Have you ever wondered if it was possible to repair poor credit standing? The good news is that it can be done. The downside? It would require a lot of work and patience.
Credit repair is the process of fixing poor credit standing that may have deteriorated for a variety of different reasons. Repairing credit standing may be as simple as disputing mistaken information with the credit agencies. Identity theft, and they damage incurred, may require extensive credit repair work.
There is no quick fix for your credit. Information that is negative but accurate (such as missed payments, charge-offs or collection accounts), will remain on your credit report for a while. However, there are steps you can take to start building a more positive credit history and improve your credit scores over time.
Rebuilding your credit can be tougher than starting from scratch. You’re trying to show lenders and credit card issuers that despite slip-ups on your part or disasters you had nothing to do with, you’re very likely to make future payments as agreed. However, you can begin repairing things right away. You should begin to see improvement as soon as you start accumulating positive credit information to help counter the big negatives. In time and as your credit score grows, you'll be able to consider new credit offerings and other options
Three things to bear in mind if you want to fix your credit standing
1. Build a good credit history
2. Deal with fundamental financial issues
3. Dispute mistaken information
Your payment history can be a significant factor your credit standing. Taking steps to make sure payments are up to date or improve the payment schedule for outstanding credit can beneficially affect your SMARTScore. The payment history of the individual can be a significant factor on their credit standing. Taking steps to make sure payments are up to date or improve the payment schedule for outstanding credit can beneficially affect their credit score. Furthermore, the amount of credit used by the individual can also play a role. For instance, if an individual is actively using large portions of the credit available to them, even if they are maintaining minimum payments on time, the size of the debt they are carrying can negatively affect their credit rating. The issue is that their liquidity may be pressured by the overall debt against them. By taking measures to reduce their overall debt load, they may see improvements to their credit profile.
Another form of credit repair is to deal with fundamental financial issues, such as budgeting, and begin to address legitimate concerns on the part of lenders.
Ultimately, the best way to help improve your SMARTScore is to use loans and credit cards responsibly and make prompt payments. The more your credit history shows that you can responsibly handle credit, the more willing lenders will be to offer you credit at a competitive rate. It is important to understand that your SMARTScore reflects only the information contained in your credit report because it is a key tool used by lending agencies.
If your SMARTScore is low, there are steps you can take to help improve it. You can:
As you do these things, your SMARTScore will start to improve. So you'll be more likely to be approved next time you apply for a loan or credit.
First, review your credit reports for errors. This is also a good time for you to check your reports for suspicious activity, which might indicate identity theft. Fortunately, you can get a free credit report from CreditRegistry. If you find any, dispute incorrect information on your credit report directly on CreditRegistry by sending us an email here. The credit bureau usually has 30 days after receiving your dispute to investigate and verify information. Typically, CreditRegistry will reach out to the company that provided the information and ask it to investigate, and you would receive the results of the investigation within ten business days of the completion of the investigation.
Credit missteps and misfortunes do eventually fade into the past. The impact on your SMARTScore and the time it takes to recover depends partly on how big the mistake was and how recent. Late and missed payments, judgments and collections stay on your credit reports for years. However, building a good credit standing is a journey and the best time to start is now!
