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Credit Education > Credit Repair > How to repair and improve your credit

How to repair and improve your credit

By Janet Lacey
Published: Friday, May 16th, 2014

You must have seen these kinds of advertisements on TV, in newspapers or in internet-
‘Do you have credit problem? We focus on credit repair’, or ‘With 100% guarantee, we will erase your bad credit loan.’ Or ‘Create a new credit identity’. You may get these messages in mail, email or through fliers. And they are of one and same kind- actual signs of scams. Better not to believe these claims as there is no quick solution to your credit problem. Your credit report may be improved legitimately, although it may take time and effort. But never ever go for these kinds of false claims.

Credit repair is an ever-growing problem that has a major impact on businesses as well as on consumers. Here are a few steps that will show how to rebuild and protect your credit cards:

  1. As a legal right, you can ask the company for an investigation into inaccurate statements, and that is free of cost. Every person is entitled to get free credit card report. You could have done some credit mistakes in the past, but you should not get punishment for what you did not do. Once you get your credit statement, you can identify the errors and try to get rid of the bad scores.
  2. Try to cover up any of the missed payments. If you are unable to catch-up on the payment schedule, you can consult any of the ‘non-profit credit counseling agencies’ to work on your behalf. They may help you to prepare a payment plan and you can work on credit repair.
  3. Payment history is a major factor to calculate the credit score. Make sure that your rent, utility payment and other bills are being paid in systematic order. You may consider the option of paying the bills through an automatic deduction system. If any time, you payment has been missed, you can request the company to remove the late payment charges from your account. The company may consider this request for the good relationship and customer satisfaction. Do not overdraw your account.
  4. You can make a positive ‘credit history’ by not taking any credit. If your bank permits you to start a ‘secured credit card’, you can deposit a certain amount of money in the bank that equals your credit limit. It is a ‘special saving account’ and the bank can take any missed payment from this account.
  5. Try to pay your credit amount as early as possible with a focus toward credit repair, as it will improve your credit history.

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