Rebuilding Credit – The Critical Step to Financial Success

It is not easy to survive in today’s world with bad credit. You will be able to get by but everything will be expensive and life certainly won’t be easy.

Loan interests are higher for people with a low credit score. You may even not get approved for loans or credit cards due to your bad credit. It is easy to get approval for rental apartments if you have a good credit score. You can get better rates for auto insurance. In short, financial success is not possible without good credit. If your credit score is low, there is no reason to despair. It is possible to rebuild credit with some easy steps.

Rebuilding Credit

There are various ways to rebuild credit via credible means. A low credit score is often the result of poor financial planning and missteps. But with assured measures, you can raise the credit score over time.

Rebuilding credit cards –

Credit cards are often used to improve credit. You can become an authorized dealer on another person’s credit card. In such instances, the credit card’s owner’s good credit will begin to reflect on your credit reports. You are actually not going to use the card. You also won’t be responsible for making any payments on it.

There is always a risk associated with rebuilding credit cards. If the credit card owner’s credit begins to get bad (due to delayed or non-payments of bills, other reasons), it will reflect on your credit report too. You will also need to find a credit card with stellar credit history, which is a difficult task in itself.

For these reasons, it is important to work with financial services firms specializing in rebuilding credit. They can guide you if rebuilding credit cards will be a good option for you to increase your credit score or you could benefit with another method. They may also have credit cards with good histories with them to help their clients.

Disputing errors –

Errors on credit reports are a big reason for low credit scores. Incorrect repayment history or outdated information can remain on the credit reports and adversely impact your credit. But if these are systematically removed from the report, the positive rise in your credit will be apparent in due time.

If you approach a reputed financial services firm that specializes in repairing and rebuilding credit then they will help you dispute the errors with the help of a proper process in place.

The first step is to analyze credit reports. The financial experts assigned to you will check and review your credit reports by all three credit bureaus. The review helps in identifying errors in each of the credit reports. The expert will conduct a very thorough audit of your reports so that no errors are left unchecked.

The next step will be to formulate a strategy to dispute the errors. Your credit expert will not try to dispute all the errors in one go. There will be a systematic plan of action in place to tackle the situation. The credit expert will begin to dispute errors on all the reports by the three credit bureaus as per their impact on your score.

It is not easy to dispute errors. The credit bureaus are not likely to remove the errors simply based on your requests. They may ask you to furnish proof of payments or other details. Your credit expert will help you in understanding this process. You will have time to arrange the proofs or bills to share with the credit bureaus along with the application.

If the request to dispute a certain item is rejected by one or all credit bureaus then your credit expert will not let it go. A new request will be sent with or without proofs (as necessary) to the credit bureaus. The process will continue as long as even one error remains on your credit report. As soon as the errors begin to disappear from your credit reports, you will notice improvements in your credit score. It may take one full cycle of report generation when you will be able to see the results. But you are definitely going to see results with this proven method of disputing errors.