Credit Repair 101

Credit repair process got you confused?

No worries. We're here to break it all down for you.

What is Credit Repair?

So what is credit repair exactly and how does it work?

Simply put, the credit repairing process is the disputing of negative, outdated, inaccurate and unverifiable information from an individual’s credit report.

The three major credit bureaus, Equifax, Experian, and TransUnion have a credit profile for each person with a tradeline (or account) on their credit.

They’re supposed to keep updated, timely, accurate files but with so much data to keep up with it leaves plenty of room for errors.

In fact 80% of credit reports contain inaccuracies. 

Alarming, isn’t it?

Even with laws like the Fair Credit Reporting Act and the Fair Debt Collections Practices Act, the disputing process can be quite confusing, tedious, and overwhelming. 

Don’t fear. Millennium Financial Services is here!

Credit repairing companies, like us, help bridge the gap between the costly credit bureau errors and having an accurately reflecting credit report that has been verified.

When to Consider Credit Repair?

Your credit scores are lower than you’d like them to be, but how do you know when you may be in need of credit repairing services?

Ask yourself this.

Do you have … Collections, charge offs, old medical bills, bankruptcies, foreclosures, evictions, repossessions, delinquent student loans or too many inquiries on your credit report?

If you answered yes to one or more of these, a credit repairing company might be in your best interest.

While one or even a couple of these derogatory remarks on your credit report may not permanently keep your scores down in the poor category, the more negative accounts you have the lower your scores go. 

That’s a fact.

A good time to consider reaching out is when your negative accounts out weigh your positive accounts.

Or when you are unable to reach the next level in your life, because your poor credit scores are holding you back.

Don’t wait until you’re considering bankruptcy to make a change.

How to Start Rebuilding Your Credit?

Step one – understand how credit works.

Step two – remove derogatory remarks.

Step three – rebuild your credit.

In our blog post we explained how to calculate your credit score, which gave you a general understanding of how credit works and how credit scores are factored.

This is the first and most important step in rebuilding your credit.

Next is removing any outdated, inaccurate, unverifiable negative remarks from your credit report, as they only keep your scores down. If you need some help here, we know some proven experts … hint hint.

Believe it or not, if you don’t build positive credit, removing those negative remarks could actually decrease your credit scores!

There are many ways to do this. 

Open a credit card and keep the balance low. Your credit card balance should be no more than 10% of your credit limit. Be responsible.

If you have been denied for a credit card in the past, check out Credit Builder Card for a secured card that offers guaranteed approval as long as you don’t have an active bankruptcy.

Make your payments on time!

Open an installment account if you don’t already have one. We recommend Self.

Don’t apply for or open too many accounts. 

A couple of inquiries aren’t bad. And while your credit score may take an initial hit, one or two new accounts will benefit you overall, and we’re in it for the long haul. 

If you want step by step instructions, we highly recommend you order our ebook that shows you how to raise your credit score in 45 days or less.

Written by CEO of Millennium Financial Services and best-selling author, Selena Lawrence.