Steps in Credit Repair Plan

Credit repair means the same as ascertaining future actions - such as buying a house, getting credit lines increased, and possibly even needing to rent an apartment. Credit repair is a vigorous effort to restore or improve one's credit ratings. It is not a magic bullet if that is what you are looking for but you can achieve results by following a well- structured, systematic and well- hurdles- borne approach to credit restoration.

Credit repair is the process of increasing your credit score. There are many different ways of going about this. The most conventional way is to get a copy of your credit report from all three credit bureaus. Each credit bureau will provide you with a report, and will include information on what they believe to be an accurate report. You can then check it to make sure that all information is accurate and up-to-date, and that negative items are deleted.

Dispute all errors

The first step in any credit repair plan is to dispute all errors you find on your credit report. It is important that you do this every year. It does not have any effect on your score. Any errors that are listed will be wiped off your credit report. Therefore, count your years and see how long it takes to fix these errors since the law states it will have a negative impact on your score. You can dispute your own errors, or make use of the services of a credit manager, who understands the rules of the game and will take care of the legwork for you.

Pay your bills on time

This will be one of the biggest factors on your credit score. It is extremely important that any credit repair that you undertake also includes your ability to make timely payments, as this acts as a safety net for your creditors. It would not make much sense if you closed the doors of paying your bills, only because of a dispute with inaccurate information. All creditors want to know that you can make payments, so if this can be done, that is the first step needed.

Pay down your credit card balances

Credit card balances are by far the biggest source of potential debt. While your interest rates may seem rather high - about 9.9% according to the acting of the Federal Reserve System, you can dramatically lower a debt through your own actions. The biggest culprit is those fees - the annual fee or transaction fee for your high interest card. You can also ask your credit card company to lower your credit card       interest rates, or to lower your monthly minimums. This means less money lost on interest, and more money available to pay down other debt.