How to recover from a credit catastrophe

Credit catastrophe
Today we tell you that the good news is that no matter how bad your credit condition is, there is a way to improve it.

By Manuel Tovar, September 17 – Hispanic Solutions Group

Do you know how to recover from a credit catastrophe? It is a very serious process, but there are alternative solutions.

In the course of our existence, certain events can have a serious impact when it comes to your finances and the credit rating. Such as illness, injury, job loss, and divorce are just a few examples of situations that could trigger a credit catastrophe. Even if your credit problems stem from poor decisions or lack of knowledge, it is important to try to put the past behind you and start rebuild your credit for a better future.

Today we tell you that the good news is that no matter how bad your credit condition is, there is a way to improve it. Next, our team of Hispanic Solutions Group will show you a guide that can help you chart your own path to credit recovery.

You start with a credit check

The first step in any credit rebuilding plan should include checking your three credit reports by going to the three recognized financial entities, including TransUnion. Credit scoring models evaluate the details of your credit report and assess your risk accordingly. So if you clean up your credit reports, your credit scores should start to recover over time.

For example, the AnnualCreditReport.com gives you free access to your credit reports once every 12 months. During the COVID-19 pandemic, credit reporting agencies are giving free access to the weekly complimentary credit report.

How to Fix Credit Report Errors

As you review your credit reports, you will want to keep an eye out for credit report errors. Recently a study of the Federal Trade Commission found that one in four consumers had errors on their credit reports that could affect their credit scores.

If you discover errors on your credit reports, you have options. The FCRA It allows you to dispute errors with the consumer reporting agency responsible for including it in your report.

THE DATA.– When a credit bureau receives your dispute, it has 30 days to investigate (occasionally 45 days). After the investigation period is over, the credit bureau should remove the account from your report if the data provider (aka creditor, collection agency, etc.) cannot verify that it is accurate. Alternatively, the data provider could also instruct the credit bureau to update the account or verify that it is correct in order to avoid hassles in its procedures.

We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in repairing your credit, disputing debts that do not belong to you, or other services, call us at (612) 216-1599.