You Can Be Your Own Credit Repair Company

You Can Be Your Own Credit Repair Company

If your debt is below four figures and you are not contemplating bankruptcy but wonder why you never have enough money, you could hire a credit repair company. But if you are willing to use self-discipline and can make commitments to lifestyle changes, then you can be your own credit repair company. Otherwise, you will have no choice but in the future to hire a professional credit repair company.

Get Your Credit Report

To repair any credit, it's best to first know your credit report. This is different from your credit rating. You need to pay a fee to get a credit rating (also called "credit score") but you can get up to three credit reports per year for free. They are provided free from three companies - TransUnion, Experian and Equifax. Not only does this let you know where you stand, but if anyone has been trying to use your identity for any questionable transactions which will definitely damage your credit rating. The sooner you spot these errors in your name, the sooner they can get cleared up.

Figure Out How Much You Make

Professional credit repair companies need to know how much you make - total income for your household - for a week, a month and a year. You can figure out the same thing. Remember to take out taxes. Since the tax laws change every year, you don't want to rely on a tax refund every year - one year, you might not qualify for it. And then what will you do?

Figure Out How Much You Spend

The next thing credit repair companies will tell you is to figure out exactly how much your household (that's every family member combined) I a week, a month and a year. You can also do this yourself, but you and everyone in your household have to be honest. You must keep a spending journal of EVERY single expense you do. This way, you can see exactly where the money is going and you can devise a strategy to route the money back into your pocket.

Spend Less Than You Make

This should seem obvious, and is easier said than done. But it is possible, with and without the help of a professional credit repair company. You need to buy less often, economize, be patient and be persistent. If you spend $100 on groceries a week, only to have to throw a good bit out for being spoiled, there's a way to reduce costs and trash right there.