Your credit score is an imporant number when it comes to seeks new lines of credit. This includes applying for a new credit card, asking for an auto loan, or a home equity loan.
If your credit score is high, your interest rates will be low. On the other hand, if your credit score is low, your interest rates will be high–and that assumes the lenders will even want to do business with you.
Credit Repair May be Necessary
To improve your credit score you may need to do some credit report. This simply means improving your credit history as recorded in your credit reports. Your credit score is based on the history of your use of credit. So, just what is credit repair.
Credit repair involves both (1) removing inaccurate items from your credit report and (2) making sure only good items get added in the future.
So, how do you do this?
There are many steps you can take to accomplish these two tasks.
Of course the first step is to obtain copies of your credit reports from the three major credit reporting agencies. Then you can examine the contents of the reports for information that is not accurate. Some people estimate that up to 80% of credit reports contain wrong information.
If you detect incorrect information you'll need to write to the credit reporting bureau to indicate exactly what is in error. They then must verfy the information or remove it.
Negative information (like a late payment) that is accurate can remain in your credit report for 7 years (10 years for a bankruptcy). So, you may have to wait a while to see these items removed.
On a positive note, there are many things you can do to stop any additional negative items from being added to your credit report. One idea noted in the article referenced below involves the wise use of your credit cards:
You can use your credit card to automate your bill payments for all utilities. For example, on a designated date you can automate payment of phone bill, internet bill, insurance premiums, etc. so that you don’t miss the due dates for any of those. The more consistent you are in your bill payment, the better your credit history will be….
Now, for some more tips to help improve your credit score. These tips mainly involve your use of existing lines of credit. But, don't neglict the credit you already have, because it will be important in determining your credit score.
Keeping your credit history clean is a life long activity. Remember to always pay your bills on time, don't charge “to the max”, and do other things to use your available credit wisely.
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Being Harassed by Creditors or Debt Collectors? 
If you are being contacted by creditors or debt collectors you need to know that there are laws that are on your side to protect you. These laws provide for penalties when creditors or debt collectors go beyond the law to try to collect debts. Consumers, just like you, are collecting $1000s from major lending institutions and smaller debt collectors. Collectors hope you don't know your rights. But, filing a simple lawsuit can often bring in cart loads of cash. |
