CREDIT REPAIR -- Steps 3 & 4

There are 4 steps to follow when fixing your credit: Identify the problem, Notify the Credit Bureaus, Fix the Problem and Keep Records. All four steps are important, however, depending upon your specific credit situation; one step may be more significant than others. Understanding the basic information about each of the 4 steps will make your efforts to repair your credit much easier and significantly more successful.

Having previously covered steps one and two, I figured now is as good a time to address steps 3 & 4 in the process. Of course, this information is simply a starting point. There are many additional things that can and should be done. If you want more information or some advice, just let me kn0w. As always, you can email me at jayhart@cottonwoodmtg.com.

Step 3: Fix the Problem

If you credit is being damaged because you don’t have enough credit, then open an account. Be careful to not open the wrong type of account, and avoid opening more than a single account at a time. If you need to stop missing payments, then make arrangements with your creditors to do so—this may take some reworking of the budget, but it will be worth it to have your credit improve.

In the event that you have something reported that is legitimately incorrect, you need to contact your creditors and inform them of the mistake. This may require submitting proof of your innocence, and don’t be surprised if it takes a few weeks, but in the end it can have significant positive affects.

Step 4: Keep Records.

Make a copy of your credit report. Make a copy of any letters you mail. Write down information on any phone calls, including the date and time and the full name of the person with whom you speak. Seems simple right? I had a client who had written several letters to the credit bureaus as well as her creditors. Unfortunately, she seemed to be getting nowhere. Finally, after a few months of struggles she mailed a new letter and attached a copy of each of the previous letters including the certified mail receipts. Her request was simple: Either fix my problem or let me know why you are not responding. The credit bureau immediately removed the negative report.