The Credit Fix Equation

Yolanda Navarro

Although credit cards can be what land the most people in credit problem, they're also the absolute tool for credit fix. If you find yourself faced with mounting debts and worsening credit, the most essential things you can do are constantly paying your minimum credit card bills, and not exceeding your card's credit limit. If you enable your card to be revoked or "charged off," you will have an extremely hard time accomplishing credit one day, which will make it even more complicated to repair your credit rating.

Or, if it's too late and you've had your cards revoked or charged off, you should apply for a card from a company that specializes in servicing customers with not-so-good credit. Although the card's interest rate is high and there's an expensive annual charge, it's worth it to have an open, active credit account. Otherwise, how are you ever going to rebuild your credit?

Rebuild + Revamp = Repairing

But rebuilding your credit by ways of the timely payment of your new charges is only half of the credit restoring equation. There's also the matter of the items that are earlier listed on your credit reports. If you can get an item deleted from one of your credit reports, then to that credit bureau and all who use it, it's as if it never took place - the instance of not-so-good credit will have been removed from your record. Incredibly, it's easier to have this accomplished than you might think.

Obtain and Review Your Credit Reports

First, you will need to get your credit reports from the 3 major credit agencies - Equifax, Experian, and TransUnion. This may be accomplished by going to their web sites (equifax.com, experian.com, and transunion.com), and paying the fee. If you've been denied for credit, insurance, or employment in the past 60 days, you are entitled to free credit reports. Send documents of your denial together with your credit report requests.

Once you have your reports in hand, scan for inaccurate information and especially negative information. If a few untrue positive information made its way on to one or more of your reports, you are under not legally responsible to report it as being in accurate. But as for the negative information, photocopy your reports and use a highlighter to indicate what you may want to be changed. Send a letter explaining how the information is false and include any corroborating documentation that supports your assertion.

Once you've dealt with the inaccurate information, it's time to move on to the things you know are accurate. It's essential to note that any negative information (excluding a bankruptcy) that's older than 7 years old shouldn't appear on your credit report. You have every right to request its removal, and the credit agency must comply.

Set Achievable Goals - And Make Them Concrete

But next you need to determine what you may want to have removed, and how practical your chances are of having it deleted. If you declared economic failure last year, or you have an unpaid judgment against you, there's not much of a possibility you'll be successful. But if you got divorced 4 years ago and your spouse stopped making the payments on the car, which ultimately resulted in repossession on your credit record, you just might get it removed.

Other, minor debts are not as complicated to have removed. For example, if you owe a credit card company $1,000 for a canceled card, you might be able to get them to erase the information from your report if you pay them in full. Generally charges like this go unpaid or end up being settled for pennies on the dollar, so if you have the capability to pay your debts in full (or close to it), you might be able to get your creditor to send letters to the credit bureaus saying that it was all a misunderstanding.

The key is to evaluate your credit report and resolve what can realistically be attained. Give yourself 3 achievable goals and go from there. And in the meantime, be sure you do not repeat the mistakes of your past. Keep two or {3} credit cards open and active and pay the charges in full and on time. It won't happen overnight, but by following these guidelines, your credit will be rebuilt, revamped, and restored. The sooner you get on it, the sooner the process will be complete.

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