Why should you repair your credit?

Let me reassure you every credit report can be repaired. Some take longer than others and perhaps more back and forth with the creditors and the bureau but it can be repaired over time. No matter how bad you have damaged it, it can be repaired.

Repairing your credit is critical to saving your money but it may not be the only reason you will want to repair it. If you ever wanted to start your own business, having good credit gives you the security of knowing that you can borrow money whenever you want and at a rate that should satisfy your budget. Don’t wait till it is too late you should start as soon as possible…which I guess that is why you are here.

You can repair your credit alone, there are so many resources available online to help you however dealing with some creditors and debt collectors can be tricky especially when they know the law much better than you. I mean why take on the fuss when a professional can do it for you? The debt collectors want to find every way possible to get money from you so tricking you into paying an old debt that should have been written off will be top priority on their list and obviously on the bottom of yours. Unless you know your rights as a consumer you can be looped into making your credit worse rather than better.

Not every piece of information recorded on your report is accurate. The bureaus themselves are merely holders of information. They receive monthly reports with your identification and update your report. They have no say what the creditors report and unless you challenge it as being inaccurate it will remain there hurting you silently. This process involves writing carefully worded letters to your creditors to get inaccurate information removed, negotiate a settlement in return for deletion of negative information and in some cases starting a complaint process with the ombudsmen when there is no cooperation.

Everybody has a right to an accurate report, first you will need to figure out what you will need to dispute. Anything that is incomplete, inaccurate or entries that can’t be verified needs to be disputed. The dispute process can be complex with rules/laws attached to everything you say and do so this needs to be done quite carefully.   

Your report is split into 4 sections:

  • Your personal information
  • Your financial history of every credit account
  • Public records i.e Bankruptcy and CCJs
  • Any inquiries both soft and hard searches

The first step will be to decide what you need to repair, create a credit repair goal and a plan of how to get there.

Check out the Disputes 101 post to get some handy tips on repairing your credit.

You can do it!

Love ya xx