Credit repair comes in when your finances go awry. It often takes more than three months to set things right once your financial problems are reflected in your credit report.
The most common question that credit repair agencies have to answer is "Can you fix my credit score quickly?" Here "quickly" is a relative term. While you, as the client, feel that one month can qualify the word, the credit repair agencies will often try to convince their clients that this term would apply to about a 3-6 months period.
1. Help The Agency Help You
You want them to address your credit score problem quickly. Be sure you give them all the ammunition they need. Put together all the information pertaining to your regularly-paid accounts and those on which you defaulted.
Give them the complete documentation that supports your claims – receipts, letters, communications, correspondence, and so on. You will also need to be completely truthful with the agency, or they will not be able to speedily address your problems.
2. Stay Focused
The worst enemy of speed when repairing credit is the tendency to approach the problem in a haphazard manner. Use the services of the credit repair agency to draw up a plan and stick to it completely, until your credit score reaches the highest possible scoring.
Prioritize the tasks so you will eliminate and limit any financial drain such as high interest loans, penalties, late payment fines, and the like. Unless you stay completely focused on the task and give it all you've got, it's unlikely that you can speed up the credit repair process.
3. Budget Expenses
It doesn't sound like much when you think of budgeting. This is, however, one of the most critical aspects in credit repair. You need to know exactly how much money is coming in and how much money needs to be spent every month.
Only then you will be able to curb frivolous expenses and use the money saved in this manner to repay your existing liabilities faster. Budgeting will also ensure that you are using your money optimally.
4. Earn More
This is another very simple advice, yet one that is very seldom applied. There are two ways to create surplus with anything –
(1) use less of the commodity, and
(2) increase the income of the commodity.
In order to repair your credit fast, you need to cut down on all expenses other than those that are most basic such as food, shelter, clothing, education and health, for as long as it takes to complete all the repayment schedules. On the other hand, you could also create surplus by increasing your earnings. Take stock of your talents and look for avenues that will enhance your income.
5. Savings Are Essential
Look closely at your spending patterns and identify what caused the present condition. Even when the sudden paucity in funds is caused by a mishap, there is a lesson to be learned. You should not only limit your total expenses to 3/4th of your income, but also ensure that you put something aside for "rainy days." Savings are essential, no matter how much you earn!