Bad scores on credit reports are nothing less than a nightmare for most people and cheap credit repair sounds like a distant dream. Bad credit scores mean that there are fewer lenders willing to offer you loans, and even if they do lend credit to you, they will be charging you quite high interest rates. This problem laid the foundation for the existence of credit repair companies. However, the problem for getting the scores repaired at cheaper rates still remains in the air. Most people with bad credit scores feel that they cannot get their credit scores repaired. So, here is the good news. One can get his or her credit scores repaired cheaply, however, it does require one to put in some time and hard work.
Obviously, when you will approach a credit repair firm they will be charging you fee. Moreover, the worse your credit score is, the more they will charge you. Before moving on to that part I will tell you how you can minimize your bad credits on your own without paying anything. In this way, you will have to pay much less to the credit repair firm.
Firstly, make sure you make your payments on time. Be well aware of your due dates. The ideal thing to do is to clear up your dues before the due date. This will increase your FICO scores. Secondly, Make sure your account balances and credit limits are not exceeding the allowed limits. This is going to be a bad mark on your credit report. Furthermore, try to use your credit card as little as possible. Avoid using big credit cards like Visa or Master Charge and stick to smaller names. Stick to cash payments as much as you can but you must use your credit card at least a bit otherwise nothing would be reported on your credit report.
Keep reviewing and revising your reports on annual basis and keep a close and careful watch for errors and mistakes. This is important in order to make sure that mistakes do not hamper your credit progress. In order to do this you can ask for a free credit report and examine this for any discrepancies.
Coming onto the next step, what you have to be careful about is that you do not apply for too many new accounts as application acceptance requires inquiries into an individual’s credit report which would remain on the report for the next two years, thus reducing the credit rating of the individual. So you have to make sure that you are applying for credit only when you are in urgent need in order to avoid inquiries.
After getting off with the above three requirements you can look for any references you can get which would allow you to get extra credits on your report and allow fast recovery of your credit ratings and the good thing is that referrals could be acquired without spending single penny. A good idea would be asking your friends and family for help.
Now once you have brought your credit ratings on a better position, it is time to approach a credit repair firm. As mentioned earlier, the better your credit ratings are the easier time you will have while dealing with a credit repair firm. If you still find you cannot invest much in a credit repair firm, here is another way out.
Order your credit reports from all the three main recognized credit bureaus that include Experian, Equifax and Trans Union. Next, go through your report and analyze it carefully and critically. The bad news is that since every credit bureau has its own format, you have to be really good at analyzing the reports. The good news is that if you are not all that handy with the analysis thing CreditFormula.com is there to help you. It offers you a really user friendly manual for only $37, plus it makes analyzing errors really easy.
Once you have your hands on to all the negative information in the report, write a dispute letter to all three of the bureaus. Do not forget to attach a copy of your driver’s license, your social security card and a utility bill. Now, when writing a dispute letter make sure you do not deviate from the guidelines provided to you by CreditFormula.com, or else you are going to get bullied by the credit bureaus. Although the investigation time taken by the bureaus is 30 days, however, the Credit Formula Guide teaches you Method of Verification. This will make the bureaus prolong their investigation period for more than 30 days. In that case they will have to remove all the negative information regardless of whether they are correct or incorrect.
Now wait for the results. If you still find negative information on your report you can always ask for a reinvestigation. Remember, the law allows you to ask for an investigation as many times as you feel necessary and let me tell you that for getting cheap credit repair, your report analyses properly is the first step to take.
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