My Credit Detail

Fixing a bad credit score is becoming increasingly important today. Getting any type of credit is getting harder and interest rates are becoming increasingly punitive for those with bad credit. If that wasn’t enough prices are rising, seemingly every week, so it is becoming very difficult to live without a decent line of credit.

The Basics Of Your Credit Score

Everyone will calculate your credit score slightly differently, but the basics are the same - you need to pay attention to the following five factors:

* The history of your credit payments

* The amounts your owe on lines of credit

* How long you have had credit accounts

* How much new credit you have and have applied for

* Which types of credit you have

First Steps To Repairing Credit

The very first thing to do is get a copy of your credit report. With that information you will be able to tell where you stand. A significant proportion of credit reports contain errors. There may also be negative entries that you can get removed - and you want to make sure that all the positive things are being reported.

Choosing a Credit Repair Kit or a Credit Repair Company
Take a look at your credit report - are there positive things on it? How many negative things are on it that need removing? How many debts that you are still paying are on your report.

Essentially if your credit report looks fairly simple and you have the time and patience then you need to get a good kit. A good Credit Repair kit will educate you about credit scoring and credit repair and give you all the letters you need and guidance about when and how to use them.

If it looks as if you have more complicated problems, which could include debts still to be paid then you may be better off with a credit repair company. Reputable companies will offer you a free consultation to start with so that they can tell you how much they can help you. A good company can also negotiate on your behalf with creditors for reduced payments and lower interest rates.

So the choice is yours. If you are confident that you can deal with it yourself then get a good credit repair kit. If you have complex problems - or simply lack the time and patience then hire a company.

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If you have bad credit, you know how it can be a nightmare. A bad credit score can negatively affect your life in many ways. The national credit score is about 675. People with better credit scores can get the best interest rates on loans. Those with lower scores, however, may have to pay higher interest rates and provide additional documentation. A low credit score also makes it difficult to get a credit card. People with bad credit not only have to pay higher rates but also have lower credit limits on their cards. A low credit score can also affect you in unexpected ways. For example, employers are generally allowed to check the credit score of prospective employees. In addition, landlords, with your consent, can use your credit score to decide whether or not to rent to you.

But how can you repair your credit?

• Get a yearly copy of your credit report to catch any errors. The three nationwide consumer reporting companies, Equifax, Experian, and TransUnion, have set up a website, www.annualcreditreport.com, to request your free credit report. If you find an error, you can file a dispute online, by phone, or by letter. The credit bureaus are required to respond within 30 days and correct the mistake. Free credit reports are available once every 12 months.
• Pay all of your bills on time. Payments that are more than 30 days late can lower your credit rating.
• Avoid bankruptcies, tax liens, and collections. Bankruptcies stay on your credit report for up to 10 years. Even if you pay off tax liens and collections, they stay on your record for up to 7 years.
• Call the creditors and arrange a repayment schedule that fits your budget. Be sure, though, to make these payments on time. Skipped or lower payments will still be reported against you. If you’re uncomfortable calling creditors yourself, consumer credit agencies are available to help you.
• Keep the balance on your credit cards low, preferable under 25 percent. In addition, try to pay off the balance at the end of the month. This can improve you credit score substantially.
• Open up a secured credit card. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Make sure to pay off the balance on this card each month.

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