A bad credit report can be a deterring factor in a number of situations. Credit reports are keenly observed by the banks and lending organizations when they are applied to for any kind of loan. A credit report is in a way a reflection of your borrowing and payment history. Therefore, when you apply for a new loan, you are held to account of justification should there be any irregularities or discrepancies in your credit record. They reveal information right from the number of loans you currently are indebted to pay, to the number of times, if any; you have defaulted on your monthly payments to cover for your debts.
Based on your past pattern of borrowing and repaying, you are granted further credit and the rate of interest for your future loans can also be decided by taking into account your previous credit history. Therefore, it comes as no surprise that a lot of people are keen on credit repair in order to improve their credit score. This helps them in their future financial endeavors immensely.
If you are one of those who have realized that your credit report needs some repair, you should first educate yourself on what exactly you need to work on to give your credit report a better and brighter look. Here are a few things that you might want to consider when trying to get your credit report fixed. These are some suggestions that may be helpful, but to each his own, so focus on those things first on your credit report that need the most attention.
- Check your report thoroughly for any errors in calculation or misinformation. You may be surprised on the inclusion of a few entries and the exclusion of a few. If you notice any such mistakes in your report, then getting them corrected is not a problem. All you have to do is submit a credit report dispute to get the mistakes corrected. This issue may seem small but should not be treated in such a manner. These errors may cause big dents in your credit report.
- Payment History: There may be records of your late payments to creditors. Some of them may be as late as 90 days which is considered very delinquent. The things that hurt your credit report the hardest are late payments towards settling debts. If you have outstanding payments clear them, preferably before thirty days but under all conditions don’t let them cross the 90 day mark after they are due. Those late payments which have already appeared on your report need to be washed away. This can be done by negotiating with past lenders to take these late payment charges off their records so that they do not appear on your credit report.
- Debt Level: This is the second most important thing in terms of power to dent your credit report. Credit balances should be maintained at 30% of the credit limit. Work on over limit credit balances and bring them under the credit limit.