Credit Repair Tips

by Elenor Segerson on March 21, 2012

Has your poor credit been giving you a hard time? In these depressed economic times, a lot of folks are watching their credit ratings sink. You can make your credit score better by following the tips in this article.

Before you’ll keep reading this little guide, I suggest you take a peek inside the www.fastcompany.com blog where they suggest some ideas in the financial adviser career article to find out what are most usual mistakes folks in your same conditions do and ways to quickly solve them.

Avoid filing for bankruptcy. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.

If you want to increase your credit score, apply for a new loan and pay the balance off quickly. This will help to show that you can be responsible with money, and will help to raise you to a better standing.

Never trust a business or person who offers to clear up your credit for a price. Especially if it is correct information they say they can remove. If the information is correct, it will remain as part of your report, in most cases, for seven years. You can erase information that is incorrect from your credit record.

Review your credit report with care to make sure there are no discrepancies. Credit reports sometimes contain inaccurate information. You can dispute an error and get it removed, but it may take time.

Lowering the balances on any currently revolving accounts will increase your credit score. By lowering your credit card balances, you will be able to improve your credit score. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.

If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. After you have paid your debt, request appropriate documentation that confirms your zero balance.

A great credit score should allow you to get a mortgage on the house of your dreams. Staying current with your mortgage payments is a way to raise your credit score even more. Owning a valuable asset like a house will improve your financial stability and make you appear more creditworthy. This will be very helpful if the time comes where you need to take out a loan.

The first step to credit repair is making the minimum monthly payments on your credit cards. Late payments will hurt your credit scores even more. Paying something every month helps prove that you are creditworthy.

For those with imperfect credit, it can be hard to secure financing for a home. If you are in this situation you should look into FHA loans before speaking with a bank. Even if an individual does not have money for the down payment to purchase real estate or pay closing costs, FHA loans may still work.

When repairing your score, be cautious of law offices and lawyers that promise fixes for credit. Because so many people are experiencing credit problems due to the economy, shady lawyers that advertise useless, possibly illegal credit repair services have appeared. Investigate a lawyer before hiring them to help you in repairing your credit.

Before you concede everything on your credit report is valid, scrutinize it very carefully. Your score might be influenced by mistakes or cases of identity theft. Usually, these can be removed by filing a credit dispute. These can take some time to be resolved, but they will remove an invalid discrepancy.

You should record any threats you get from collections agents. Know the laws in your state that can protect you from illegal practices.

These tips can help you repair your credit and keep it high. Credit rating affects your life in many ways, so make sure to learn all you can about it.

The author offers great tips on concern and money free on the business and finance blog to help people get the right decisions.

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