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How Do I Fix Bad Credit?

By Derek Brown
Published: Thursday, June 3rd, 2010

Yes, it is possible to fix a bad credit report. Of course, fixing bad credit does not mean entirely eliminating the consequences corresponding to bad credit or totally reversing the situation. You would still have to deal with them. For instance, you may have extra difficulty signing up for loans, and your bad credit in your history may stay unforgotten for some time.

Still, there is reason to be optimistic. It is still possible to salvage the situation and your reputation. As you do the following, keep in mind that your aim is to make a positive impression on your creditors. Therefore, you would want to do things that would reflect positively on your account. It would also pay to remember that fixing bad credits would entail a long period of time. Depending on how bad your situation is, the process may take approximately a year. For instance, a person having bankruptcies and judgments would have to face a longer time processing his reports than someone having only minor bankruptcies.

The very first and important thing you must do is to review your accounts for any discrepancies and factual errors that may exist. If such errors do exist, immediately contact your credit agencies and bureaus and settle any disputes with them. By settling things and confronting the agencies first, you may potentially decrease your debts or penalties to as much as 20%.

Also, always settle such disputes in person, and not online. You would not be able to get any decrease in your penalties if you do it online. The disadvantages of not doing it online are also not being able to have documentation of the process. You would also not be able to refer to specific information in your report that would be automatically overlooked by the agency if you try settling it online.

Never forget to document the entire process. Keep any reports, bills, account details, letters (it is advisable to have receiving copies or return receipts of all your letters), and take note of the people you speak to. Having all these information would be handy when dealing with the credit bureaus. It would also minimize any other inconveniences that might arise from not having accurate information. Take note of the 30-day protocol of credit bureaus: upon sending the details about an item/s to the bureaus and they have not gotten back to you within 30 days, they have to remove that item.

Finally, be patient. The process may indeed seem tedious, but there is no cause to panic and be frantic over the details.

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