Poor credit leads to missed opportunities. It can throw a big tug in your financial life. For example, once you’ve got bad credit, you will have lesser chances of approval if you want to get a loan. That is because lenders see you as a risk, and most will not take the risk of approving your loan application. However, don’t lose hope. There are ways you can do to clear out your credit issues and improve your credit score.
How to Repair Credit History Yourself?
Here’s good news for you. Seeking assistance from Credit Repair Company Toronto is not always an option. Why? It’s because you can also do it on your own. We call that Do-It-Yourself or DIY Credit Repair. Instead of getting a credit repair service, you will be the one in-charge to fix your credit. That is if you have more time to do the process and don’t want to spend money hiring a pro to help you when you can do it alone.
So, here are four steps:
Step 1: Assess Your Credit State
The first thing to do is to assess your credit state. Check your credit reports and ratings before taking action to improve your credit. It is important to know why your credit scores dropped in the first place. You probably have clear ideas of what happened but it’s best to take a comprehensive look at your financial condition. It also offers a valuable opportunity to recognize and refute incorrect information that might harm your ratings.
Here are ideas on how to assess your credit situation.
1.1. Check your credit scores
You must check your credit scores for each of your reports. You can take a look at your score by using a credit card. If you do not have one, then you may sign up to any available online service that can grant you access to see your credit score.
1.2. Examine your credit reports
Under the federal law, you are given one free credit report every year from each of the major credit bureaus: Experian, Equifax and TransUnion. Your credit report contains details of your credit transactions which you can easily track what goes wrong in your record. You may find the exact problem why you’ve got poor credit score. On the report, there may be errors, misinformation and other factors affecting your credit. You can create a list of the negative information including overdue payments, misinformation, collection accounts, and others.
1.3. Create an action plan:
It is best to create an action plan once you’ve figured out what goes wrong with your report. Through this, you will know your next steps in fixing your credit.
Step 2: Dispute Incorrect Information
If you discover an error while digging through your credit report, then dispute them. Once you dispute inaccuracies, the credit bureaus will do an investigation. If proven to have errors, then they will be deleted from your credit report. Remember, all information on your credit report must be accurate. As a result, your credit score will increase.
Disputing any item on your credit report can be done easily. You need to start determining which information is not accurate. Afterward, identify which credit bureau is reporting the errors. Then, do the following steps:
2.1. Send a 609 dispute letter to the right credit bureau.
It should be through a certified mail. This type of letter is usually advertised as a hidden credit repair or legal loophole that requires credit reporting agencies to delete some negative information found on your credit reports.
2.2 Wait for a reply.
The process could take one month or more. After the review, the bureau will delete the incorrect information from your credit report unless if it can’t be verified.
2.3 If your dispute didn’t reach the resolution you were hoping for, then you have other options.
You can follow up with the bureau, contact the creditor who provided the data, make a complaint to the Consumer Financial Protection Bureau, or talk to a consumer protection lawyer as needed in the situation.
Step 3: Pay Your Debt
One of the toughest yet most significant elements to fix your credit is to pay down all your debts. Debt is considered a serious threat to your financial security because it prevents you from making the most of your money. Being trapped in a debt ties up your money and you can’t spend on things you want to enjoy.
Over time, the pressure of paying off your debts increases and that should not be taken lightly. On the other hand, bad debt such as the credit card debt burdens you with the interest rates while nothing increases in your income. As a result, you become more dependent on borrowing money to get through the payment period, and locking you into an endless debt cycle. So, if you want to fix your credit record and improve your score, pay your debts and your other credit balances.
Step 4: Practice Responsible Credit Habits
After paying off your debts and other credit balances, it’s best to take some time to educate yourself on proper financial management to never experience the same credit dilemma again. Practice more responsible credit habits and save yourself from the burden of debts after debts. Credit is not bad as long as you use it wisely. But if you fail to manage it well, then that will lead to a more serious financial crisis for you. To prevent it from happening, here are six different ways you can do:
- Pay Your Bills on Time
- Keep Your Credit Card Balances Low
- Carry Credit Card Balances Responsibly
- Don’t Borrow More Than You Can Afford
- Check Your Credit Reports Every Year
There you have it! These four steps are essential to help you improve your credit score. Just follow it and see the results for yourself. If you don’t want to seek help from any Credit Restoration Company Canada, then follow the steps and see the results for yourself. However, remember that negative items in your credit report will remain for about 7-10 years.
There’s no fastest way to erase them. So, you need to wait until all errors and negative items are removed. And while waiting, do use your credit wisely and take action on the errors on your credit report when you see one. The key is to be patient and stick to your strategies. Through being responsible, even those with the worst scores can qualify for favorable loans and better credit cards.
If you’re new to credit repair and want some assistance, then do not hesitate to contact a Credit Repair Company Toronto. You can rely on Credit Repair Now that has a team of expert brokers who are willing to help you out. Just set an appointment with them by sending an email at [email protected] and contract their number +1 647-373-9651. Credit Repair Now is at your service anytime and we cannot wait to have you on board.