Free Credit Repair Tips

Posted On 10:16 PM Tag
If you have missed or made late payments on past and existing credit agreements, the chances are that you have a poor credit rating. Failing to comply with the T&C's of a credit agreement will be reported to the three leading credit reference agencies (Experian, Equifax and TransUnion).

Whilst rapid credit repair is a work of pure fiction, these free credit repair tips will help to restore your credit to its former glory in the shortest possible time frame.

Free Access to Credit Reports

It is possible to get online access to your credit report completely free for a period of 7 days. This will give you sufficient time to scrutinise your credit history for any indiscretions or data entry errors. Make sure that you cancel the arrangement before the end of the trial.

Data Entry Errors

According to the Consumer Data Industry Association (a trade group that represents the interests of credit reference agencies), as many as 3% of all credit reports contain inaccurate information. Applying for credit when inaccurate data is held will result in a decline or a higher rate of interest being charged.

It is important to get these errors corrected at least 6 months prior to when you plan to apply for a loan, mortgage or credit card. This is because it can take a number of months to get these issues corrected. It is imperative the right supporting evidence is provided or this will delay the process further.

Corrections must be requested through the credit reference agency and not the lender. The only exception to this rule is credit card companies.

Free Credit Repair Tips

A credit report is a way for lenders to assess risk. It takes into account that the level of risk can change at any time due to a reduced income-to-debt ratio, more reliable payment etc. A bad credit history is not a terminal condition and can be improved over time.

Basic credit indiscretions, such as a missed or late payments, can be addressed in as little as 7 to 8 months. This is based on the proviso that you continue to make punctual repayments on existing credit agreements, such as the mortgage, utility bills and active credit cards.

If you no longer have any active agreements, an effective credit repair tip is to sign-up to a bad credit unsecured credit card. Making regular payments will help to re-build your credibility in the eyes of lenders. Punctual payment - or otherwise - will be reported to credit reference agencies.

Use these free credit repair tips to re-establish your FICO credit score. It is possible to gradually improve credit, but rapid credit repair is a work of pure fiction. Don't waste your money supporting a multi-million dollar business when you can take care of matters yourself.

Discover how to improve your FICO score and access your free credit report at best-debt-relief-solutions.com.

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