How to Repair Bad Credit or FICO Scores
If you've been denied credit from a bank or lending agency chances are your
FICO score (aka credit score) doesn't meet that institutions requirements. It's
frustrating not being able to qualify for loans and credit when we need it, but
there are steps we can to to repair bad credit and FICO scores.
The steps on how to repair bad credit and FICO scores starts with attaining a
current copy of your credit report, something everyone should do once a year.
The journey to repair bad credit starts with analyzing your current credit
situation, and looking for items that can be removed, corrected, and challenged
on your credit report.
Because your FICO score is based on current items on your credit report, if
you can reduce the amount of available credit you have, as well as remove and
close accounts that are no longer used you can increase your FICO credit score.
This isn't to suggest that you can remove bad credit items such as late or
missed payments, over limits, and collection agency actions but these aren't the
only items that cause poor credit.
Repaying items that are outstanding and/or overdue as soon as possible should
be your first step to handle items that cannot be removed from your credit
report. A quick How to on debt repayment is to start with the highest interest
rate first, and work your way down through your outstanding debts. As you pay
off an account close them or reduce the limits if they're no longer required.
This is a key step in how to repair bad credit yourself, show that you're taking
action to help repair bad credit or FICO scores so that lending companies can
see that you're trying.
For items that are listed on your credit report in error effecting your FICO
score you can challenge them pending you can supply proof. Accounts that should
no longer be listed, or balances that have since been paid down can all be
corrected right away if you can supply the required proof that they are indeed
closed or paid down. This is done by contacting the credit bureaus in writing.
Never send original copies of anything to the bureaus, send copies and make
copies and of all forms you're required to fill out in the process.
The process of contacting credit bureaus is probably the most ambiguous step
in the credit repair process. If you're pressed for time, or aren't good with
details it's smart to consider hiring a professional to handle this part of the
process. Credit repair lawyers and attorney's will generally remove unlimited
legitimate items from your credit report for a flat fee pending you have all the
required paper work and proof available for them.
Bad credit affects many of us, but it's those that learn how to repair bad
credit and FICO scores that get ahead and leave it behind. The report we offer
on our website will give a more detailed layout of the process, you can request
it by filling out the form on our site. If you're interested in taking the first
step to hiring a credit repair professional consider.
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