Is Your Credit Rating A Mess? You Can Fix It by MihailSinapov


									Is Your Credit Rating A Mess? You Can Fix It

Having a poor credit score can make life gloomy. You would do almost
anything if you thought that it would give you a better score and a
chance at getting lower interest rates, and approvals for loans. But you
need to be careful, your desperation to correct your credit could cause
you to make costly mistakes. There are a lot of sensible things that you
can do, as this article will show you, to take back your credit score.

An important tip to consider when working to repair your credit is to be
sure to challenge anything on your credit report that might not be
accurate or fully accurate. The company responsible for the information
given has a certain amount of time to respond to your claim after it is
submitted. The bad mark will eventually be eliminated if the company
fails to respond to your claim.

The first and most important step you should take when trying to repair
credit is to make sure you are paying your bills on time. It is very
important you bring all of your bills up to date and continue to pay them
on time. That is key when trying to better your credit situation.

Even if you have had problems with credit in the past, living a cash-only
lifestyle will not repair your credit. If you want to increase your
credit score, you need to make use of your available credit, but do it
wisely. If you truly don't trust yourself with a credit card, ask to be
an authorized user on a friend or relatives card, but don't hold an
actual card.

A great way that you can achieve a good credit score is to never stop
using credit. Be sure to use your credit cards as much as possible,
provided that you can pay for them. By doing so, credit card companies
will know that you have a good history of paying and will therefore give
you a high credit rating.

A great way to repair your credit fast is to use the existing laws to
your advantage. There is a law that says anyone who requests information
regarding proof of the items that are on your credit report, the credit
bureaus have 30 days to respond. If they do not respond within 30 days
with proof of that item being a valid debt, then it will get removed from
your report.

Give your cards a bit of diversity. Have a credit account from three
different umbrella companies. For example, having a Visa, MasterCard and
Discover, is great. Having three different MasterCard's is not as good.
These companies all report to credit bureaus differently and have
different lending practices, so lenders want to see a variety when
looking at your report.

While repairing your credit is a top priority, you need to know that you
cannot create another credit file, using a second social security or tax-
id number, so steer clear of anyone that suggests this as an option. This
practice is illegal and serious penalties are handed out to those who use
this process.
If you can't get an unsecured credit card or loan, get a prepaid credit
card or secured loan instead. This is a great way to get your credit
repair going by showing you're a trustworthy borrower who will pay their
bills on time. Don't get a card with a huge upfront fee, though, as there
are many options which are reasonably priced.

Credit bureaus have 30 days to investigate and respond to the claim that
you made in your letter disputing their report. So, make a note of when
you mailed the letter. Follow up on the 31st day after the date that they
should have received your letter to ensure something is happening. Give
them a call and find out what file number or account number they may have
set up for the dispute, and continue to check with them weekly to find
out what action is being taken. Use the reminder function on your phone
or computer's calendar.

Don't open too many new accounts at once. More than two new accounts per
year is too many. Opening too many new accounts at one time makes you
look desperate for new credit and can hurt your score. Also, you'll
eventually end up with too many open accounts on your history.

Make sure you pay your credit card payment on time every month. This will
help you maintain a good credit status with that company and will also
help you avoid higher interest fees. Even if you can't pay off the full
balance monthly, at least make the minimum payment.

Your credit score determines a lot about what you can and can't do in
life. It's unfortunate, but even the credit bureaus get it wrong from
time to time, and this can wreak havoc on your life. Studious application
of the advice that you read here can help you to get back on track.

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