How to Repair a Bad Credit History?
How to Repair a Bad Credit History?
Your credit history is a reflection of your borrowing and repayment, and there are three main credit reporting bureaus in the US. They are TransUnion, Experian, and Equifax, and it’s their job to collect business and personal credit histories, analyze that information, and prepare credit reports for consumers. Your credit score can be anywhere between 300 and 850, and that number is a measure of your creditworthiness. A score below 600 means that someone has bad credit, and your payment history, debt-to-income ratio, and amount of revolving credit are key to keeping your score high. There are sites online that allow you to get free access to your credit score. Also, you are entitled by law to one free credit report per year from each of the three credit bureaus. When you request your report, you’ll have to enter in your name, address, Social Security number, and birthdate. Select all three credit bureaus, and you’ll be redirected to each site in turn to get your credit reports. When you get the reports, check them for inaccuracies. Things like extra accounts or erroneously listed late payments can damage your credit. You can report inaccurate items by filling out a form online, or by calling the toll-free number on the credit report. This step will take some patience, because it can take months for inaccurate items to be removed from a person’s credit report. To further repair your credit history, you should pay at least the minimum payment and pay on time each month. Repairing your credit history after it has been damaged is a long process, but having good credit will make it a lot easier for you to get approved for a car or a home loan, to get a new apartment, or even a new job. | |