Seven Steps To Maintaining A Perfect FICO Score
Are you considering credit repair, but don’t know where to start. You can hire a reputable credit repair service to manage the job for you, but you still must participate in the process. Here is a roadmap of the path you should follow if you want real, lasting success. Happy trails!
Are you ready to get your credit repair journey underway? You will need to get your credit reports. Your efforts must focus on all three major credit bureaus, Experian, TransUnion, and Equifax. You can get your reports individually form each of the bureaus, but for ease of use and to facilitate your credit repair success I recommend that you get a nice user friendly tri-merged report. It will be easier to work with and save you time and frustration.
When it is time to proofread your reports you need to adopt an attitude of doubt. No longer should you automatically accept what is in writing. Credit reports are the product of a flawed system prone to errors. Credit reporting errors can easily translate into dollars. Don’t be the victim of these costly mistakes. If you want credit repair success give yourself the benefit of the doubt; if an item does not look right, dispute it.
If you are in a credit repair service you will not have to worry about this step, but if you decide to manage the dispute process yourself there are two rules. One, do it in writing; online disputes include fine print that can create a disadvantage if you need to re-dispute an item that was verified the first time. Two, keep it simple; the credit bureaus do not want to know your story. Keep your request as clear and minimalistic as possible.
If tough times have left you with no open accounts it’s time to rebuild. Given the current state of the credit markets your credit repair rebuilding efforts will probably need to utilize secure credit cards. Just do it. This will require a smallish investment, but it is worth it. Your credit scores are based on both the positive and the negative. While you work on cleaning up your report you must work on rebuilding your good credit.
Once you have a couple of secured credit cards open you need to manage them properly. A little misstep can send your credit scores into a tailspin. But don’t worry, it’s not hard. Just make sure to make your payments on time and keep your balances down. The ideal situation while you are in credit repair mode is to use only 20% of the available limit.
Don’t let the past repeat itself. Now is the time to make sure you have a grasp of your complete financial picture. Build yourself a budget. Get a pad of paper and write down every expense that you can think of. Make sure to include everything from the smallest daily outlay, like lunch, to the big ongoing expenses like rent. Once you have listed all of your expenses compare the final number with your take home pay. Make sure you are not living beyond your means.
While you are analyzing your financial situation consider making room for a regular contribution to a savings account. A savings account will allow you to handle unexpected expenses without falling behind on your bills. This will insure that your credit repair progress continues without interruption. As your saving account grows you will also experience the wonderful feeling of confidence and stability.
All you need to do now is to stay the course. As you persist in your dispute process with the credit bureaus you will see your credit report gradually transformed before your eyes. And as you continue to manage your new secured credit cards you will be amazed to see how your credit scores respond. And let’s not forget the wonderful feeling that comes from managing your finances properly and watching your savings account grow. Now you can join the millions of others who have discovered the fact that credit repair really works!