5 Ways to Pursue Effective Credit Repair in 2018

Banks Editorial Team · December 22, 2017

Improving your credit score is one the best possible things you could do for your financial planning, debt, and budgeting for the future.

A higher credit score can mean qualifying for lower interest rates and better terms, enabling you to borrow money without accumulating thousands of dollars of debt on top of it. It’s true, you need a good credit score to borrow money for personal reasons, like a home loan, car loan, or credit card today, as well as making inventory purchases, facility leases, or even starting your own business.

The problem with credit repair is that you only consider it when you’re in trouble. It’s best to preemptively protect your credit scores before it’s too late. However, if you’re staring down some unfavorable scores for 2018, here are a few ways to pursue sustainable credit repair:

1. Review All Credit Reports:

First, you’re going to need to do your homework. The major credit bureaus today, like TransUnion, Equifax, and Experian, are all required to give you a free copy of your report once per year. You can simply request this by submitting a form on their site or calling. If you’ve already used up your ask, try free services like Credit Karma to get the full picture on where your reports stand today.

2. Debate:

In the past, you needed to write formal letters to these bureaus disputing marks and wait for an answer. Today, you can dispute the discrepancies right online, as well as through third-party platforms like Credit Karma. Focus on the items that have the most effect on your credit score, and ignore the tinier problems that will dilute your argument.

3. Late Payment Entries:

Mistakes happen, it’s a part of life today. Your mortgage lender might have reported a late payment that you actually paid on time. You are welcome to dispute late payments the same way you dispute incorrect remarks above. Try and be civil about the mistake – that way, they will be more likely to work with you through it.

4. Play The Game:

Let’s say that you want to dispute an accurate remark on the report. Sometimes, when people go into collection for example, and never pay it, the collection agency will give up. All that remains on your credit report is an entry. You can choose to dispute that entry, and many times, people win with that kind of argument.

5. Credit Limits:

If you’re constantly carrying a balance of 50 percent or more available through your credit card, that will negatively impact your score. Maxing out these cards will really do a number on the card as well. One of the best ways to avoid this in the future is to increase your credit limit, keeping your charges the same in the mean time.

Credit Repair

Credit repair is not impossible, contrary to popular belief. It does, however, take careful consideration and preparation on your part.

Now is the time to get started with excellent credit for 2018.

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