If you’re a student in college and you just obtained your first credit card, this is your chance to build a solid personal credit history. When was the last time you checked your credit report? Are you aware of the status of your credit?
If you find that your credit rating is below par, it isn’t too late to do something about it. If you take action today, you can still improve a poor credit history and raise your credit score before you graduate college. Below are valuable tips on you can rebuild poor credit as a student:
Tips to Rebuild your Credit on Your First Credit Card
Avoid false credit repair agencies.
Don’t fall victim to fake credit repair agencies that may promise to give your credit history an instant fix. Bear in mind that you cannot erase charges or negative marks in your credit report unless you file a dispute with the credit bureaus.
After filing a dispute, the credit bureau will conduct an investigation on the matter to see if your claim is valid. If the information is proven to be false, that’s the time the credit bureau can update your credit report. However, if your low credit score is a result of unpaid charges, the only way you can improve your credit is to pay your debts.
Watch out for credit repair agencies that claim to fix your credit history in exchange for a fee. These agencies are out to take advantage of people in bad debt situation.
Study your credit report. To come up with a good plan in rebuilding your personal credit, order a copy of your credit report so you can see for yourself whether the information it contains is accurate.
Dispute errors. Again, if you found erroneous details in your credit report, you can dispute them and ask for corrections. The proper way to dispute errors is to send a dispute letter to the credit bureau that issued your report. Make sure that your letter is sent via registered mail and that you keep copies of your correspondence with your creditors and the bureaus for your reference.
Create a repayment plan. If you have unpaid debts, you should immediately set a repayment plan. Put debt repayment on top of your priorities. Find ways to cut down your costs and use a significant portion of your income to pay off your debts. This move calls for self-discipline and determination but if you’re really willing to improve your credit history, your efforts and sacrifices would surely pay off.
Talk to your creditors. If you’re having difficulty in keeping up with your debt payments, speak with your creditors right away. Be open about your current financial situation. Request for new payment terms so that repayment would be a lot easier for you.
Many creditors would be willing to modify their own repayment terms to help a client facing financial crisis. If you haven’t tried negotiating with creditors on your own, perhaps you may consider seeking help from a credit counseling agency. A representative of the agency can negotiate with creditors on your behalf and come up with better repayment terms.
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