Repairing Your Credit Score

By Steven J. Talrechi in Debt Consolidation on April 7th, 2008

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by Steven J. Talrechi

Thank goodness for the law! The laws in the United States - and in many countries - give individuals the right to contest their credit reports if they can prove that there are inacurracies. One’s credit score is influenced by one’s credit report. If you have sufficient proof, then repairing your credit score is as easy as 1-2-3.

Having good credit is all-important these days. So if you do find a problem on your report, you have to take action right away. Give the credit bureau all the relevant documentation you can get a hold of, this will make the process of repairing your credit much easier. Don’t just call the credit bureau and scream at them, this isn’t going to help you or anyone else. Follow the hints below for a better way to go about repairing your credit score.

Most importantly, do not apply for any credit cards, loans, etc. while your credit score is in poor shape. Not only will you likely be denied, but these attempts will reflect poorly on your credit score.

Don’t let bills pile up. Paying your bills immediately can keep you out of really big trouble with your credit. If you get behind, it hurts your credit score and can be very difficult to get caught up again. No matter how tempting it may be to put off paying that bill for a month, don’t do it.

Pay more than the minimum monthly payments on your credit card or cards. By not overextending your credit limit and making these payments, you’ll be doing yourself a big favor.

Go for debt consolidation - if you’re feeling choked by a whole slew of interest rates, ask your financial adviser if it makes sense to consolidate all your loans into one. That way you pay one loan with one interest rate.

Pay cash whenever possible. If you use cash rather than plastic, you won’t be able to spend money that isn’t there, and you’ll avoid going deeper into debt.

Try to build a relationship with your bank and other financial people involved. With a bond of understanding and trust built, your financial service providers may be more willing to give you a break on minor credit issues.

Credit is very important, but also can be ruined before you even see it coming. If your credit is in need of repair, you need to get to work doing so immediately. Make all of your payments on time and save proof of this. You can send this documentation to credit bureaus when needed.

Insist on a correction. You owe that much to yourself!

About the Author:

Steven J. Talrechi has been monitoring credit reports and credit reporting practices for the last ten years. He is an expert in second chance banking and helping individuals get a new bank account when traditional institutions turn them down.