Thursday, 28 November 2013

Some Simple Repair Tips For Crippled Credit

By Dan Annweiler


Bad credit is a particularly troublesome life problem that can haunt you for years. Bad credit makes it difficult to take advantage of any financial opportunities that arise. That said, it is possible to restore your credit to its former glory and prevent it from being wrecked again.

Develop a plan that works if you are in need of credit repair. Real changes come from commitment to healthy spending habits. Don't buy anything unless you absolutely need it. When considering a purchase, ask yourself if the purchase is necessary and affordable, if you answer yes to both, you should buy it.

A respectable credit score makes it much easier for you to purchase a home with a mortgage. Paying mortgage notes on time will keep your credit scores high. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. This will also be useful in the event that you end up needing to borrow funds.

If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. If the information is correct, it will remain as part of your report, in most cases, for seven years. Know, however, that it is possible to delete information that is actually wrong.

When you're looking to fix your credit, be cautious of credit score repair companies. They may tell you they can remove negative information, but if it's correct, it can not be removed. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Be aware, however, that incorrect information can indeed be erased from your record.

If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.

Do not spend more than you can afford. This takes time and a change in attitude to accomplish. In past years, people used good credit ratings to buy the items that they normally couldn't afford, and they are now currently paying big payments. It is important to look closely at your finances and see what you can actually afford and what you can not.

Bankruptcy should only be viewed as a last resort option. This will have damaging consequences to your credit score for ten years. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren't worth it. If you have filed for bankruptcy in the past, it can be near impossible to obtain a loan.

If you find any errors on your credit report, you should dispute them. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.

As you can plainly see here in this article, getting out of debt and repairing your credit score is more about common sense than you may have realized. The advice in this article can help you get your credit back in good standing.




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