Credit Repairs

Your credit score influences decisions that banks, lending institutions and even employers make about approving loan, finance and even job applications. If your score is 600 or less, you should consider repairing your credit. Every time you miss or skip a payment, your credit score suffers.

It may or may not mean that you can’t get a loan or finance, but you will have higher interest rates.

The easiest way to repair your credit is to pay the outstanding debts. Unfortunately, this can take months if not years, depending on how much debt you have.

Your first step should be to get a copy of your credit report, so you can assess the problem before deciding how best to fix it. There are three major companies that can give you your credit report, being Equifax, Experian, and Trans Union.

If your report shows that you have debts that you know you have paid, provide documentation to support that. If you have outstanding debts, you need to pay them off in full to get a settlement letter. You may have the option of a debt consolidation package so that you can get all your debts into a single loan. You’ll still need to repay the loan, but your debts will be paid. This will give you lower interest rates, and you can repay it quickly if you pay regularly each month.

A credit counselor might can help you if you don’t want to apply for a loan. It is generally recommended to settle any accounts in collections first. Most places will accept lower repayment over a longer time. Next, pay off credit cards. If not already done, ask the company to suspend cards.

If the recent recession has done nothing else, it has certainly taught us all to be more careful with our money. You must repair old debts, even if you’ve already decided to change your ways of spending. Then you need to focus on avoiding a repeat of the situation. Keep credit cards for emergencies only – and that is not the last pair of shoes in your size on sale! Start buying with cash and closing store cards. This way, you know for sure that you can afford it.

Repairing your credit may take a while, but it will be well worth it. You will need to finance things in the future, but you must repair your credit to get the loan.

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