How To Fix My Credit

By: Tamela Peoples

Break Studios Contributing Writer

You want to buy a house or car, but you need to know how to fix my credit before the finance companies will lend to you. This is not a difficult task, but it takes persistence to follow through. Knowing some basic steps beforehand can help you reach your goal.

Read the Report: The first step in preparing how to fix your credit is to review information contained on the major three credit reports- TransUnion, Experian and Equifax. A credit report is a document that contains current and past financial accounts, delinquencies, loans, and tax liens. Credit reports are important because they are used for lending, insurance, and sometimes employment .
Record it: Write down all negative accounts contained in all three credit reports; these are your creditors. Listing them from smallest to largest including dollar amounts helps you to answer the question of how to fix your credit.
No More Mess: Stop accumulating new debt. Leave the credit cards at home, pay all your current bills on time, and avoid taking out any more loans. Not adding anymore debt is a key point when you are pondering how to fix your credit.
Develop a budget: A budget is a plan for how you spend your money. It includes the amount of money you make and how much you spend. Your budget needs to incorporate money you are setting aside for achieving how to fix you credit.
Pay it: When you have saved enough money to pay the smallest item on your credit report, purchase a money order or secured check in that amount. Send it to the creditor asking that they update your accounts to the credit bureaus. Do this for all your creditors as you try to fix your credit.
Make a call: For large dollar amounts, call the creditor to request a debt settlement for 50%-70% of the amount owed to succeed in how to fix my credit. You must have already saved and have a specific amount ready to pay; they will most often want this payment immediately.