How To: Repair Your Poor Credit

Start the new year on the right foot by learning how to repair bad credit! The team at AmOne will help you repair your poor credit and become financially secure.
man climbing out debt hole
By AmOne
Updated on: February 11th, 2022

man climbing out debt hole They’re convenient, generally easy to obtain, and accepted everywhere. For those reasons alone, credit cards can cause a lot of damage. How? Most Americans are in credit card debt.

The commercials are everywhere. In print, on television, on the Internet. We’ve all seen the advertised low interest rates and low monthly payments. The most common pitfall when it comes to credit card debt? The idea that as long as you keep putting a little bit toward it, you’ll be okay. Soon the little turns into an amount you never imagined and it can feel as though you’ll never pay down that credit card debt.

Poor credit can be the results of many different factors from poor money management to unexpected financial hardship such as losing your job. Unfortunately no matter what situation you find yourself in, falling behind on your debts can negatively affect your credit rating.

Another factor in increasing credit card debt is that perceptions of personal financial situations are changing. For example, owning a home that is appreciating in value may cause some people to think they can take on other forms of debt, which in turn leads to people using their credit cards to make every day purchases. These small daily purchases can soon mount, leaving you faced with a large credit card debt.

If you run into an unexpected financial hardship, such as a job loss or other reduction in income, and begin to miss payments, what can you do to turn things around? How do you repair bad credit?

File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate into these any claim you make within 30 days of receiving the initial dispute. If the information is found to be inaccurate, unverifiable, or false, the disputed item must be corrected or removed from your report.

If there is any incorrect information on your credit report then you will want to move forward with disputing it to repair your credit. However, there have been cases where consumers have been able to dispute items that were accurate such as repossessions of collection accounts. Due to the 30 day deadline if those items not verified by the creditor (or the court in the case of judgments) within that time, they must be removed.

Should you decide to dispute a claim that is accurate you can do so by writing a letter to each one of the credit bureaus; no explanation is needed. However, if that claim is verified it will remain on your credit report. Also, if the creditor verifies that dispute after the 30 day time limit, the credit bureau can renew the dispute so long as you are notified at least five days before they do so.

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Negotiate with Creditors

Dealing with creditors is not easy, especially if you’re behind on your payments. Speaking to your creditors directly though could be another way to get negative information removed from your credit report.

Some creditors are willing to let a late payment or two slide if you continue making timely payments, a creditor might remove these claims out of good will. Accurate repossession or collection account claims may take more time to remove and it’s likely you’ll have to pay the claim of if you have not done so already. Whether you’re looking to remove late payment claims or repossessions from your credit report, if you want to repair your bad credit, you’ll want to make sure you negotiate a deal before moving forward with the process.

The Takeaway

Disputing information on your credit report is a step in the right direction for repairing poor credit, but there is no guarantee that these negative items will get be removed from your credit report. Along with disputing claims on your credit report, working on building positive credit can also help repair your credit score. AmOne can help you rebuild good credit by finding ways for you to bring past due accounts current. AmOne can help you to identify ways for you to maintain payments on current accounts to put money toward those that are past due. Our knowledgeable associates are ready answer your questions on money management, financial planning, debt consolidation, repairing bad credit, and more. AmOne offers solutions; your call to us is free and we won’t try to sell you anything. Find out how to reach us and learn more about how AmOne can help you repair your poor credit today.