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Credit Education > Credit Repair > Repairing Your Credit – The Step By Step Guide

Repairing Your Credit – The Step By Step Guide

By Janet Lacey
Published: Wednesday, May 14th, 2014

The credit score of every person plays a key role in the financial life. The reason behind is that the creditors always look at the credit scores to decide whether an applicant is actually eligible for the credit and if yes then at what rate of interest.

So, in case you have gone through a huge financial breakdown that has damaged the credit standing and if you want to start over, then going through the credit repair procedure is a must. Without having a good credit record, the creditors will not only turn down your loan applications, but you will also have a huge trouble with the ever increasing rates of the credit cards.

After getting the confirmation that the credit providers have listed default on your credit record, you will really be able to perform the credit repair process. Now let’s have a detailed look at the process.

  • Get a copy of the credit report: First and foremost, you should get a copy of your credit report from any of the credit reference agencies. Then go through the report and check the areas that need to be repaired to improve the credit record.
  • Keep the balance low: A number of people are unaware of the fact that the debt to their credit limit ratio comprises of around 30% of their total credit score. You can keep this percentage low by not running up any big balance. If it is not possible, then request your credit card company to raise your credit limit. But be careful and never use that extra credit limit.
  • Pay the bills on time: Your record of paying the bills on time can be one of the most important factors in determining your credit score. So, never be late in paying the bills. If you find in the credit report that only a minimum amount is due on the credit card bill, then pay it now.
  • Build a strong financial history: The next step to credit repair is to have a strong credit history. Improve your bank details as this can judge 15% of the credit score. In case you have any unused credit or debit card with you, never cancel those. Otherwise the record of those cards will be wiped off from your financial record. The longer your financial history will be the creditors will be that much confident about your financial behavior.

Apart from these tips, another most important thing is that you never make too many applications for credits within a short time or never mix your loans or credit cards.

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