Ways to Fix Credit

2007-03-08 10:33:40

( Financial )



Getting approved for a loan when you have never had any or when you are just recovering from a financial disaster like a bankruptcy can be very difficult and intimidating.

Remember, without a good credit background or history, it is hard to take out a loan or to get approved for a credit card. But without loans or a credit card, you cannot successfully establish a credit history. It may seem like a never ending cycle, but there are a few steps you can take to improve and fix credit image to banks and other lending organizations.

Open a checking or savings account. Having these bank accounts establish that you have funds to pay your bills and that you have something set aside for the future. It establishes that you are part of the financial community.

If you have a lot of student loans, visit a student loan consolidation center. They would help you consolidate your loans and even lower your interest rate if possible to make them more manageable.

Get a copy of your credit report. Major bureaus give them to consumers like you for free once a year. Check the details of your credit report. You have to make sure that it contains accurate information about your accounts along with your payment history and whatever balances you may owe.

Fix credit reports if necessary. You should fix any errors immediately. It may contain outdated or misleading information. Note anything that is incorrect especially negative information like late payments, liens and judgments that are against you. Once you have already listed down all the errors, contact the bureaus and ask them to investigate and/or correct the report.

You can also fix credit reports by adding positive information like details about your past and present employer, you past and present address and your updated phone number. The more details you provide, the more comfortable lenders will feel in extending credit.


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