Are you struggling to get out of the grip that a poor credit score has on your financial future? Join us as we take a look at what’s the best way to fix your credit. Here’s what you can do to eliminate the strongholds of poor credit.
What Is Credit Restoration?
Credit restoration, also called credit repair, is the process of disputing errors on your credit report that negatively impact your credit score. It can also include intentional strategies to improve a poor credit score.
Credit restoration vs credit building
To fully understand the value and importance of credit restoration, we must first look at how it differs from credit building. Credit restoration looks at your financial history and analyzes whether or not you can dispute errors that will repair your credit score. It also looks at what you can do to repair your poor credit rating. Credit building, on the other hand, focuses on the future and helps you implement intentional and proactive strategies to maintain a good credit score. At Leaf Credit Solutions, we believe in focusing on all aspects of credit. We can help remove negative accounts, stop debt collectors, and help you rebuild credit so you can live the life you deserve.
The benefits of implementing a credit restoration strategy
The right credit restoration strategy will not only repair your credit score but will open up the financial potential for future opportunities that were previously limited by a bad credit score. Apart from that, credit restoration also:
1. Gives you the option to refinance your loans for lower interest rates
2. Decrease your credit card interest rate
3. Make the process of applying for future loans much easier
4. The potential to use credit repair to get out of debt collection
Being familiar with the benefits and value of credit restoration can only get you so far. Sure, you want to restore your credit, but how does one actually go about doing so.
Our Top 7 Credit Restoration Strategies Explained
We’ve compiled a list of our top seven strategies to help you accurately restore your credit. Regardless of the strategy that you decide on implementing, the result is only as strong as your understanding of your credit report. This is a vital step in starting the process. Get all three reports and scores here.
1. Remove Errors from Your Credit Reports
This is one of the first steps that are implemented when working towards restoring your credit. The Fair Credit Reporting Act states that each individual’s credit report may only contain accurate information.
Unfortunately, errors in your credit report are more common than you may think. Think of this strategy as clearing out the closet, before filling it with a new and improved inventory. Review your report for any fraudulent activity. This can include:
a. Accounts that you never applied for.
b. Credit card accounts that don’t belong to you.
c. Debt paid that is not reflected accurately.
It’s important to keep in mind that too many disputes can also raise a red flag that you are not responsibly managing your credit. We recommend asking a credit repair company for their opinion on how to dispute negative information. Get in touch with us here to schedule your free 20-minute consultation session.
2. Implement proper debt management
Once all your errors have been disputed and removed, the next step is to take a look at your financial management. Track all your expenses and see where there may be some issues making payments or where you can cut back on costs. Being prepared involves diligent financial planning. We recommend that you make sure the top priority in your planning starts with paying your bills. Thereafter, you can focus on other expenses.
3. Submit Goodwill Letters
Another strategy that you can use improve your credit score, is by focusing on your collection accounts. Whenever a lender requires you to settle a debt, the following steps will involve contacting you and subsequently alerting all of the three top credit bureaus.
Once the first bill is sent to the address they have on file, you will have up to 30 days to request validation for the debt. Once a lender receives this letter, they are required by law to show proof of the debt you owe them. If they can provide proof, this debt can be one of the worse kinds, as it shows that you have actively been avoiding paying your debt. Credit repair companies may be able to help you send goodwill letters to the original creditor to remove the late payments due to certain circumstances.
4. Consider an Experian Boost
Experian is one of the top credit reporting agencies. They have recently created a new program called Experien Boost. It allows you to add a mobile phone and utility bills to your credit report. Any payments made on your regular expenses are included when your FICO Score is calculated. About 75% of consumers who have a credit score that’s below 680 saw it improve when they used Experian Boost.
5. Pay Off Small Balances
Most credit scoring models will prefer fewer credit accounts with open balances. Don’t become overwhelmed with the bigger amounts and start by fully paying off the smaller amounts first. Your score will improve with each one you pay off.
6. Become an Authorized User
Becoming an authorized user refers to the strategy of ‘piggy backing’ on someone else’s good credit score. This strategy is a risky one, but if done effectively can massively improve your credit score. It involves someone you know that has a good credit score, allowing you to become one of their authorized users. Be sure to first agree on the terms set in place by you and the account holder and ensure it is written and signed. Being an authorized user on someone else’s account will allow that account to show up on your credit report too, without you necessarily having to use the credit account in any way. The flipside of this, however, is that if the account holder misses a payment, the negative side will also influence your score.
7. Use Highly Rated Credit Restoration Companies
You don’t need to use trial and error when it comes to something as important as your credit score. Investing in a credit restoration company ensures that you’re using the most effective and sustainable strategies for your specific financial situation. It also offers much-needed peace of mind that your credit score is taken care of by professionals who will be able to repair it quicker, more effectively, and stronger than ever before.
Leave it to the experts
Our 7 Steps Process is the key to the results our clients see. Become our next success story today. We remove the burden of credit problems so you can enjoy life without limitations. We’d love to hear more about how we can help you restore your personal or business credit. Get in touch with us here and let’s start the process toward financial freedom.