Everyone these days seems to want your credit score — from car dealers to mortgage companies to potential employers. While it is possible to go through life with a poor credit rating it would make things much easier to undergo some credit repair instead. It can mean huge money savings on loans or insurance. It can even mean getting a raise in pay.
Fixing your credit is pretty straightforward. Most steps though will depend on what is on your credit report. So getting a copy of the report is vital as step one. The credit report may have errors that need to be fixed. It can also point out areas where steps can be taken to improve the overall report.
Once the credit report is obtained whether through a free or a paid program the easiest credit repair to be made is correcting any false information by submitting a credit report dispute. Then review the payment history as late payments can do more damage to a credit report than anything else. This is where a loan consolidation plan or negotiations with creditors may help.
Second on the credit watch list is the level of debt. The amount owed should actually not exceed 30 percent of your available credit. Say your debt limit is $10000. Your actual debt then should be under $3000. So a major goal to improve a credit score would be to make regular timely payments to lower that ratio.
Other areas considered for the credit score are bankruptcy foreclosure paid tax liens and paid judgments. Unless the listing on the report is in error there really is nothing to be done about these. If there is a mistake use the dispute process to have them changed or removed. In these cases though the courts could get involved.
If you do have a bankruptcy on your credit report the best thing to do is start building up your credit rating by repaying small cash loans or using secured credit cards to show you are capable of handling credit responsibly. Just make small purchases with the card and repay on time each month. This could take some time depending on the depth of the credit repair required.
Student loan defaults are also listed on your credit report but they do not have to be a permanent feature. A talk with the lender will tell you what needs to be done to reverse this problem. Typically several months of timely payments will have to be registered to bring the loan into compliance and to have it considered current. For more additional details, click here.
There are a number of options to improving bad credit. The results of your effort though will depend on adopting better habits in using credit. Do not charge more than you can pay each month. Avoid paying by credit for things that will be gone quickly such as food and gasoline. Pretend that regardless of your credit limit you actually only have 30 percent of it.
Getting credit with a bad credit history is difficult but not impossible. A secured credit card as mentioned before is always an option. So are department store and gas credit cards or those offered at a local bank. There also are companies that specialize in issuing cards to those with bad credit ratings but the interest rates will be noticeably higher than for a typical card.
If all these suggestions seem too much for you to handle alone there are a number of companies set up to do the legwork for you for a fee. Also you may be able to get help through the services of a local credit counselor. Either way good credit is a good reflection on you.