How To Repair Credit

Fixing Bad Credit

The credit reporting system is not perfect and because of errors, inaccuracies and mistakes, many consumers do not have accurate credit scores and reports, and that affects the way lenders and credit issuers review your credit risk. If this is you, a bad credit report will cost you money. You can fix your credit, and there are consumer laws in place to protect you.

Fixing your credit is more than just about fixing your credit score. It is about repairing the errors so that your credit is a true and accurate reflection of your credit history. Every error, outdated and incomplete account history should be carefully reviewed, verified and corrected. It requires diligence and thoroughness in order to get the job done correctly. Inaccurate, unverifiable and incomplete information must be deleted, removed, updated or re-characterized by the credit bureaus and creditors.

Don’t Limit Your Options

Most people don’t even think about their credit score until they go to make a purchase that requires financing.   Then suddenly they are faced with the embarrassment of having the car salesman or mortgage broker tell them their credit score is not in the best shape. Suddenly, they tell you your credit score and you are left wondering what happened.

In order to build a good credit score ( and improve your credit over time it is important to understand and avoid the mistakes that damage your credit history and score. Credit issues can stay on your credit history for many, many years.

You can negatively affect your credit report and credit score with missed payments, late payments, collections, repossessions, bankruptcy, tax liens, judgments, foreclosures and charge-offs.

Please don’t underestimate the importance of receiving and reviewing your credit reports on a regular basis. Errors and other inaccuracies can also drag down a credit score and can be on your credit history without you even knowing.

Long-Term Effects

These negative items can stay on your credit report for many years to come. Understandably, lenders are hesitant to loan people with questionable credit histories and if they do, it may be at significantly higher interest rates. It is possible to put your bad credit woes behind you, but it takes time, hard work and commitment.