Save Money And Fix Your Own Credit
Having a low credit score can hurt you in a number of different ways
. Here are some of the disadvantages of having a low credit score. You will have trouble getting approved for anything. Whenever you have a low credit score, you will find that it is difficult to get approved for loans or credit.
Lenders and credit card companies are going to be very skeptical about giving you a loan or credit. Another disadvantage of having a low credit score is that you will have to pay higher interest rates.
Whenever you have a low credit score, this means that you represent a higher amount of risk for creditors. In order to take you on as a customer, the lender has to increase the amount of interest that they charge you. This means that you could end up with higher monthly payments and more money being paid over the life of the loan.
When you have a low credit score, you will also find that many businesses are going to require you to put down a high deposit to provide you with service. For example, whenever you get a cell phone, the provider might require you to put down $200 because of your bad credit score.
If you have ever been turned down for a loan or even insurance that you needed very badly then you have more than likely wished you could fix your credit quickly. But you are probably very confused and clueless about what's involved in fixing your credit and doing self credit repair.
The first thing that needs to be done before you can start to improve your credit is find out exactly why your FICO scores are low. The only way that you can do this is to get a copy of your credit report and review it for errors and negative information that will cause your credit scores to drop.
When looking over your credit report you want to look first for errors. Errors on your report are accounts that have information that is not accurate. It could be that a late payment is recorded when there never was a late payment, or even the limit is showing wrong and the report thinks that your balance is way over your limit.
Derogatory information is information that is negative in nature and true. This information is often late payments, charged of accounts, collections, judgments and bankruptcies. All of these will pull your credit score down fast. First make a list of these accounts so they are separated from your good accounts.
Make sure that you arrange these accounts so that the oldest account is listed first and the newest is listed last. Next you will need to write a credit dispute letter for the first two accounts to each credit bureau that is reporting negative information on this account.
This is important because there are three bureaus and they all report differently so you want to make sure that you are not sending a dispute letter to a bureau that is not reporting negatively about you!
Many people look at rebuilding credit as a process that takes many years. However, if you take the proper steps, you can start to rebuild your credit within a very short period of time. Here are a few steps that you should take in order to start rebuilding your credit in six months. Many people that have bad credit mistakenly believe that you should avoid using credit again in the future.
If you want to rebuild your credit score, you are going to have to keep using credit. You need to open some credit accounts and use your credit limits sparingly. Otherwise, you will not be able to rebuild any credit quickly.
This can seem quite scary, especially if you have a tendency to rack up debt. But with a little discipline, you can rebuild your credit this way. One tip is to pay down all your debt to 30% of the credit limit. Do not pay off everything or close all accounts!
This can harm your credit even more. If you can keep at least two or three credit cards open with small balances that is a start. To use credit to help build a good credit history without going back into debt is quite easy, as mentioned before, with some discipline.
A good idea is to use the credit card for gas or groceries and make that payment every month. This shows that you are using credit and paying back consistently and that you are a good customer.
by: Ronald Pedactor
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