How Credit Repair Helps You

When your personal credit is not in perfect shape, it can be a bit disappointing. However, instead of being disheartened, you should be motivated even more to take positive action. Why should you be interested in repairing your personal credit history and credit score?

Good credit can be a great advantage when it comes to matters of finances. If you have good credit, more doors of opportunities will be opened to you. On the other hand, if you have bad credit, your options to finding a good deal can be limited.

It is no secret that bankers and creditors prefer customers with impressive credit over customers who are credit challenged. If you have a low score, a creditor may consider you as a high risk borrower, and might even refuse to grant approval. Many lending companies and financial organizations have strict credit standards and if you’re looking for a great deal, you should only work with the best lenders in the market.

Aside from getting your credit application quickly approved, having good credit strengthens your negotiating power. A potential lender is more likely to give a lower interest rate or give you a flexible repayment term if you are regarded as a credit worthy borrower.

Do you have bad credit? If so, then it’s about time to do something about it. You’ll be glad to know that there are positive steps you can do to get yourself out of bad credit. Consider these practical credit repair suggestions:

Check your personal report. You can obtain a free copy of your annual credit report, issued by the three major credit bureaus from Consumers are entitled to a free report annually so if you have not yet receive your free report this year, then you should definitely take advantage of this privilege.

Credit report errors can be fixed. You should know that errors in your credit report can be corrected if you will send a credit dispute letter to the bureau that issued your report. Furthermore, outdated information such a record of bankruptcy or foreclosure older than seven years should be erased from your report. By getting these errors fixed, you can make a big improvement with your current credit rating.

Pay all your bills on time. Be sure to submit all your payments on time as even one late payment can pull down your score even more. Do you have past due debts? If yes, do your best to pay them off quickly. If you’re having trouble paying off your debts at once, consider the next credit repair step.

Negotiate your debts. You should not hesitate speaking with your creditor about your debts. Instead ignoring the bills and letting your debt pile up due to the monthly interest rate charges and late fees, you should work out a new repayment arrangement with your creditor. Most creditors would be glad to modify their terms especially if the borrower is experiencing financial crisis due to circumstances beyond his/her control.

Seek professional credit repair help. Finally, you may also consider getting advice from a trusted credit counseling agency nearest to you. Check out the NFCC (National Foundation for Credit Counseling) for a list of credit repair agencies that offer services for free or at a small charge.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2011
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