If you have faced challenges getting approved for credit accounts due to a less than perfect credit score, then you want to spend some time figuring out why you’re being declined. It could be due to late payments, overspending on credit cards, or other negative marks on your credit report. Regardless of the reason, there are several suggestions as to the best way to proceed. And like everything else in financial management, not every solution will be appropriate to every situation.
In addition to some general rules of thumb out there on how to repair credit, a number of companies are willing to assist you in your credit repair endeavors – for the right price. However, rather than immediately send them a few dollars for a professional credit repair plan, take time to consider the four different methods for achieving a better credit score that anyone can use. It is important to note, though, that some approaches are better than others depending on how involved you want to be.
1. Using a Credit Repair Service
If you don’t have the time to research how to improve your credit score on your own and need the quickest results, this is probably the best way for you to go about achieving your credit score goal. The main attraction of using a credit repair service revolves around having the convenience of just sitting back and letting a professional handle most of the work for you. But services like these can come at a hefty price for people who are already struggling with their finances.
They typically charge a one-time setup fee up to $200 and a monthly fee ranging from $59-$99. There is no way of guaranteeing whether they are proceeding at their maximum efficiency, or whether their services will have a positive impact on your credit. Therefore, the longer the credit score resolution carries on, the more it costs you, the subscriber. This can certainly add up over time.
In addition, you may discover that you’re ending up with nearly as much work as you would have if you completed the process on your own! This work can come in the form of filling out a substantial number of documents, as well as deciding exactly which items to dispute on your credit report and how. You can also end up sending the company information that you receive from the credit bureaus on a regular basis. This type of service works best for someone who prefers to have an expert help them get it done quickly, and correctly. It requires finding a company with an excellent reputation that has been known to fix credit reports of customers consistently over time.
2. Following Credit Bureau Instructions
You also have the option to follow instructions from TransUnion, Equifax, and Experian yourself to help improve your credit. This typically comes in the form of disputing incorrect information found on your credit report through the credit bureaus’ systems. While this option might cost you nothing (cash-wise), you may want to remember the old adage, “You get what you pay for”.
This approach to credit repair pretty much follows that philosophy. If you have any doubts about this, consider the fact that a credit bureau isn’t really in the business of helping you. Its primary goal is to provide businesses with detailed consumer information to help them make lending decisions for applicants. They are going to push you to sign up for one of their credit monitoring services which can be nearly half the cost of a credit repair company’s services. If you are able to fight that temptation and get through the dispute process yourself, it can be worth it in the long run.
3. Following Third-party Do-it-yourself Guides
The third approach involves the vast number of do-it-yourself programs that you can find in the form of eBooks, printed books, and audio recordings or webcasts. This option works well for individuals who have time to research how the system works and can try making improvements on their own.
However, there are a couple things to consider with do-it-yourself programs. First, you want to make sure that the program you choose isn’t out of date. Also, you want to shop around (for programs that come at a cost) so you don’t end up paying too much for information that is likely free from other sources. If you’re comfortable navigating on the internet, already have a decent understanding of credit reporting and repair, and a bit of time on your hands, then this is probably the best route for you.
4. Credit Repair Software
One of the best ways to approach your credit repair project is to research and obtain an effective credit repair software program. If you’re used to working with computer programs, in general, then this is one of the best ways to go. Credit repair software entails far more than just purchasing an e-Book or audio program.
It guides you through repairing your credit step-by-step and includes dispute letters, reminders, and just about anything else you can think of to help you quickly improve your credit report and score. Just make sure that you only purchase a program from a reputable company such as Credit Repair Cloud, which you can try for 30 days for free.
Final Thoughts on the Best Ways to Repair Your Credit Report and Score
If you follow one or all of these methods you will not only be repairing your credit score, but you will also have set up a good way to maintain your credit report and score long-term. Both take time and effort but are well worth it in the end.
