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Credit & Debt

How to Rebuild Your Credit

Credit scores have become increasingly important in recent years and can affect everything from the interest rate on your home-equity loan to the premiums you pay for auto insurance. If you have damaged credit, you will be forced to pay hundreds or even thousands of dollars more than a person with a clean credit history.

Whether your poor credit is due to identity theft, bankruptcy, inability to pay your bills on time, or any other reason, you can rebuild your credit. It will take a lot of time and effort but when you are finished you will be rewarded with lower interest rates on loans and credit cards.

But be warned, you can not rebuild your credit overnight. Be prepared to spend many hours following up with creditors and collection agencies. It is important to stay organized and keep records of everyone you speak or write to.

It will also be helpful to read The Fair Credit Reporting Act. It's long and not particularly interesting, but it will give you an understanding of your rights as you go about repairing your credit.

Do-it-yourself credit repair

At some point you will have to decide whether or not you want to rebuild your credit yourself or hire someone to do it for you. It's a personal decision and I won't tell you what to do. It really boils down to is your willingness to deal with the work involved and how much time you have to spare.

If you decide to do it yourself, you'll have to start by ordering a copy of your credit report. Once a year, you can order a free copy online at AnnualCreditReport.com. You should go over the credit report very carefully and make note of anything that is incorrect or not up to date.

You will have to stay organized and keep careful records. You will have to contact each lender get everything in writing. The credit agencies will require written documentation before they take you seriously. Be prepared to spend a lot of time correcting your credit report.

Credit repair specialists

If you decide that you don't want to do it yourself, you can hire someone to repair your credit for you. Just be careful that the firm you hire is reputable. Lexington Law Firm has been helping people rebuild their credit since 1991. They are a real law firm that specializes in credit repair and they are experts on The Fair Credit Reporting Act. They offer free customer support 24 hours a day and a full refund policy. Plus, you can cancel at any time.

The longer you wait to start fixing your credit, the harder it will be.
Stop living with bad credit today.

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