Credit repair in simpler terms is rebuilding your CIBIL score. You may have just filed for bankruptcy, and wish to improve your score after the same. It is to be noted that bankruptcy remains on your credit report for 10 years. Yet another requirement would be rebuilding score after repetitive late payments, etc. Regardless of all this, keep in mind that credit repair demands a good amount of time and effort.
Talk to your creditors:
The best way to build your credit gradually is by taking your creditors in confidence and explaining them your situation. While no creditors will agree to remove the default from your report, but they may agree to negate late payments. This will help your score to a greater extent.
If explained properly, creditors may also agree to offer you grace time for settling their accounts. This means that there are good chances that the accounts may get closed without any negative impact on your credit score.
In case you feel that you will not be able to explain your creditors, then it is wise to take help of credit counsellors who can do the needful on your behalf. They work for a fee which is wise to pay rather than having an adverse effect on your credit score.
Use Credit Responsibly:
If credit was easily available to you, does not mean it’s easy to repay, as well. Make wise use of the money that you have. Ensure you don’t be a prey to the credit trap. People land up in such traps mainly if they extensively use credit cards. Ensure what rate each card holds, check where to use debit card and where to use credit card. These small things will help you a lot in the longer run.
- Spend in accordance with your income
- Keep a track of your credit report and dispute issues immediately so that your score improves
- Make use of small loans to improve your credit score
- In case, you are not eligible for small loans then take help of a friend or a family member with a good credit score to be your co-signatory. This will entitle you for a loan.
- Keep in mind that new accounts have a major impact on your credit score when compared to old accounts.
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