If you already have bad credit, you know the importance of improving your credit score. There are companies that will charge you hundreds of dollars to help fix your credit. But if you are willing to invest the time, do your research, read the right books like Mastering Credit Repair. You'll save yourself hundreds of dollars in expenses.
Monitor your Free Credit Report Improve your credit score - http://ficofreecreditreport.info/
Bad credit refers to having a poor credit rating. A credit score is defined as a statistical method of assessing an applicant's credit worthiness. Making late payments, skipping payments, and exceeding card limits or declaring bankruptcy will damage your credit rating. Your creditors will report all of these actions to the credit reporting agencies. Your creditors will report late payment, nonpayment, and so on even if your non-payment of an account was on purpose or due to financial hardship.
If you find yourself in a position where it is difficult to make payment to your creditor? You should contact them and let them know of your difficulty in making payment. Many lenders are willing to work with you on making payments. This will help maintain your credit rating until you are able to begin to making larger payments.
Raising your credit score is possible. Lenders are willing to give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. You do not want your credit score to falls under 620. It will make it difficult for you to obtain loans and credit cards. Here are some suggestions on raising your credit score.
1. Correct obvious mistakes.
Check your credit reports from all three credit bureaus for accuracy once a year. Changing a mistake on your report can take 30 days to three months, or more.
2. Pay Your Bills on Time
Your payment history makes up 35% of your total credit score. Missing just one payment on can really hurt your credit score. Paying your bills on time will greatly help improve your credit rating and score.
3. Reduce your credit card balances.
Your credit card balance needs to be below 25% of your credit line.
Repair Credit by Using Banks
Contact 3 banks and find out what the minimum loan is that the bank can give out. The loan must be for more than 6 months. Then open a CD for that exact amount for a year.
For example, if Bank A minimum loan is $2000. Then open a bank Certificate of Deposit (CD) for $2000.
Apply for a secure loan for the exact amount of the CD. You will be using the CD has collateral to secure the loan. Place the money from the loan into a saving account. Now each month withdraw money from the saving account to repay your loan.
Do not use the money borrowed for anything else but to repay the loan.
Repeat Step 1 and 2 for the next two banks.
Remember that the loans have to be longer than 6 months for it to show on your credit report.
Monitor your Free Credit Report Improve your credit score - http://ficofreecreditreport.info
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