Some Simple Credit Repair Steps to Follow

With the problems that people are having buying homes and cars and other things on credit these days, it has never been so important to have an excellent credit rating. While that may not guarantee you anything in these economic hard times because banks are so unwilling to lend, that won’t always be the case and it is important to make sure that if your credit is in disarray that you take the time to do a little credit repair now as opposed to just leaving it alone.

One of the best ways to do credit repair is to deal with the hear and now as well as the past. Many people are looking at credit accounts that have gone over to collections or even worse yet  judgments. The fact is that there isn’t much you can do about those things outside of paying them off. The damage to your credit has already been done. Eventually, they will cycle off your credit report, but it would be in your best interest to pay them off to reduce your debt to owe ratio.

Secondly establish a good payment history. A good payment history is a key issue in credit repair. In fact it has been estimated that payment history accounts for around 30% or your entire credit score. This may mean you getting a junk credit card with poor terms to start. In any case, you take that card, you charge a little and pay that card off on time in full every month. Make a habit of this and you will slowly see your credit score begin to rise, even if you have collections, charge offs and judgments.

Lastly, check your credit at least once a year if not twice. It will cost you some money to get an extra credit report, but you need to do this because often times, there many mistakes that can be found on a credit report. Sometimes information is on there twice. Other times, the information is completely erroneous. Just do yourself a favor and check it often.

While there are plenty of other credit repair tips you can use, by just doing these basic  steps, you will quickly be on the way to a better and higher credit score sooner rather than later.