The Challenge of Repairing Your Credit

good creditRepairing credit can be a challenge to most people. The first place to start is by knowing what is on your credit report and what items should be removed. Inaccurate items on your credit reports can stop you from getting a mortgage loan, credit cards and even a job.

Checking Credit Reports

Request a written copy of your credit report from all three of the major credit reporting agencies. Check every item on the report carefully for errors. Your credit reports will give you all the data that is used to calculate your credit score. Check for any late payments listed on your reports that are inaccurate. Make sure all the amounts on your accounts that you still owe are correct. If you find errors of inaccurate late payments or accounts with wrong balances, dispute these items with all the credit bureaus.

Stop Using Your Credit Cards

You need to reduce the amount of debt that you owe to creditors. Do not close unused or paid up credit cards. Put them in the drawer and leave them there until your credit is repaired. Closing them will give creditors the wrong information about your credit ability.

Setup a Payment Schedule

Work with your bank and see if they offer payment reminders that you can receive by text or email. This will help you to make your payments on time. Your score is determined on how you manage your money and if you make your payments on time. You can set up payments through the bank, but this will only pay the minimum amount. What you want to do is pay more than the minimum each month on as many accounts as you can afford. Pay more each month on the highest interest account first. Pay off your highest interest account first and then start paying more on the other accounts.

Make all Accounts Current

If you have missed any payments on credit accounts, make them current as soon as possible. Stay up to date and on time with all accounts. After paying your accounts on time for a while, you will see an improvement in your FICO Score. The positive information over time on your credit report will show that you are managing your finances.

Simple Tips to Remember

Keep the balances low on all your credit cards. Do not move debt around from one credit card to another. Pay off the debt instead. Do not open up any new credit cards just to have more credit available. This will lower your credit score in most cases.

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Why You Need A Credit Monitoring Service

Credit MonitoringHave you ever used a credit monitoring service? If not, you should strongly consider it. Identity theft is one of the fastest growing crimes in the world and can destroy your life in an instant. The good news is that with the proper preparation you can avoid identity theft of turn things around quickly if you do become a victim of it. On top of that, having your credit monitored regularly can help give an insight into your credit habits and whether or not you’re hurting or helping your creating in the long run. Let’s go over some of the major benefits of credit monitoring.

Avoiding Identity Theft

Having your identity stolen is a terrible situation to find yourself in. Not only can this be a major financial blow to you or your company it can create weeks or months of stress that can have huge negative effects on your mind and body. With a credit monitoring service you will be notified at once if there are any changes to your account and credit profile that seem unusual. In some cases, a credit monitoring company can even block transactions that you obviously didn’t make. This is a great buffer against the threat of identity theft.

Fixing Identity Theft

In some cases identity theft happens and you can’t prevent it no matter how hard you try. However, with a credit monitoring company you can catch it almost immediately and take the appropriate measures to ensure that it does no lasting harm to you or your business. Once notified by the credit monitoring company that odd transactions are being made in your name you can get in contact with the authorities and get every thing sorted out ASAP. This is much better than having to go months trying to fix everything.

Building Your Credit

Building up your credit is a lifelong process where any missteps tend to count against you more than good behaviors count in your favor. With credit monitoring services you can keep track of your credit score and get an idea of how your credit usage is affecting it. Keep in mind though that the credit system is very complex and that deciphering specific actions and behaviors and how they affect your score can be next to impossible. Instead it is best to take a look at your score as a whole and identify patterns in your use of credit over a period of time to get an idea of how you’re doing.

Hiring a Credit Monitoring Service

Finding a great credit monitoring service to keep their eyes on your credit isn’t hard and isn’t expensive either most of the time.  Here’s a list of the top 10 credit monitoring services from ProjectDebtRelief.com .The fact remains that having your identity stolen can leave a massive financial stain on your record if you’re not prepared to handle it, or better yet, prevent it from happening in the first place. If you’re not working with a credit monitoring service, you should seriously consider getting in touch with one today to help protect your credit and your identity.