Making mistakes with your finances is something that many people do, and many times it can cause damage to your credit rating. But what exactly is a credit rating, and can you repair it? Below are some tips and solutions for credit repair in Miami, FL, so you won’t have to wait several years just to be able to continue your financial life due to a few mistakes.

Credit Rating

A credit rating is basically a formulated value based on your financial history. Anything related to loans, credit cards, mortgages, etc. can be found on your credit history and can affect what your credit rating is. Whenever you apply for a new loan, credit card, or mortgage, companies will submit a credit rating request to one or more of the major rating bureaus and get your score to determine the level of financial risk of having you as a customer. If your rating is low, you will need to consider some form of credit repair in Miami, FL, if you want to be able to be eligible for mortgages or auto loans.

Discovering your Credit Rating to Start the Repair Process

When it comes to credit repair in Miami, FL, you need to know where you stand first—this will help you know how much work you are going to need to do to repair it, and what kind of solutions you can use. Once a year, you can get a free credit report from by federal law. Alternatively, you can use credit score tracking apps, such as Credit Karma, for a report of what is currently on your credit history.

Discovering Errors in Your Credit History

One of the easiest ways to achieve credit repair in Miami, FL, is if your bad rating is caused by an error in your financial history. Errors can be disputed if you find them, but do not attempt to dispute information that is actually accurate—it’ll just be a waste of time. Crosscheck your full credit report with all the known personal and financial information you have for yourself and your outstanding debts, credit cards, and major purchases. If you notice any errors, make a note of it, and gather any information regarding that transaction that you can find to prove that the information on your report is false. Lastly, send a letter to the credit reporting agency that the mistake is listed on; explain what the mistake is and include copies of the report along with your proof.

Consider Your Budget

An important step in credit repair in Miami, FL, if your bad report isn’t caused by an error, is making sure that your spending is now under control. The best way to repair your credit rating isn’t just paying everything off, but also making sure that you are paying the minimum balance on each of your credit cards/loans/mortgage on time every month, and that you are avoiding applying for more credit. If you do have outstanding overdue balances, it is important to pay those off first, then start to plan your monthly budget to ensure you have enough to pay off at least the minimum due each month. Good credit can be built up by just paying bills on time; missing monthly payments is the biggest cause of bad credit ratings.

An extra tip for credit repair is that, when you pay down your credit cards, do not cancel them. Your total available credit affects your score, so having a credit card that has no balance on it is better for your score than having no credit card at all.

Credit Repair Done Right

Credit repair can be a real hassle to handle on your own; it can be time-consuming and sometimes confusing. If you are looking for credit repair in Miami, FL, then consider contacting Credit360 Credit Repair today.