Bad credit can be a huge cause for concern; but with diligence it can be fixed. There is no one size fits all solution for credit problems. Credit repair takes time and requires constant follow up and effort. Building good credit takes anywhere from one year to two or more years on average depending on the overall state of your credit score and the negative remarks in your credit report. The first thing to keep in mind is that no two credit repair cases are the same.
If erroneous entries are showing on your credit report, the next step is to file a dispute with the credit bureau. In most cases you will receive a response within a month. The more items you dispute, the longer it takes to obtain feedback. For every disputed item, you are free to seek more clarification, which might add up to an additional 30 days.
Within 45 days of filing the dispute, your credit score should show some improvement; however to witness substantial changes you should wait 90-150 days depending on your credit rating. Perseverance is the key to put your credit score back on track. Follow up and interact with the credit bureaus to accelerate the credit recovery process. Credit repair is comparatively easier than coping with bad credit all your life.
Not all credit companies are trustworthy. Select reputable companies with a good track record for quick results. To get the ball rolling, you should request a credit report from the three main credit bureaus of Equifax, Experian and TransUnion. If you are a citizen of the United States, you are entitled to get one free copy of your credit report every year. You can also download free credit report copy from annualcreditreport.com
- Once you receive the credit reports, you should look for negative or incorrect information. Make sure to note recent information involving judgments, bankruptcies, liens, collections, charge-offs, and late payments.
- Once you have made the necessary changes you can send a letter to the credit bureaus listing the items that you wish to challenge. Include copies of receipts or other evidence to make your case stronger.
- You would get reply and an updated credit report from the bureau within 45 days after filing the dispute. Typically this updated report would cover all the results of the disputes.
- Once you have updated your credit history, make sure that your credit records remain stable and healthy. Switch to low interest loans and cut down your dependence on credit cards to enhance your credit scores.
No matter how bad your credit score might be, it is better to fix it as soon as possible to ensure a prosperous future.