Bad credit consolidation loans can be an important step in rebuilding your credit rating. But it is only one step. Having a correct credit report is also an important step. Your credit report may be incorrect and contain errors. Making sure your credit report is free of errors is your responsibility. If you are burdened with high-interest debt and have a low credit score or FICO score, a bad credit consolidation loan along with your efforts to have an error-free credit report will help improve your credit score.
Start by calling a lender and telling them that you want to apply for a bad credit consolidation loan. You will order a copy of your credit report in a few minutes and begin the process. You will have to face the fact that you do not have a clean credit report, but lenders are experienced in dealing with situations like yours. And what a relief it will be when all your credit card bills, medical bills, and even auto loans are marked as PAID IN FULL on your report. Because that is what happens with a bad credit consolidation loan. They pay off all your open bills, consolidate them into a loan, and simplify your life. ONE LENDER, ONE PAYMENT.
Now you can work on reviewing and correcting any inaccuracies on your credit report. Some things you should know:
o As an adult, you have the right to obtain a free copy of your credit report once every 12 months from each of the major credit bureaus (Experian, Equifax, and Transunion) by phone or by mail. You don’t have to pay someone else to get a copy of your own credit report. Once you’ve received your free report for the year, you’ll be charged a small fee for each one you request after that.
oIn the annual credit report, you will be able to download your report to your computer in minutes after verifying your identity. Once you receive your credit reports, check them for errors. Make sure the accounts on the report belong to you and that the amounts owed match your records. If you notice errors, there are instructions for correcting them on each credit bureau’s website.
o You do not need to pay anyone to correct your credit report. If a credit repair service guarantees to remove negative information for a fee, it is not telling the truth. No one can remove negative information that is true (for example, 30 days late on a credit card account). If you can prove that there is an error in an article, the credit reporting agency will remove it.
By consolidating your high interest debt into a bad credit consolidation loan, working to correct any errors that may be present on your credit report, and keeping up with your payments, you will be rebuilding your credit score and should see an improved FICO score within. three months.
