Credit Repair Simply Put (2)

Credit Repair Simply Put


Repairing the damage that has been done to your credit rating is not as difficult as it once was. There are many tools and resources available to help you with the process these days. The following advice will help enlighten you to the prospect of having a credit score of which to be proud.

For an improved credit score, avoid store credit cards. Store credit cards are usually opened with an amount that is barely above your purchase price. This causes you to instantly have a maxed out credit card balance on your report. Having a maxed-out balance can reduce your overall score with all three reporting agencies.

To repair your credit as quickly as possible, always follow-up after paying off a debt. That means not only contacting the lender to ensure that they update your credit status but also checking your credit reports to make sure that the new status of that account is shown. Credit reports are updated quarterly, so getting a paid account off your report should only take a maximum of three months.

Ordering one"s free credit report from the three major credit recording companies is absolutely vital to the credit repair process. The report will enumerate every debt and unpaid bill that is hurting one"s credit. Often a free credit report will point the way to debts and problems one was not even aware of. Whether these are errors or legitimate issues, they must be addressed to heal one"s credit score.

If you are working to repair your credit and have discovered errors on your credit report, you need to work to ensure they are corrected immediately. Be sure to make all requests in writing, maintain a correspondence file, and document all phone calls, emails or other communication. You may need the documentation to serve as proof to the legal system in the event you have trouble getting erroneous information removed.

Another way to repair your credit is through the use of secured credit cards. These cards are available with many different rates, so be sure to shop around for one that can work for you. Just don"t apply to too many, because this can actually lower your credit score. This is due to the fact that it may appear to the credit bureaus that you are having money issues, and are trying to increase your credit lines.

If you are trying to repair your credit score, don"t be afraid to open new accounts that you qualify for. Opening a new account, such as a secured credit card, and then maintaining that account in good standing shows creditors that you are trying to move forward. If the only accounts on your credit report are in poor standing, of course your score will be lower.

Now that you are aware of how simple it can be to repair your credit standings, you can benefit by using the advice and getting to work on doing the necessary repairs. Work at improving and sustaining a positive score so you have more opportunities available to you throughout your life.