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Credit Restoration Requires Patience

02-Nov-2015 written by : FSI-Team

We all have heard the common adage "a stitch in time saves nine" but nevertheless tend to forget it when we overlook small things erroneously or deliberately. Building a credit score takes time, both small oversights and big blunders tend to impact your credit score negatively. Once you credit score has been spoiled for whatever reason it pays to remember that it can be restored but the keywords are “patience” and “time”; after all nine stitches will take time!!!

What is Credit Restoration?

Credit Restoration or Credit Repair is a slow process that is required when an individual has a low or a bad credit score. This may be due to lapses or oversights in the past. While some genuine errors on your part, the financial institutes or the Credit Rating agencies may find it easy to fix, others may require dedication and time. The effort and time spent on restoring credit is totally worth it as the benefits of a good credit score are numerous and important. An earlier post; benefits of a good credit score discusses them in detail.

If the bad score is due to your own bad decisions then you definitely owe yourself another chance to make things right so that you can get access to credit if and when you require. In case the negative score is due to some lapses on some other person or organization then it is your right to correct those mistakes and restore your credit score.

Credit Score Restoration or Repair is a process where you make changes in your lifestyle and financial habits to clean up your credit trail. Regardless of how bad the score is it can be improved with right guidance and patience. There are organizations like Credit Sudhaar that can help you in doing so.

How Does Credit Restoration Work?

The first thing required for credit repair is a detailed review of the credit report.

Correct Inaccuracies: In case there is any inaccuracy or error on the part of the credit rating agency then it should be reported immediately to the agency and the agency will rectify it thereby solving the problem. If the credit rating has been negatively affected due to some error on the part of the bank due to faulty reporting which the credit agency will not be aware of unless you apprise them (like dishonor of cheque due to technical reasons or some other error) then you can request the agency to cross check the information provided by the bank. The banks will also be more than willing to co-operate if there has been an error on their part.

Fix Past Errors: In case there are unpaid credit card from the past that are mounting up due to charges and interest on charges then it’s time to take the bull by the horns. Get in touch with the credit card company and come up with a plan that will clear the unpaid amount. There might be some student loan that you might have forgotten about; a small unpaid amount; a single unpaid EMI can also cause a lot of trouble. It’s best to fix it at the earliest to avoid further damage.

In case in the past you have had a tendency to utilize your credit limit to the maximum or nearing the maximum limit then you need to curb that too. High credit utilization has a negative impact on the credit score.

Plan future course of action: Make sure that in future you do not default on the payments of credit card or loan EMIs. Plan ahead and first pay the dues before making any other financial expenditure. Paying on time is the biggest contributor to the credit score; taking care of this aspect over some time alone can improve the credit score to a large extent. So in case you are wondering how to improve CIBIL Score this is the first step.

Do not make unnecessary loan enquiries; in case you require a loan then you can postpone it for a while. Too many loan enquiries also bring down your credit score; as it is with a bad credit score it might be difficult for you to get fresh loans.

The above steps are simple but there is no quick fix; so make sure when you start the credit restoration process you keep this fact in mind. In case you require there are professionals also to help you with this.


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