Know what Credit Repair is

Do it Yourself guide on Credit Repair

Chapter 1 – Know what Credit Repair is

Credit repair is managing your Credit Report so that you have a good credibility when it comes to money matters. This might sound like a simple thing but what is a Credit Report? Well, it is a reference to how you pay back money to your lenders, like banks and other Financial Organisations.

You need to constantly monitor your credit reports but we all know that we are good payers, so why monitor it?

Well, it is a good question but what if the concerned organisation makes an erroneous report on your payment habits and history? To err is human but the adage, ‘better to be safe than sorry’ also makes a lot of sense! This is why you need to keep a regular check on your Credit Report and repair any errors that may occur. Let’s take a quick look at some Do It Yourself tips!

Chapter 2 –

DIY tips on Credit Repair

1.                  You can request a copy of your credit rating from credit reporting firms on an annual basis. This is good enough but if you are a perfectionist then you can also ask for a quarterly report so that you can nip off any errors at the bud. Your credit report is a tool that various firms use when you approach them for a loan or any other lending activity.

2.                Payments that are missed are a huge No-No when it comes to your financial credibility. Be regular on your repayments and also report any repayment that is not entered in the statement.

3.                If you are planning to close out on some of the multiple accounts that you have, then it will be wise to retain old accounts that boost your credibility.

4.                Monitor your credit by not going over the 30% benchmark of your credit limit.

5.                 If you find any erroneous statement in your Credit Report, you need to report it at once; this is a free of charge service and one that you need to use.

6.                It is also a good idea to own multiple accounts and link them to your credits. A loan repayment linked to a regular account that takes care of the EMI sends out a report that is good enough to know how to manage your money.

7.                 Check your Credit Report and make sure that if there is any new credit it is availed of your credit card. This may increase your credit risk at first (the lower the credit the safer you are) but in the long run, provided you make regular repayments, it will show how dependable you are on making repayments, which gives you a good rating.