Credit Restoration For A Better Credit Score
Perhaps you have tried to buy a home recently, only to be turned down for financing on the grounds that your credit score is not high enough. If this has happened to you, then some credit repair is in order. While it is sometimes possible to secure financing even if your credit record has some flaws, the better your credit rating, the lower the interest you'll have to pay - which means more money in your pocket! So how can you get started towards credit restoration?
Making your payments on time is the first and most important step. Regardless of your past, it is your recent credit activity which will make the biggest difference to your creditworthiness. Late payments can seriously damage your credit score - by as much as a hundred points in some cases.
Catching up on your payments is the first step to credit restoration. Consider selling things you don't use, taking a second job or using your tax return to do this - whatever it takes to become current with your payments again will go a long way towards the credit repair you need.
Making sure that you are making your payments on time is how you should begin your process of credit restoration, but you'll also want to get copies of your credit report from the three credit reporting bureaus (TransUnion, Experian and Equifax). Make sure that everything you see on your credit report is accurate. If not, you should write to the bureaus right away to dispute these inaccuracies. The bureaus will have 30 days after receiving your letter to investigate the items in question - this can clear up some inaccurate items on your credit report which could be hurting your credit score.
If you see any debts you had forgotten about on your credit reports, be sure to pay them off.
Look at your credit report the same way that someone you are applying for credit with would. Take a look at your credit limits - if they are maxed out, you'll need to pay these down. Creditors prefer people who not only have sizable lines of credit, but those who have low balances on these lines. Make the largest payments you can in order to lower your balances as you work towards credit restoration.
After paying off credit card balances, many people close the accounts. Don't do this - creditors like to see lines of credit with zero balance and these accounts are better for your credit score than closing them. Doing this can help your credit repair efforts, so remember: pay the cards off but keep them open.
Credit repair can take some time but is well worth the effort. Although it can take more than a year, you can improve your credit score and start to feel a weight lifted from your shoulders. Stay dedicated to reaching your goal and you'll eventually achieve financial freedom.
Making your payments on time is the first and most important step. Regardless of your past, it is your recent credit activity which will make the biggest difference to your creditworthiness. Late payments can seriously damage your credit score - by as much as a hundred points in some cases.
Catching up on your payments is the first step to credit restoration. Consider selling things you don't use, taking a second job or using your tax return to do this - whatever it takes to become current with your payments again will go a long way towards the credit repair you need.
Making sure that you are making your payments on time is how you should begin your process of credit restoration, but you'll also want to get copies of your credit report from the three credit reporting bureaus (TransUnion, Experian and Equifax). Make sure that everything you see on your credit report is accurate. If not, you should write to the bureaus right away to dispute these inaccuracies. The bureaus will have 30 days after receiving your letter to investigate the items in question - this can clear up some inaccurate items on your credit report which could be hurting your credit score.
If you see any debts you had forgotten about on your credit reports, be sure to pay them off.
Look at your credit report the same way that someone you are applying for credit with would. Take a look at your credit limits - if they are maxed out, you'll need to pay these down. Creditors prefer people who not only have sizable lines of credit, but those who have low balances on these lines. Make the largest payments you can in order to lower your balances as you work towards credit restoration.
After paying off credit card balances, many people close the accounts. Don't do this - creditors like to see lines of credit with zero balance and these accounts are better for your credit score than closing them. Doing this can help your credit repair efforts, so remember: pay the cards off but keep them open.
Credit repair can take some time but is well worth the effort. Although it can take more than a year, you can improve your credit score and start to feel a weight lifted from your shoulders. Stay dedicated to reaching your goal and you'll eventually achieve financial freedom.
About the Author:
If your looking for a professional company to handle a credit dispute or are in need of expert credit restoration Carlton Markkrite recommends credit restoration brokers LLC.
posted by Debt Consolidation Loan at
2:00 PM
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