One’s credit history tells lenders about financial behaviors that can result in a “good” or “bad” credit rating. Some questions a lender might ask a person include how long he has used credit, if he pays his bills on time, and whether or not he’s opened several credit cards in a short period of time. If one has not managed his money well, he may have to do some bad credit history repair. The following will delve into ways to do this so one can be welcomed back into the world of good credit.
Phoenix, AZ -- (SBWIRE) -- 12/12/2012 -- The first step to help one repair bad credit history is to get a copy of his credit report from one of the Big Three reporting agencies (Equifax, TransUnion, and Experian) and go over it very carefully, searching for mistakes or inaccuracies. If there are any, send written letters of dispute to the bureaus. They have 30 days after receiving the letters to investigate the claims and make a decision about them. It is quite likely that at least one of the disputed items will be removed from the report, improving one’s score. Another way to repair a poor credit history is to pay all bills on time, every month. Remember, late payments and collection accounts do major damage to a credit rating, so stay on top of the bills to avoid them. Try very hard to keep balances low on charge cards and other “revolving” credit as high amounts of money owed can hurt a credit score.
Other ways to accomplish bad credit history repair include carefully applying for new credit accounts. An individual doesn’t want to get in over his head, which is likely to be why his credit score is low, so taking out small loans and maintaining good payment practices is a good place to start. Don’t move debt around, pay it off. Contact creditors directly to arrange for mutually acceptable repayment plans and then stick to them. Also, and very importantly, protect credit information from identity theft or fraud. Easy, common sense ways to do this are by carrying charge cards in a separate place on one’s person. For example, place the cards in their own small pouch and put it in a front pocket rather than in a purse. Men, do not carry wallets in a rear pocket; putting it in a front or inside jacket pocket makes it much harder for it to be pick-pocketed. Keep credit cards covered when using them so “shoulder surfers” cannot steal the numbers. Never, ever carry one’s Social Security card on one’s person.
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