How to Get Help to Fix Your Bad Credit

Fix your bad credit to save a lot of money.

Living with bad credit often results in higher interest rates on various types of financing. Some people accept bad credit as a way of life, and are perfectly OK with paying expensive finance fees. Yet, help is available to fix your bad credit. Different factors play a role in credit scoring. And knowing how to manage credit better can quickly boost a low score.

Things You'll Need

• Credit report
• Home equity loan
• Debt consolidation agency

Instructions

1. Request credit reports from the three major bureaus. Use Annualcreditreport.com to get a copy of your personal credit reports annually. Credit reports reveal details on your credit history such as creditor names, account balances and payment history.

2. Write to dispute mistakes. Draft a dispute letter and send this letter to the credit bureaus to dispute any mistakes or errors on your credit report. By law, credit bureaus must investigate and delete erroneous information.

3. Use your equity. Contact your mortgage lender to see if you're eligible for a home equity loan. Maintain a good payment history with your lender to qualify for this type of loan with bad credit. Use the funds from the loan to pay off your outstanding debts and help raise your credit score.

4. Speak with a debt consolidation agency. Use a non-profit agency to communicate with your creditors and negotiate better rates. Send monthly payments to the consolidation agency, and they'll handle your accounts and distribute payments to your creditors.

5. Consider automatic payments. Schedule automated monthly payments with your bank or creditor to avoid late payments and a damaged credit rating.

6. Use a credit repair agency. Work with a credit repair agency to get derogatory remarks such as late payments, unfamiliar accounts, judgments and collection accounts deleted from your credit report.

Tips & Warnings

• Credit repair services do not guarantee results. These services dispute derogatory remarks and ensure the accuracy of information listed on credit reports. They work with creditors to remove reporting mistakes.

References

• Bankrate: Credit Repair
• Does Credit Repair Really Work?
• FTC: Buidling a Better Credit Report