting a loan will be easy and the interest rate will also below. Why pay an unnecessary amount of interest rate when you can fix bad credit score on your own and even if you are not able to do so you can depend on a credit repair agency to lend you a helping hand. So, let’s check a few steps to build better credit.
- Know your status: If you thinking that I need to fix my credit on my own then before you begin with the credit repair process, you must get the copies of your full credit reports. So, you have to contact the three credit bureaus and get the copies. They offer free copy once a year and make use of free credit score tracking apps as well to understand your status. The credit score range is 300 to 850 and good credit is something above 700.
- Dispute the errors: Another thing that you may think is I need to fix my credit and there are errors in the report which should be disputed, but how? The next step is to check for inaccuracies in the report. Sometimes bad credit is not your fault and it is because of inaccurate information on the credit reports which is quite common. Even if there are slight errors, you should not let them go and get it cleaned as soon as possible. If you think there are many errors and you don’t have the time to handle them then it is better to contact the credit repair agency who will work on your behalf and dispute the errors with the credit bureaus. Review your name, address, social security number, outstanding debts, purchases, etc. Now highlight the errors so it is easy to dispute.
- Proof for errors: The proof for errors is a must and you have to gather all the information as the backup support like a bank account statement and make a copy of it. The credit bureaus will not do anything without proof. Now the question is can you fix bad credit on your own if you do not know how to deal with the bureaus? It is challenging if you cannot write to a specific credit reporting agency for the errors. You will need the help of a credit repair agency else you can do it on your own if you are confident to dispute the errors on your own. You have to explain the mistake and add a copy of the highlighted report with the documentation. Now disputes can be submitted online and it takes 30 to 45 days to settle a dispute.
- Take care of your budget: Once you have dealt with the errors it is vital to ensure that you do not spend more than what you cannot afford. It is because even if you taking the help of a credit repair agency or dealing with the disputes on your own you still have you pay all your bills on time, avoid applying for credit and pay all the debts. You need a budget. To begin with, you have to review the tax returns and see how much money you are taking home in a year. Estimate monthly bills and take a look at your spending habits. You have to manage everything properly and systematically.
Conclusion: So, if you thinking I need to fix my credit on my own then you have to be prompt and review your credit reports. Check where you stand and dispute the errors. At the same time, you also have to budget things so you do not overspend and take care of all the present bills as well. If at any point you feel that you have no idea how to dispute errors or you do not have the time to execute things on your own then taking help from a credit repair agency like ASAP Credit Solutions will be a better decision at the end of the day.