How to Fix Your Credit and Increase Your Credit Score

Your credit is your lifeline and your credit score determines your credit. So many people have fallen victim to bad credit or low credit scores due to their own financial hardships. There is good news though. You dont have to fall victim to all of those credit repair scams that are out there when you can fix your credit and increase your credit score yourself by following these easy to understand steps below. Dont let bad credit ruin your life. You can make a difference in your credit. You can fix your credit and improve your credit score all by yourself. All it takes is taking the first step. This hub will explain in two parts how you can fix your credit and increase your credit score by checking your credit report and using your credit report to fix any errors and pay off any outstanding debts.

Fix Your Credit By First Checking Your Credit Report

The first step in fixing your credit and increasing your credit score is to get a copy of your credit report from all three of the major credit reporting agencies. These include Transunion, Equifax and Experian. It does not matter how you get your credit report as long as you get a copy of your credit report from each agency. You can do this by calling each agency and requesting a copy of your credit report. You can also go online and get a copy of your credit report. The main thing is to get three separate copies of your credit report. Once you have all three copies of your credit report, sit down at the kitchen table or whatever and follow these next steps.

1. Grab a pen and begin to read over each credit report separately. Circle any credit errors that you know for a fact are incorrect. Once you have all of the credit errors circled, move to the next step.
2. Compare all three credit reports to each other and look for any descrepencies. Such as one credit report having a credit claim that the other tow credit reports do not have. Circle any discrepencies with the pen.
3. Look over each credit report again with a fine tooth comb for errors and descrepencies and circle them.
4. Next, look over each report and circle each outstanding debts or outstanding balances that you owe to a creditor or a lending institution.
5. Take a notepad and write down the credit claim and the amount along with any contact information. Be sure to circle and write down any outstanding credit claims or balances that are keeping your credit score low.

Now its Time to Fix Your Credit and Increase Your Credit Score

Now that you have sat down and circled each and every credit error if applicable and you have circled and written down all of your outstanding credit claims and outstanding balances, it is time to first contact the credit reporting agency. Follow the steps below to begin and finish this process of fixing your credit and increasing your credit score.

1. With credit reports and notebooks in hand. Call each credit report agency that the credit errors were found with and report the errors to the agency. The agency will take down the information and investigate the claim. It may take weeks or even months but if the claim is a error, they will remove it. Be adiment with the credit reporting agency that this errors has to be fixed now because it is preventing your credit score from increasing.
2. Once you have finished reporting and documenting all of the credit errors to the credit reporting agencies, it is time to call each creditor and set up and repayment plan. Explain to the creditor that you are working on repairing your credit and that you would like to set up and repayment plan to pay off the outstanding balance owed to them. Most all creditors will jump at the opportunity because this is a way for them to get their money back. Let the creditor know how passionately that you are about repaying the balance and repairing your credit. Once you start making repayments, you could see a difference in your credit report or it could take until you have paid the balance off. Either way you will be fixing your credit and increasing your credit score.
3. Make sure to contact all of the creditors and set up a repayment plan. Then, make the repayments exactly as agreed upon by you and the creditor. Each balance that you pay off will increase your credit score. Continue paying off each outstanding balance until all of the creditors have been paid in full.
4. Wait about one month after paying off all of your creditors before rechecking your credit report. Once again get a copy of all three credit reports and recheck each report. You should see a very large jump in your credit score. If you do not think that the credit score is reflecting what it should, maybe not enough time has passed by but to be safe contact the credit reporting agencies and explain to them that you have completely paid off all of your creditors and your outstanding balances that were on your credit report and that you should be noticing a higher credit score. Sometimes credit reporting agencies take a while to get around to increasing your score. This is why it is essential to make direct contact with them to let them know how important it is for them to increase your credit score because you have no more errors or outstanding balances. Most of the time, the agency will fix the problem or increaser the score right then and there. If not, the will immediately begin the process of increasing your credit score compared to your paid off debts.

The bottom line is that if you make sure that you credit reports are free of errors and you pay off all of your outstanding balances to your creditors, your credit score will increase big time to a good or perfect credit score. Some creditors will help you out by turning you over every time that you make a repayment to help increase your credit score before the balance has been paid in full. Good luck and remember that you can fix your credit and increase your credit score by applying these simple steps. All it takes is starting with step one.