While many businesses are closed due to the coronavirus, the credit reporting agencies are opening up your credit reports so you can keep track of your reports and credit score weekly. People can now access their credit reports weekly, which means credit repair just got easier for bad credit borrowers.
Check Up on Your Credit
Due to the economic stress that the COVID-19 pandemic has put on everyone, the credit bureaus are allowing everyone more access to their credit reports. Pre-coronavirus, you were allocated a free report once every 12 months from each of the three bureaus.
Now, you have the ability to request your credit reports from all three of the credit reporting agencies for free, once a week. This means that you can get a report from TransUnion, Equifax, and Experian every week until April 2021. You can access these reports for free at annualcreditreport.com.
You also don’t need to worry about lowering your credit score if you request your credit reports multiple times a year. Checking your own reports comes with no penalty – it's classified as a soft inquiry, which won’t harm your score.
All three credit reporting agencies may have different information, depending on what has been reported to them. Because of this, you may have differing credit scores, so it’s important to know what each of your reports contains.
Now’s the Time for Credit Repair
If you have bad credit and are looking to repair your credit and raise your score, now is the time. You can view the direct impact of hard inquiries and on-time/missed payments in real time.
Say you recently paid off your credit cards: you can check your reports and see if the balance is reported. Once the balance is reported, you can see how much it’s affected your reports. Usually, loan balances are reported at the same time every month (what time of the month depends on the creditor).
The same goes for on-time payments and late payments on any loans you currently have. This opportunity really gives you a direct look into how much your financial habits can influence your score.
Additionally, you can take this chance to repair any errors on your reports. Notice an account that you’ve already paid off that is hurting your credit score? Contest it with the credit bureau that’s reporting it, and prove the account has been paid with receipts/bank statements. Challenging an inaccurate account on your credit reports is called filing a dispute, and you can do this online for all the credit reporting agencies.
Because you can review your reports weekly right now, you can keep tabs on the disputed accounts, make sure they’re removed, and watch your credit score rise.
If your reports are riddled with errors, you can also pay a credit repair company to dispute the accounts for you. This service comes at a price, but if you’re buried under inaccuracies and you don’t know where to start, a credit repair company could be for you.
Applying for an Auto Loan Soon?
If you’re considering taking on new credit, it’s a good idea to review your reports before doing so. You should know what lenders see before you apply. You can also take advantage of the ability to review your reports weekly to see the impact of a hard inquiry on your reports if you apply for a loan.
Until April of 2021, you have the ability to keep track of your reports weekly, and this gives you an advantage when it comes to repairing your credit, applying for loans, and working on your financial habits. When you can see the direct impact of paying off your credit cards or making your payments on time, you can also see where you need to improve.
If you want to take out an auto loan, but your credit isn’t the best, a subprime car loan could get you into a vehicle and repair your credit at the same time. Auto loans are installment loans, and they typically last for a few years. This can create a solid repayment history if you make all your payments on time, and payment history is the factor that makes up the biggest portion of your credit score.
To get in contact with a dealership that has subprime lending options, complete our free car loan request form. Here at Auto Credit Express, we have a nationwide network of dealers that have the resources to work with borrowers of all types, and we look for one in your area!