Do-it-yourself credit repair

It can take months or even years to rebuild your credit, depending on how bad it is. At the same time, you don’t have to spend money on credit repair services because you can repair your credit yourself for free.

How to fix your credit in 5 steps

Your credit is not going to improve overnight. You need to be patient by taking small steps over time that can repair your credit. If you’re not sure where to start in the credit repair process, follow these five steps:

  1. Check your credit reports and score – The first step is to know where your credit score is and what’s in your credit reports. You can get a free copy of your reports from the three major credit bureaus – Experian, Equifax and TransUnion – every 12 months at www.annualcreditreport.com. In the meantime, there are plenty of ways to get your credit score. Keep in mind that mMost auto lenders look at your improved FICO score automatically, and you can go to www.myFICO.com and pay a small fee to get it.
  2. Dispute any errors – Once you have obtained your credit reports, check again for errors. If you spot anything incorrect, you should dispute the error with the relevant credit reporting agency. The agency must investigate your dispute within 30 days. If they don’t give you an action plan letter within 30 days, the entry is automatically deleted.
  3. Make sure all bills are paid on time – Your payment history represents 35% of your FICO credit score. If you continue to pay all your bills on time, you should see your credit score improve over time.
  4. Pay off credit card balances – In addition to paying all your bills, be sure to pay off any outstanding balance on your credit cards. Your amounts owed still make up 30% of your FICO score, so keeping balances low is another important way to improve credit. Good advice: plan a budget dedicated to the repayment of unpaid balances. This way you can reduce it instead of worrying about paying it all at once.
  5. Apply for new credit with caution – It may seem counter-intuitive, but applying for a new line of credit, like a loan or a credit card, can really improve your credit and increase your credit mix while reducing your credit usage. The trick is to pay off the balance each month.

What about credit repair agencies?

If all this seems too stressful, you could use a credit repair agency to manage the cleaning of your credit reports. These companies charge fees and are sometimes not very reliable. If you want to use a credit repair service, be sure to research the company, review the contract and fine print before signing, and make sure the company is bonded (has l money to protect consumers against fraud). If you don’t feel comfortable with the service, trust your instincts and move on. Prevention is better than cure, especially when it comes to your credit.

The essential

Whether you like it or not, credit is king and a major factor in determining whether or not you can finance something important like a vehicle or a home. You also don’t need perfect credit to get approved for a car loan, as there are dealers who can work with you to get the financing you need. Where are these special financing dealerships, you ask? Auto Express Credit can do the research for you.

We work with an extensive network of specialist finance brokers who have the loan resources to help people in many types of credit situations. Our network is nationwide, so we can help you find a dealer in or near your area. Don’t wait any longer to get the new vehicle you need, just fill out our car loan application formand we’ll get to work connecting you with a dealer!

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