Recovering From Damaged Credit

When you have decided to tackle your damaged credit it may seem like an insurmountable feat, after all it took years of damage to get to that point. But even the worst credit isn’t a lost cause, you can always recover your credit to a point.

Taking a step by step approach to breaking down and building up your credit is the best way to get your credit in shape. Before you do anything you have to learn everything you can about your credit and what your problems are. You have to be able to create a game plan before you hit the field!

Get Your Credit Reports

First thing you need to do is contact all three major credit bureaus and get your credit report. You can get these for free once every year but if you need it more than once you will have to pay a small fee.

Once you have these you will be able to see your credit history and activity that has been reported to each credit bureau. This is important because this is the activity that is reflected in your score and credit report. 

Dispute Errors

After going through all of your reports it is important to file a dispute if you find any reporting errors on any of the reports. These errors may be damaging your credit without you even knowing it! Send a 609 Dispute Letter to the credit bureau to dispute the error and ask for it to be reviewed and removed. It may take some time so be patient.

If you file a dispute but an error still remains, try contacting the Financial Protection Bureau for more help.

Restructure Your Debt

If you have a lot of outstanding debt spread over multiple credit cards, consolidating may be a wise choice for you. Consolidating your debt essentially moves your debt from several cards over to one card with a lower interest rate. This helps you because it means fewer monthly payments to remember and less accrued interest.

Pay Down Debt

Of course one thing that will always help your credit is paying down as much of your debt as you can. If you can make significant payments on your highest interest accounts that will do you a lot of good going forward and cut down on accrued interest.

Get Professional Help

If you really want to turn your credit around there is no shame in getting professional help! Finances are confusing and difficult to understand if you aren’t steeped in it all day everyday. A professional can help identify easy wins and places where you can make improvements that you may have never been able to see.

Fixing your credit can be as simple as making a call! We're here to help you rebuild and understand your credit. Give us a call to get started or learn more about what we can do for you 1-800-431-0449.