Do It Yourself Credit Repair

Bad credit is like a bad habit. The habit doesn’t even exist at first and then it slowly snowballs. Credit scores start off high and gradually lower as consumers lose hope that credit repair is even possible. A small blemish often leads to bigger problems. Sometimes small credit issues can feel overwhelming and avoidance often occurs. If taken control of and stopped in its tracks, credit ruin can be avoided.

Here are some of the most helpful tips I can give on maintaining good credit, as well as repairing your credit yourself.

1. A great way to improve your credit score easily is to pay your bills on time consistently. Payment history is one of the key factors used to establish the credit score. One late payment can greatly affect it. Many people do not know however, that a late payment will most usually only show up on your credit report if it is more than 30 days late. Not just late in general. Additionally, payments that are more than 30 days late, 60 days late, 90 days late, etc. are huge hits on the score too. Payments must be made on time for good credit history to be established.

2. If you cannot pay some of your bills, or your interest rates on your credit cards are too high and you cannot afford the monthly payments, ask for a lower interest rate. Yes, the creditor may say no, but you are no worse off than you started. A lower rate can save you money every month and allow you to get out of debt sooner. Often times creditors will lower your interest rate if you are in good standing with them, or they may put you on a performance plan that if adhered to you are rewarded with the decrease in rate.

3. This step is not as easy to implement because it requires having the ability to pay down some debts. It is recommended to keep balances on any credit line from 10-30% of the limit. For example if you have a credit card with a $5,000 limit you should never owe more than about $1,500 on it.

The reporting agencies, Equifax, Transunion and Experian all look at high available balances favorably. An availability of funds proves that you are not reliant heavily on that card for everyday use and if a default ever occurred these liabilities would not really stand in the way of say, a mortgage company, foreclosing or putting a lien on property.

4. If you have collection accounts reporting on your credit report, determine how long they have been reporting. A good credit report will often tell you the date when the collection was filed. If the collection has been reporting for more than 7 years you can write to the appropriate credit reporting agency and ask that the item be removed from your report. Of course write a similar letter for any of the accounts on your credit report that are not yours. This occurs more often than people may think, do to common factors as similar names or social security numbers. If these accounts cannot be proved to be yours than the credit agency reporting the incorrect information must remove it from your credit report within 45 days of receipt of your request.

5. One last piece of advice for a quick credit fix. If you are an authorized user on someone else’s credit card, that credit card should not be listed on your credit report. The person whose name is on the account should be the only one whose report this is listed on.(Unless of course this person has a great account history and you believe that it may be helping your credit score.) If the owner of the account has a poor payment history or high balances, removing this account from your report would be very beneficial.

I hope that some of these tips will be useful to those of you out there in need of credit repair for one reason or another. Once you’re on the road to credit recovery, come back and visit our site so that we can help you get the Home, Refinance, Auto, or Student Loan that you need today!

By Melissa Fish Editor at www.Estreetloans.com

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