How to fix credit score

Posted by tedmark on January 20th, 2014

Late payments, high credit card limits that you do not need, bankruptcies, paid tax liens can haunt you for a very long time, unless you do not do something to repair your credit history and get your good old name back.

The first thing to do is to verify your annual credit reports sent by the three existing credit bureaus to your address. Check if there are any errors or obsolete information able to stop you from getting the loan you want.

If incorrect or inaccurate details are found, contact a repair agency that can provide you with legal credit repair and ask the specialists there to help you correct or eliminate some of the details in your credit history.

A credit repair agency requires the same credit reports that you have checked as well, to identify the error or incorrect detail that you want removed or corrected. After identifying the potential problem, the agency starts to communicate with credit bureaus or creditors, trying to solve it.

However, a repair agency would never be able to eliminate the negative effect of a loan payment that is 30 days late and that a client had to make two or three months ago. To keep the negative consequences of a late payment at a distance, debtors have to repay their debts on time.

In fact, all of their bills have to be paid within the time limits specified by those who issued the bills, otherwise the unpaid bills would carry the same effect as an unpaid installment. Once again, a repair agency is not able to help people who are consistently late with their payments.

Another way to fix credit score is to reduce the number of credit cards you own and also their limits. When creditors check your credit history and see you have a very high credit limit, they become wary in granting you another loan, considering that you might not have the possibility to repay your debt.

And while this judgment is correct in the case of those people who have actually used all the money on their credit card and are debtors now, it can affect people who have many credit cards and high limits, but who have never used them.

Avoiding bankruptcies and tax liens is another safe way to stay clear of bad credit history. Bankruptcy is the impossibility of a person or company to repay their debts. A tax lien is a form of security interest imposed by law.

If, after you fix credit score, you still do not have the income needed to get the amount of money you want, ask a friend or family member to be your co-debtor and help you get more money from the bank. Be careful though, your co-debtor must have a clean credit history, otherwise his help could be inconvenient.

Looking to fix credit score and be able to obtain that loan you need? There are steps that you can follow to improve your credit history and regain your good reputation. The easiest and fastest way is to contact a reliable credit repair organization to help you start anew. For specialists in credit solutions, we invite you to contact us.