It is often not until they apply for a loan or credit card and get turned down that many people realize just how bad their credit is. And at a time when it is no longer even possible to obtain short-term loans with no credit check – although many do accept bad credit, which we’ll talk more about in a minute, knowing your credit score is a must.
Once a person does discover their credit rating is not good, their first thought after that, quite logically, is how can I repair my credit?
How Can I Repair My Credit – Repairing Your Credit By Yourself
Unfortunately, there is no magic formula or secret that will repair your credit in a flash (whatever a few Internet snake oil sales people might tell you) It takes quite a bit of research, hard work, and planning and it is still a gradual process.
It is perfectly possible for you to repair your credit all by yourself. It just takes time. There are going to be phone calls to be made, letters to be written and maybe even applications to complete. But if you want to give it a go here are the basic steps you should take:
- Order a copy of all your credit reports from all of the major credit bureaus. Most of the time you are entitled to one free report from each company once a year and much of the time you can access it instantly online.
- Go through your reports carefully and check for mistakes. Mistakes are pretty common, credit bureaus only report information they do not verify its accuracy.
- If you find a mistake – for example, an account you settled – an old short term loan no credit check perhaps – but is still showing as unpaid – gather together the evidence you have that this is a mistake and make copies of it. attach them to a letter to the credit bureau asking for a review. The matter will then take about 30 days to investigate and if it is decided in your favor the entry will come right off.
- For debts you still owe call your creditors to make a reasonable payment arrangement and then stick to it. It’s not always easy, but if you persevere and keep your temper most companies will come to an arrangement. If you keep to your agreement many companies will also stop reporting you as delinquent to the credit bureaus.
- Consider opening a secured credit card account. As a credit card they do not give you a lot as the limit is usually tied to the amount you deposit but as a credit re-builder, they help a lot. Look for one that offers credit line increases and/or the possibility of eventual conversion to an unsecured credit card after a good payment history has been established.
- Consider taking out a small short-term loan. Although, as we have mentioned, no reputable lender in the UK still offers short term loans no credit check most do consider those with poor credit. Pay the loan back on time and it too can serve as a positive line of credit reporting to the credit bureaus to help raise your score.
- Open an account with a credit monitoring service and use it, so that you can see how quickly your efforts are working as well as watch for any new entries that you may have to deal with.
How Can I Repair My Credit – Paying Someone to Do It for You
As you can see repairing your credit can be hard work as well as rather time-consuming. That is why if you have the spare cash it may pay to have someone help you. The advantage of hiring a credit repair service is that they do all the legwork for you – making the calls, sending the letters, brokering the payment arrangements. They often are a bit better at dealing with creditors and it certainly saves you time.
How much this might cost you will vary. Just make sure that you are working with a reputable company, there are some rather shady ones out there who use some rather underhand methods that could end up getting you into trouble.
Before you hire a private firm you should also check to see if there are any debt relief and debt help solutions offered by the government in your area or by a community group as these are often far less expensive.