Credit repair is critical to saving money on insurance, loans, and credit cards, but that's not the only reason to repair your credit. A better credit score opens up new employment opportunities, even promotions and raises with your current employer. If you dream of starting your own business or just want the security of knowing you can borrow money when you want to, you should repair your credit sooner rather than later.

An example of when verification can work against you. Let’s say you missed a mortgage payment that you made on time because of an insurance issue. For example, if your flood insurance isn’t up-to-date with the mortgage lender, they increase your payment requirement. If you have recurring payments set up and don’t pay attention to correspondence, then the payment you make won’t cover the requirement for that month. Then they report to the credit bureau that you missed a payment even though you paid on time. Even if you correct the issue with the lender, the credit bureau may count the information as verifiable because you technically missed the payment, even though it was wrong.


It’s easy to check your credit reports from each of the three major credit reporting agencies. You’re entitled to a free copy, once a year, of all three of your credit reports under the Fair Credit Reporting Act. These free credit reports can be accessed via AnnualCreditReport.com, the government-mandated site run by the major bureaus. (You can also view a free credit report snapshot on Credit.com.)
An example of when verification can work against you. Let’s say you missed a mortgage payment that you made on time because of an insurance issue. For example, if your flood insurance isn’t up-to-date with the mortgage lender, they increase your payment requirement. If you have recurring payments set up and don’t pay attention to correspondence, then the payment you make won’t cover the requirement for that month. Then they report to the credit bureau that you missed a payment even though you paid on time. Even if you correct the issue with the lender, the credit bureau may count the information as verifiable because you technically missed the payment, even though it was wrong.
Get a copy of your credit report: Knowing what is on your credit report is important – you can’t fix it if you don’t know exactly what is wrong. According to a recent survey by Bankrate Inc., 31% of adults do not know their own credit score. Since this is one of the main factors in a bank’s decision to give you a loan or mortgage, it is a good idea to both know and understand this number.  Trisha cleaned up her act and her credit report:
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It’s important to be careful with this step, though. If you apply for too many loans, it can damage your score. Instead, you need to plan your credit applications carefully. Start with a small installment loan. You might be able to get a small, low-balance installment loan from your bank. It might also be possible (if you are looking for a car) to get an inexpensive car from a dealer that specializes in customers with poor credit. Your small loan will probably have a relatively high interest rate, so plan to borrow a small amount, and keep the loan term short.
If your lenders are willing to work with credit repair agencies: The credit repair agencies that have been doing this for a while know the tricks of the trade, so they have the experience to negotiate with your lenders on your behalf. Does this always work? No. Some lenders don’t like working with credit repair services. Some lenders aren’t willing to negotiate. However, for the lenders who are willing to listen, this is a good way for credit repair services to raise your score.
The cost varies based which path you take through the credit repair process. If you do it yourself, you can repair your credit for free. Professional credit repair services tend to have setup fees plus monthly administration fees. The setup fee is typically around $15-20 to obtain your credit reports and review them. Then you pay a monthly fee while they make disputes on your behalf. This fee is generally around $80-$120 per month. Credit repair software generally has a one-time cost that ranges from $30-$399.
Each time you apply for credit is listed on your credit report as a “hard inquiry” and if you have too many within two years, your credit score will suffer. In general, a consumer with good credit can apply for credit a few times each year before it begins to affect their credit score. If you’re already starting with below-average credit, however, these inquiries may have more of an impact on your score and delay your ultimate goal of watching your credit score climb.
Know where you are at financially. Check your credit report to see exactly where you need to improve. Do you have a lot of missed or late payments? Is your debt utilization too high? These clues can help you figure out what items to tackle first. You are entitled to a free report from each of the credit bureaus one a year (so, three total). You can visit AnnualCreditReport.com (the official site run by the three credit bureaus) for your free reports. You can also order reports directly from each of the three bureaus:
There shouldn’t be any reason NOT to increase your limits if you have been in good standing for the past six months to a year. However, being denied a limit increase is a great way to find out about a possible problem before it snowballs into a headache. If you’re denied a limit increase, always find out why and correct the issue as soon as possible.

The cost varies based which path you take through the credit repair process. If you do it yourself, you can repair your credit for free. Professional credit repair services tend to have setup fees plus monthly administration fees. The setup fee is typically around $15-20 to obtain your credit reports and review them. Then you pay a monthly fee while they make disputes on your behalf. This fee is generally around $80-$120 per month. Credit repair software generally has a one-time cost that ranges from $30-$399.
The debt-to-credit ratio is definitely considered one of the more important factors that help determine consumer credit. This is also why it is not recommended that you close any unused credit card accounts you have as a way to try and raise your credit scores. Doing so will affect your utilization ratio percentage and can actually do more harm than good.
A credit score ranges from 300 to 850, with the highest numbers reflecting the best risk. If your score is below 600, you will have a hard time finding lenders and loan products for which you qualify. If you have a 720 score and above, you will generally have access to the best loans and interest rates available. The world of credit scoring is a mysterious one: the formulas are a closely guarded secret and have never been made public. If you don’t have a good credit score right now, you may feel helpless, not knowing what can be done to turn this situation around. There are actually a lot of things that you can do that just require a little discipline. We offer you a few tips.
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