Financial drawbacks are a very common phenomenon in our lives. Due to job loss, medical issues, house rent, buying a car, unpaid debt, damaged credit score, etc, you can face financial setbacks anytime in your life. But that doesn’t mean your financial growth has been finished for your lifetime. You can easily solve these problems by following a proper step-by-step procedure. It doesn’t matter how much your credit score has decreased. You can improve your credit score by removing all the negative items from your credit report with patience, the right plan, and commitment. This process can be time-consuming, but definitely fruitful.
This step-by-step process to rebuild your credit after financial hardship includes-
Reviewing Credit Report and Fixing the Errors
- Get copies of reports from three major bureaus: Experian, Equifax, and TransUnion. You can get a free copy from AnnualCreditReport.com once a year.
- Review the credit report fully to identify mistakes or errors like late payments, unsolved debts, collections or defaults, charge-offs, wrong information, etc., remaining in your credit report.
- Dispute the errors with the credit bureau as soon as possible. Because fixing errors is the very first step towards credit improvement.
Raising Positive Habits
- Late payment damages your credit history badly. So, first ensure your timely payment habit. You can set reminders or auto payment options for paying bills on time.
- If you face a struggle with debt payment, contact creditors fast to negotiate a better payment plan.
- Review your credit report within 6 months or once a year, no matter how busy you are.
Proper Credit Management
- Don’t spend more than 30% of your available credit limits.
- Start paying down your highest payment first, if there is more than one unpaid debt.
- Avoid closing old accounts. It is considered irresponsible behaviour.
- Avoid applying for new accounts while working on improving your credit score.
- To get your standard credit card’s low interest rate, apply for a credit builder loan if your score is too low. You can make a small monthly instalment into a savings account with a credit builder. You will get a fund after paying off the total loan. Lastly, report to the credit bureaus to establish a positive report on your credit.
Work with Professionals
- Hire a legal credit repair company to get rid of low credit.
- While hiring a company, be aware of being scammed.
- Working with professionals can release you from tension or confusion with the credit repair process.
- Credit Repair companies know the laws and regulations related to the credit repair process in your city or country.
- You can pay the company after getting the services.
Great American Credit Repair Company for Your Professional Help
Great American Credit Repair is such a company, where you can find a specialist to fix your credit on your behalf, and you can also get a free consultation from the consultants to get guidance for your future credit management. Great American Credit Repair has been helping its clients to improve their credit since 2008 in Florida, New Jersey, California, Pennsylvania, and Virginia. We are always ready to help you boost your financial health by fixing your credit legally.