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How to Repair Bad Credit on a Budget

October 24th, 2016 · No Comments · Credit Repair

by Credit Info Center

(Last Updated On: September 22, 2017)

How to Repair Your Credit on a BudgetBad credit is challenging enough. If you’re dealing with a tight budget too, repairing your credit might feel like a lost cause. But contrary to what you may have heard, you need not pay an expensive credit repair company to get the job done. Learn how to repair bad credit on a budget.

1) Do it yourself.

The most expensive way to repair your credit is to pay a credit repair company to do it for you. You could be looking at hundreds of dollars that would be better spent going toward unpaid debts. Fortunately, there is nothing a credit repair company can do for you that you cannot do for yourself.

Check out our articles on DIY credit repair that will teach you everything you need to know about disputing listings on your credit reports for nothing more than the cost of postage.

2) Check the statute of limitations on old debt.

If you have collection agencies coming after you for unpaid debt, check the statute of limitations in your state. If it’s passed, you are no longer legally to pay the debt. That said, it can remain on your credit reports for up to 7 years, so you may want pay it anyway. But knowing the statute of limitations has passed gives you all the wiggle room you need to pay old debts like these as your budget allows.

Find out the statute of limitations on debt in your state.

3) Negotiate lower payoff amounts.

Even if a collection agency is able to verify a debt, that doesn’t mean you have to settle for what they’re asking you to pay. There is always room for negotiation.

Learn how to settle debts yourself.

4) Apply for a secured credit card.

Look for one that reports to the credit bureaus. You will have to put up a cash deposit for a secured credit card, but that’s money you will get back once you upgrade to a regular credit card. The cash deposits vary, but can be as low as $200.

Find a secured credit card.

5) Sign up for free credit monitoring.

The only way to be sure all your credit repair efforts are paying off is to keep a close eye on your credit reports. Did a credit bureau say they’re going to remove an inaccurate listing from your credit report? Did a collection agency promise to remove a listing once you paid off the debt? Do you have a new secured credit card that is supposed to be reporting to the credit bureaus?

Whatever your credit successes, you need to be sure they’re being reflected in your credit reports. And you can do that for free through these credit monitoring sites.

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