Do you have bad credit? Are you searching for information on bad credit repair or effective ways to clean up your credit? Perhaps you’re wondering how in the world to get rid of bad credit and have a clean clear credit report. If you’d like to learn how to remove negative items from report, then keep reading.
Many people are not aware of the effects of bad credit on our lives. When you have bad credit it actually costs more to live. Bad credit can make it extremely difficult to gain access to some of the better things in life. It makes it difficult to get approved for a car loan, a home loan, a credit card or other financing. Or if you do get financing, you may be subjected to very high interest rates and several other unnecessary conditions.
Once you have a bad credit rating you will realize just how it can derail your financial plans. So it’s very important that you repair your credit if you have bad credit.
As a first step to credit repair, you need to get a copy of your credit report and see what information is being distributed about you. You can obtain your report by contacting the credit bureau that keeps your record.
When you get your report, review it carefully. List all incorrect information you find. After you have noted all incorrect or inaccurate entries that have been made on your report, send a letter of dispute to the credit bureau that has sent you the report. If you have any documentation to back up your claim, you should send it in also. Be sure to keep copies of all documents you send.
When the credit bureau receives your letter of dispute, they must investigate it and send you written results of their investigation. If the disputed item cannot be reverified it must be deleted. If the creditor does not respond within a reasonable period of time, then the disputed item must be removed from your report.
If you do not agree with the results of the investigation, you can contact the creditor who reported the information and demand that the negative entry be deleted. If you do owe money, then it’s time to start a negotiation with the creditor. You can offer them a fraction of the amount owed provided they delete the negative information from your report.
After you’ve erased negative items, you can start adding positive information. You can obtain a secured credit card or take out a secured loan at a bank. Also, gas station credit cards and department store charge cards are a great way to add positive accounts to your file. Be sure to pay your bills on time. That way, you will show that you can handle credit responsibly.
The process of self credit repair is simple if you have the right plan to follow. To be sure you do it the right way you should get a proven credit repair guide that will show you the step by step process you need to fix bad credit, erase negative items that are on your report, and add positive items on your report.
Once you have a good, reliable guide all you need to do is follow the easy, step-by-step instructions, and start repairing your credit immediately. A good credit repair guide is your ticket to getting your credit back on track.
If you are serious about erasing negative items on your report, rebuilding a positive rating, and enjoying the good life, then repairing your credit is a must.
By: Conleth Onu
Posts Tagged ‘Home Loan’
Credit Repair – From C to A Paper
October 2nd, 2009
If you’ve ever applied for a home loan with less than stellar credit, you know how much extra you have to pay. Even though it can take some time, credit repair is definitely worth pursuing.
Credit Scores
When considering your application for a home loan, a financial institution looks at your credit and assigns it a score. In the industry, these scores are loosely referred to as a type of paper. The best scores equate to “A” paper, while lower scores are graded just like in school, to wit, “B”, “C”, “D” and “Oh, my god” paper. If you have “A” paper, you can expect to get the best deal, while lower grades are known as sub-prime borrowers.
Credit Repair
Credit repair is important because even small movements in your credit score can move you from one score to the next. If you move from B paper to A paper, you will save thousands of dollars in lower interest rates. A credit score of roughly 680 is considered to be A paper. If you have a score of 670, credit repair can bump you to 685 and save tens of thousands of dollars. In short, you want to make the effort to repair your credit whenever possible. Don’t just sit and suffer with sub-prime loans.
To repair credit, there are simple and not so simple steps that can be taken. Let’s take a look at some.
Credit Card Debt Ratios
Believe it or not, you can improve your credit scores by simply moving credit card balances around. A credit card with no balance actually doesn’t help you much if you have another card that is maxed out. If you shift the debt evenly among all credit cards, you credit score should increase. This has to do with something called your ratio of debt to available credit. It is a loophole of sorts, so take advantage of it.
Closing Accounts
Don’t! Many people will close credit card or other borrowing accounts when they are done with them. This is a huge mistake. First, it hurts you because you’ve reduced the available credit portion of your debt to available credit ratio. Second, you lose a record of your long-term credit payment history for the account. Lenders like to see these, so suck it up and keep the account open.
Inquiries
As strange as it sounds, inquiries on your credit report hurt you. Try to eliminate these by challenging them through the Fair Credit Reporting Act and limiting the credit applications you pursue. You can challenge inquiries by ordering copies of your credit reports and following the instructions on the report. Make sure to do this for all three credit reporting agencies – Equifax, Experian and Transunion.
Check Your Report
The big three credit agencies must report to Congress each year. Each year they report an astonishing number of problems with their systems. This can affect you since accounts will appear that are not yours. If these accounts have problems, your credit score goes down. Make sure you check your report before applying for a loan. You want to deal with these issues before you are in escrow.
Borrowing large sums of money for a home loan can be intimidating. Avoid acting like a dear in the headlights. Deal with your credit issues and save yourself thousands in payments.
By: Sergio Haros
