Credit Repair Options

More than 68 million people in the world have credit issues, according to Vantage. Many of those people have no idea how to help themselves to get back on track. If you are currently having problems with your score or profile, there are some things that you can do to help get them out of the abyss.

 1. Pay Some Debts

The first thing that you should do if you want to repair your credit is grab a copy of your credit report. It’s your first line of defense. You’re entitled to at least one cost-free report per year from all three bureaus. You can go to a site like annualcreditreport.com and request your free reports in one place.

Once you have your credit records in front of you, you will be able to see the whole picture of everything that you need to pay. The first one of your options is to pay any debts that look easy for you to settle. Before you pay anything, you should call the creditor and see if the company will agree to remove the negative account from your credit report if you pay it. Many people do not do this, and then they are shocked when they find out that the credit bureau did not remove the item. Unfortunately, the law does not obligate them to fail to report a poor history of payments. Make sure you get a written legally binding statement from the creditor stating that it will remove the debt from your record as long as you pay the entire amount.

2. Dispute Questionable Items

A credit report dispute is another one of the options that you have for repairing your credit. If you see anything on your report that may not be yours, you can open a dispute on the entire account. The credit bureaus are obligated to investigate the issue and then let you know their findings within 30 days. If it turns out in your favor, the credit bureau will have to remove the item. One removal can lift your credit score by 20 or more points.

3. Get on a Debt Management Plan

A debt management plan can help your credit score immensely if you’re a person who has sort of a disorganized lifestyle. A third-party company usually looks at your profile and helps you to consolidate your bill into one monthly payment. That consolidation usually comes after a bout of negotiations with your creditors. The debt management counselor then takes your monthly payment and pays all of your creditors for you each month so that you don’t have to stress about it. It may take a few years to see massive results from such a method, but eventually, you will see them if you make your payments on time.

4. Take Some Debt Settlements

Debt settlements may be one of the options that you prefer. They are agreements that you make with the creditors to pay one lump sum for the debt. Usually, the creditors are willing to take a portion of what you owe for the debt. You can make a deal with them to remove your negative account once you pay the agreed-upon amount. Make sure that you settle this before you make the payment and that you receive the agreement in writing.

5. Contact a Credit Repair Company

Finally, one of the best credit repair options available is to contact a company that specializes in helping with their customers’ credit. Lexington Law is the name of one such company. Credit Saint and The Credit People are two other companies that may help.These specialists know the most updated credit laws, and they can use tactics that sometimes scare creditors straight when they are trying to damage consumers. They can challenge the validity of an account or the accuracy of such a report. You can choose several recovery tracks, as well. This kind of company usually charges a monthly fee for membership, and they continue to check your credit report and fight for you as long as you stay a member.

Now you know of a few good ways that you can improve your credit score. There is hope for a full recovery. Try a few of the options mentioned above and see how they work for you.