Credit Education 101
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Credit Repair Basics

By Janet Lacey
Published: Sunday, September 20th, 2009

This article focuses on the basics of credit repair. Let us start with the most basic element in finance. This is the term credit. Credit basically means you are using some else’s money to pay for your goods. What you are giving in return is a guarantee to repay the money in timely and smaller monthly instalments. You are in essence making a promise to repay the loan efficiently.

At any point, when a person decides to take a loan or buy a credit card, when he decides to make an investment like a buy a house and applies for a mortgage, the creditor is who lends him money for it. The creditor wants to make sure he will get his money back. He will run a check on you and decide how credit worthy are you. He will assess your credit and financial history and decide how much he can lend and at what rates of interests. You want a perfect credit record to ensure you get the best rates and loans. Your house and the locality might depend on your credit history. Your credit history decides whether you get your student loan with low interest rates or not. Thus it is very important to maintain a good credit history.

Credit Repair is the next term we shall focus on. Credit repair is when a person with a bad credit history takes some responsibility and pro actively makes some effort to change it. Credit repair starts with the credit report. A credit report contains all the information a creditor will need to make a decision about you. It has every single detail of your credit history and any financial transactions. Thus, a creditor can make a decision based on these figures. Credit repair involves actively ordering these credit reports yourself and keeping yourself up to date with your financial history and credit information. You can order a credit report from any one of the three main agencies in the United States. These include Experian, Equifax and TransUnion.

The law states that you can get a credit report from each of these three agencies. Order your reports regularly and be familiar with your transactions and financial history. Credit repair is when you see a mistake in your credit report. In such a situation, you should raise a dispute. You should dispute the transaction and the agency will conduct a through investigation for you. This will help your repair your credit and better your credit score.

Credit repair is hard work and discipline. If you have been led to believe there is another option, you are being misled. If the reasons for a poor credit history are some circumstances beyond your control, and you have made amends and are trying to improve your credit, a creditor can be requested to give you a better credit scoring based on your loyalty. Customers with debts and defaulted payments always find it hard to get any credit. However, if the customer gets some stability in his finances with a regular and stable income, he can get better credit scores and options.

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