Taking things step by step is often the best thing to do when it comes to credit. Your credit report can certainly help you in figuring out those steps and represent the base for all the decisions you're about to take. You can just go through each section and notice at a glance what is hurting your credit repair situation. You can then also know who to contact in case of a mistake. Starting with your credit report is the best way to go about credit repair step by step.
One good way to think about your credit repair is to figure out what's hurting you the most. Sure you could go ahead and make a bunch of money and just be done with it, but if you're thinking about credit repair, chances are you're looking for the cheapest and quickest way out. Your credit report analysis can help you do just that. If you use it to take out all the negatives that make your score, you could be able to see a much more step by step way out of your credit repair situation.
Erase the Errors
Start by correcting any wrong information or errors to start with. Some negatives on your credit report might not even be your fault to start with. It can be extremely hard to find the motivation for credit repair if you feel like you've been wronged or that the game is set up against you. Dispute the mistakes on your credit report and you will feel much much better about it all.
Prioritize Late Accounts
Then, in your next steps of your credit repair you should take care of the payments of your most late accounts because they're the ones bringing you down the most. If you haven't paid an account for over three months, you can consider those to be the ones you should put your money on at all costs. Think of this as trauma wound management, you attend to the first wounds that are bleeding the fastest. The longer the credit late, the harder it hurts your credit score – focus here with a priority. Communication and negotiation skills can also come in handy to settle the collection accounts you might have. If you have such accounts, agencies or the company itself are most likely still willing to communicate with you to come to an agreement or set up a payment schedule with you.
Coming Off the Limits
After you’re done with your late payments, take a look at your credit card limits and at any judgments you might have unpaid. They could be hurting your credit repair situation as well. Bankruptcy and judgments, watch that 10 year window for them to fall off of your credit report. Judgments that you didn’t pay can indeed be costly. Also, in a similar way, a student loan default can come to hurt you and you might want to make a few phone calls to fix that one and make it current again.
In conclusion, fixing your credit report step by step includes a wide array of factors, which will come to hurt your credit repair situation if you ignore them. Start by the most important items like late payments and balances that are over the limit, and then move over to any unpaid judgement and/or resurrect your student loan payment plan.