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Credit Education > Credit Repair > The advantages of repairing your credit

The advantages of repairing your credit

By Janet Lacey
Published: Saturday, October 31st, 2009

Credit is the most basic term in American finance structure. Put very simply, credit is when you borrow money off a creditor to buy some goods or services of your choice. Borrowing the credit also includes a promise to repay the loan. The repayment is to be in a timely manner and in the form of instalments with pre decided amounts. If you have had a loan or a mortgage in your past, that is a credit. Even a student loan or a credit card is a credit. Credit reports will have information regarding a store discount card as well. Therefore, if you want a new credit and the creditor wants to check you financial background, he will naturally check on your past credits. All the information regarding your past credits will be available on the credit report.

A credit report has every detail regarding any of your past credits. If you have been very punctual with your payments and past credits, you will have a great credit score. This will ensure you get most of the credits you want. However, if you have defaulted on a few payments or been in late in payments, this will show up too and affect your score. There might even be bankruptcy declarations which will affect your credit score even more. Some of the information on your credit report can go as far back as seven years or some times even more. You will therefore, need a spotless credit report to ensure you get your credits today.

You will need to keep a close watch on your credit report. There are three main agencies producing credit reports in the United States today. These three agencies are bound by the law to provide you with a free credit report each, every year. Make use of this opportunity and order the reports in a timely manner. Take care to order through the government agencies only. You might be charged if you approach the agency directly. Once you get these reports, follow them carefully. Keep a tab on each of these reports and their entries. If you find a transaction you do not agree with, you can dispute it.

To raise a dispute, circle the entries you do not agree with. Write a letter requesting an immediate investigation into the enquiry. You can also write a short paragraph on each entry to give point of view. You should send the request letter along in certified mail. If this letter is received by the agency, you will have proof with you that it has reached the agency. This is the basic process. It is, however, not as simple as it appears on paper. The basic financial structure is very complex and ordinary people usually get tired with it. It is best to choose a credit repair firm .These people work on these investigations everyday and know the ins and outs of the system. They will be a lot more efficient than the common man. They charge very little and make the process a lot more efficient and quick.

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