How to Check and Repair Your Credit
People who never had to do anything with credit scores and then encounter them for the first time when applying for a loan can often be baffled by what they learn. A
or a school, car or mortgage loan, your credit score will help determine your approval.
Even insurance companies charge higher rates to people with poor credit history.
Where To Check Your Credit Score
It is important to know your credit score, particularly if you are planning to apply for a credit card or a loan. You can have more than one credit score and your credit score can vary when you check it. You are entitled to a free credit report from each of the three credit reporting agencies: Equifax, Experian, and TransUnion, once every 12 months. You can also review your credit score for free at www.AnnualCreditReport.com.
The Difference Between no Credit Score and a Bad Credit Score
Credit scores can be determined through factors like your payment history, amounts owed, length of credit history, total debts and recent inquiries. However, there are times when a person has no credit score. This happens when a person has never used a credit card or never had a loan payment to make.
There are also cases of people with bad credit scores. It is harder to improve a bad credit score than it is to build a credit score when you don’t initially have one. Bad credit is defined as a past failure to make your obligated credit payments on time, resulting in a credit score below 620.
record items, and too many inquiries.
Whether you have no credit or bad credit score, you need to work on improving your credit.
Ways To Fix Credit Scores
|secured credit card is backed up by a savings account to be used as collateral on|
People who find themselves in a situation where they have no credit scores are usually advised to apply for a secured credit card to start their credit history. A
cardholder. The key to increase your credit score after obtaining a secured credit
another credit card.
People with bad credit scores can begin the “repairing” process by requesting free credit
company who listed the information on your credit report and wait for their response for at least 45 days. If you were successful, the bureau will make the necessary changes and alert other credit bureaus of the changes. You will be able to receive an updated copy of your credit report.
It is also wise to deal with past dues as it affects 35% of your credit score. There might be instances where some of your accounts are charged off but if you want to get approved for new credits and loans, settle your charged offs. Remember that you are still responsible for your charged off balance and they can make loan applications in the future hard or even impossible to get.
There are several free credit consultation companies who are willing to assist and advise you with ways to improve your credit history.
Applying for a secured credit card is also a good way to quickly rebuild your credit score, as these cards are designed to help people with a credit problem.
Repairing your credit scores cannot happen overnight and some negative marks can remain on your credit report for as long as seven years. That is why it is very important to maintain your credit score.