To Fast Credit Repair
If your credit
rating is not as good as you want it to be then you can fix this
yourself. There are a lot of wild claims out there about instantly
repairing your credit record, but this is not true. This article is
about credit repair for beginners so read it very carefully.
is an important element of credit repair as you will discover below.
If you know that you are behind on loans of any kind, credit card
payments or even a foreclosure then it is very likely that your credit
record has taken a nose dive.
happens it will be really tough to get new credit cards and maybe some
loans. If you are able to get loans then the interest rates are likely
to be higher. If debt management problems have resulted in you having
a poor credit rating then you can fix it yourself.
is your Current Situation?
There are three
bureaus that publish credit reports in the USA and these are Equifax,
TransUnion and Experian. You need to know where you stand right now so
obtaining a credit report from each of these companies is very
Once a year you
can get these reports for free. Even if you have to pay a small amount
for the reports it is worth doing as it is your starting point for
credit repair. When you get your reports look for your scores. Between
700 and 740 is good and anything below 700 is not good.
there Errors in the Reports?
uncommon, it is possible to have errors in your credit reports. If the
information is correct then don’t waste your time arguing about
this. Just face the fact that it was your fault. If there are genuine
mistakes then you need to get them cleaned up.
personal information on the reports such as your name and address and
your social security number. Then take a look at your credit history.
Look for credit cards, significant purchases and outstanding debts.
Highlight any errors here.
evidence for your error claims such as bank statements. Then send
copies of everything to the company concerned. These days you can do
this via mail or online. The agency must get back to you within 30
days of receipt.
your House in Order
more than you earn now. This is significant because you want to be
able to pay all bills on time, start to pay down your existing debts
such as credit cards and not apply for any new credit. You need to
budget your spending so that you can focus on debt management to help
your credit score.
now onwards pay your bills on time
One of the most
effective ways to pay repair bad credit is to pay bills on time
consistently. There is no room for negotiation here it is something
that you just have to do. Mistakes do happen and if you find yourself
behind with any bill payment then fix this as quickly as possible.
The payment of
your bills on time is the single most important factor in credit
repair. You will not see any improvement in your credit score until
you start to pay your bills (all of them) on time regularly.
Paying down credit cards
When you are
creating your budget you need to allow for the paying down of
outstanding credit card balances. Start off with small amounts and
then gradually increase them. You will be surprised at just how
quickly you can take these balances to zero.
your credit cards during this period of pay down. Don’t cancel them.
The credit agencies will calculate a debt load based on ratios so you
need to be careful with charging. If you have a $1500 limit on your
card and you charge $500 then you have utilized 33%. This is better
than charging $1000 at 50%.
new Credit Scenarios
It is vital
that you avoid any new credit scenarios. When you are in a store and
they offer you a credit card in return for a discount you need to
refuse this. Your credit report will show these as “hard
inquiries” and too many of these will adversely affect your rating.
You must heed this warning. If your credit score is low then new
credit applications will make the situation worse.
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