How Long Will it Take To Completely Repair Your Credit?
If you want to work on improving your credit history, how long will it take before you can completely repair your
damaged credit? The answer would depend on the weight of your debt and in the situation you’re in. Remember that no one has exactly the same credit file and you need to evaluate your personal credit status in order to take the appropriate steps. In this article, let’s discuss the basic steps you can do to repair your bad credit. After reading this article, you should be able to get an idea on how much time you need to completely repair your credit rating.
Disputes and Credit Repair
The first step in rebuilding credit is to check your personal credit report for errors. Unauthorized charges or false information may be the reason why you’re suffering from bad credit. The Fair Credit Reporting Act gives consumers the right to dispute incorrect charges in their credit report. This is done by sending a dispute letter to the credit bureau who issued your report.
Generally, the process of disputing takes up to 30 days upon the receipt of your dispute letter. This means, the bureau has only 30 days to complete its investigation about the issue you’re disputing. After the 30-day period, you should receive a response from the credit bureau regarding your dispute. If the issue has been resolved, you will also be sent an updated copy of your credit report.
Nevertheless, if you’re disputing more than just one complaint and each one concerns a different creditor, you may need to wait for a longer time. Ideally, 30 days is given to resolve each complaint with each creditor.
Improving Your Credit Rating
If your credit report is accurate and the reason for your low credit score is untimely payment or overdue charges, it is up to you to repair your credit. The best way to improve your credit quickly is to pay off all your past due debts to your creditors. But what if you don’t have the cash to pay off all your debts at once?
One way to reduce your debts is to negotiate with your creditors. How? Speak with your creditors and explain your current financial situation. You need to be honest and admit that you’re having difficulty with your repayment. Let you creditor know the steps you’ve already taken to keep up with your bills. Request for a modification of your repayment terms. You can also ask that some of the fees (such as late penalty charges) be waived from your account.
Some people may be hesitant to speak with their lenders but if you try, you may be surprised at how most lenders are willing to modify terms for their clients to lighten up their load. If you don’t think you can negotiate on your own, you can also ask help from a reputable and trusted credit counseling agency to assist you with the negotiation.
Once a negotiation has been reached, be sure that you’ll be able to stick with the new repayment terms. Be consistent in submitting your monthly payments and avoid incurring new debts until you’ve paid off all your creditors. If you’re consistent, you should be able to see a progress in your credit history within the first six months.
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