| The only way to answer how can I repair my own credit is to find out why you are scoring so low. You need to request your credit report from Transunion, Equifax and Experian as each reports your circumstances slightly different.
If you find some errors on your file which is not at all unusual, you will need to fix each one. What type of mistakes are you looking for? The limit on your credit facility is one that is often wrong. This is important as your file could be reporting that you have exceeded this limit when in fact you are within your true limit. Other common errors are reports of late payments that never happened etc.
If you find accounts like this, you need to file a credit dispute letter with the bureaus reporting the negative information. You will need to state your name, address, account number and social security number. You will also have to confirm why you believe the information is incorrect. The Bureau must investigate your complaint under Federal Law. If the original creditor cannot prove that the information is true, it must be removed from your file which can only improve your credit score.
Repairing your credit score cannot happen overnight and will require work. The best way to resolve your debt problems is to work out a financial budget and stick to it. There is no point in coming up with the best budget if it isn't relevant to your personal circumstances. Keep a spending diary for a month and you will soon see where the holes in your spending are. There are very few of us that couldn't find something to cut back our spending on. It is only when you keep a written record can you spot these items.
When you have your budget worked out, you now need to survive on cash only. Stop spending on your credit cards and pay down loans and other borrowings as much as possible. Once you have your budget in place you will know how much, if any, extra cash you can afford to use to make extra payments. If you do not have enough money, get a part time job or ask your employer for additional hours. Have a look at all the things you bought with your borrowings and see can you sell anything to raise some cash. It is estimated that the average person probably has about $3000 of items in their home that they no longer use and could sell on EBay or similar sites. Why not see how much you have?
You probably didn't reduce your credit score overnight so you can't expect to be able to wake up one morning and find that you have answered how can I repair my credit. But you can make a start today and as they say take it one step at a time. |