Credit Repair: Rebuilding a Good Credit is Important
With our life increasingly dependent on credit and debt,
having a good credit rating is essential these days. If you
have bad credit, you may find it difficult to get credit or
do things that require a good credit history. Even if you
can get credit, you may be asked to pay higher-than-average
rates and fees on mortgages, loans and credit cards.
Damaged credit can be the result of late payments on your
credit cards, loans you never paid back, delinquent child
support, tax liens, court judgments against you or bankruptcy.
Negative information remains on your credit report for seven
to 10 years. However, It is never too late to clean up your
credit or start to build a credit history. Once your credit
record is on track, you will have access to the financial
safety net that good credit provides.
Examine Items On Your Credit Report
The first step in repairing your credit is knowing exactly
what your credit report says. Credit reports are compiled
by one or all of the companies that supply credit reports
- known as credit reporting bureaus.
Every consumer should regularly review his or her credit
reports from each of the three major credit bureaus: Equifax,
Experian, and TransUnion. It is a good idea to order copies
of your credit report from all three of the largest companies
at least once a year.
Correct Any Mistakes On Yuur Credit Report
It's a known fact that a significant number of credit reports
contain errors, so it would be important how to correct them.
The responsibility of the credit bureaus is to correct an
error you have discovered in your credit report, but only
after you have contacted them with the correct information.
That's why it's so important to check your credit report on
a regular basis.
You can legally dispute any inaccurate and outdated information
on your credit report. Write the credit bureaus a letter requesting
that they remove the information in question.
If you contest the completeness or accuracy of information
contained in your credit report, you should file a dispute
with the credit reporting agency and with the company that
furnished the information to the credit bureau. Both the credit
bureau and the furnisher of the information are legally obligated
to reinvestigate your dispute. By law they have 30 days to
investigate. If they can't prove that it is true, they must
remove it from your credit report.
Avoid Common Problems Leading To Bad Credit
To keep your credit history looking good, get to know some
of the red flags that trigger lender disapproval:
- High balances
- Too many applications
- Low credit score
Add positive information on your credit report
You need to work to add positive information and show stability
in your credit report, like making payments on time and having
no late payments.
- Keep your existing credit accounts in good standing.
- Get a secured credit card
- Make small amout purchases and make payments on time every
Unpaid debts are among the most damaging items on your credit
report. Make every effort to pay outstanding bills. Start
by deciding on a realistic payment schedule - most lenders
and collection agencies will work with you to set up a reasonable
If you are overwhelmed by your debts, contact your local
Consumer Credit Counseling Service.
If you need professional help, you may contact credit repair