Are you facing a poor or bad credit score? Have your student loans been driving it down more? Then, you need to take an effort to remove the negative items on your credit file. By removing the unnecessary items, you can have an amazing standing.

Before diving into repairing your credit, you need to gain essential knowledge and understanding everything about credit repair. This way, you can fully determine your real needs for good credit standing as well as effectively resolve all your credit issues.

Credit Repair Methods

Credit repair is an umbrella term used for numerous methods used to improve a person’s credit score.

Credit Dispute

One of the most common methods is through credit dispute – having inaccurate information on your credit report that is harming your score, removed from your credit history. Inaccurate information may show on someone’s credit history if they were (or are) a victim of identity theft or were added to someone else’s credit account as an authorized user.

Although it shouldn’t be reported, many times information about credit usage (amount borrowed, payment history, current balance, etc.) is reported to one or more of the three credit bureaus for an authorized user. Sometimes, this information (like on time payments or low balance) can help your credit score. More often than not, it can do damage to your score. For example, if the account holder is ever late with a payment or uses the majority of the card balance, it can reflect poorly on you as well. Also, debt reported as an authorized user can cause a poor debt to income ratio which can make getting a personal or home loan difficult and can affect your credit score.

Technically, a credit dispute can be done by yourself. However, you will have to file a dispute for each error on your credit report to each of the credit bureaus it shows up with. This can be a tedious and time-consuming process, which is why many individuals prefer to have a credit repair company handle it for them.

Debt Consolidation

Another major damaging aspect to your credit score may be the many lines of open credit and/or loans you have. Borrowing from multiple sources, even if you make the monthly payments on time can look bad on your credit history report. By consolidation your credit card debt, student loan debt, or personal loans, you can greatly improve your score and your credit worthiness. In addition, debt consolidation usually provides individuals with a smaller payment and less interest overall!

For certain student loans, opting for debt consolidation may open the door for more benefits of debt relief. Some student loans, like personal loans taken out to pay for extended education cannot be “forgiven”, or discharged, under certain federal relief programs. However, some consolidation options are eligible for those debt relief programs. For more information about consolidating your student loan debt, reach out to one of our loan specialists at (813) 842-2067.

Student Loan Forgiveness or Default Removal

For some qualifying individuals with federal student loan debt, there are several student loan forgiveness programs that enable borrowers to discharge (eliminate) some or all of their student loan debt. To read more about Student Loan Forgiveness, click here.

Sometimes, especially when individuals are not aware of student loan debt relief options, borrower’s default on their student loans. This means they missed multiple payments of their student loans and the debts have gone to collections and the defaulted status of the student loans has caused serious damage to a borrower’s credit history.

For those who have defaulted on their student loans, there is a chance at a reprieve and to repair your credit following a defaulting on your student loans. For more information on default removal for a student loan, click here.

How Long It Will Take Accomplish A Credit Repair?

Keep in mind that every credit report and case is unique, and some credit issues are rather complex, so we are unable to provide an exact timeframe of when your credit will be repaired; especially without reviewing your credit repair needs first. Schedule a complimentary credit repair consultation for a more accurate estimate of how long your specific credit situation will take and the desired outcome you are hoping for.

How to Improve Credit Score

To ensure that you will be complimentary from a bad credit score nightmare, you need to monitor your credit record on a regular basis. This way, you are sure of what is happening on your credit and can spot (and remove) incorrect data sooner. In addition, you should also practice healthy credit habits such as:

  • Making payments on time, even if you can only afford the minimum monthly payment.
  • When possible, make extra payments in order to bring down your credit balance.
  • Avoid using your credit cards whenever possible. Keep them at home to avoid from overspending.
  • Look into debt relief options such as student loan forgiveness, debt consolidation, or default removal services to help improve your credit standing.

Things to Remember About Credit Repair

Now that you are more aware of the essential things about credit repair and what you should expect from a credit repair company, taking advantage of the following key points is also beneficial:

  • It will be hard for you to navigate any complex issue by yourself especially when disputing the negative items on your credit history;
  • You should not expect overnight results when it comes to credit repair. It will take you enough time, regular monitoring and changes in your personal finance to ensure that your credit will improve;
  • You need to eliminate bad credit habits such as overspending, over borrowing or failing to pay the bill on time;
  • It will always be a good idea to consult a credit repair company regarding your credit status especially when you have no time to file a dispute, or you are not fully aware of the entire procedure;
  • Credit repair process requires for great amount of time and patience since there are situations that are very complex;
  • You need to educate yourself with the credit rights you need to be aware of including the Credit Repair Act and Federal Trade Commission.