How to Repair Bad Credit 

Podcast Transcription 

Money Talk is a podcast brought to you by PFCU where we will share tips and tricks and talk to the experts on all things finance related. Join us as we cover everything from credit and loans to cyber security and careers. No matter where you are in life, PFCU is here for you.

Welcome everyone to this episode of PFCU's Money Talk Podcast, I'm your host, Maddy. We talk a lot about credit. Credit is a very big piece of our financial portfolio, of our financial health. But what we haven't talked so much about is how to repair bad credit. So, if you have bad credit, this is a great podcast for you to listen to.

Now, credit repair can be a long process that may take several years. And I know that sounds overwhelming and you immediately maybe want to close up and not do anything about it because it can be scary. But I really hope that these steps are going to help you start that process of credit repair. Now, especially knowing that it can take several years to repair your credit, that is facts, right? Contrary to the claims of some credit repair companies that have that claim that there are quick fixes. There are no quick fixes when it comes to raising your credit score. While there are many companies that do business as credit repair agencies, most do nothing that you could not accomplish on your own. You can do so much on your own to repair your bad credit. So, here are some tips for helping to increase your credit score.

Get your credit reports from each of the major credit bureaus. These are Equifax, TransUnion, and Experian through the official website of annualcreditreport.com. Be sure that you use this website and not another with a similar name. You should not have to provide any credit card number to obtain your credit report. It's completely free every 12 months. You're going to want to check your credit report for errors, unrecognized loans or credit cards, unknown employers, or unknown addresses could be a sign of identity theft. If you find any of these errors, contact the credit reporting agency to request an investigation. Minor errors such as an old home address or former employer being listed as current are common and are usually nothing to worry about. But some of those larger errors can actually affect your credit score and you may not even realize it.

Contact your lenders to see if it is possible to renegotiate your payment plan. You may seek an interest rate reduction or the ability to delay payments without affecting your credit report. Avoid the temptation of applying for new credit cards by opting out of receiving unsolicited offers. You can call 1-888-5-Opt-Out or visit optoutprescreen.com to get started. You'll also want to avoid any other kind of unsecured consumer debt, and this includes those retail store cards.

And last, make regular payments even if you can only afford the minimum amount. Above anything else you want your accounts to be listed as current and not past due.

For most people, there is no magic to improving credit. Just avoid making the situation worse by missing payments or adding new sources of credit. Make all payments on time and the report will improve in the coming months and years. Just keep it up consistently. I really hope that this podcast, if you have bad credit, will help you move forward with improving that credit. And if you feel overwhelmed or like you want to sit down and talk to someone to maybe lay out a plan for improving your credit, PFCU has free financial coaches that you can sit down with. So, feel free to check that out on our website and make an appointment. Thanks for listening.

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