Now that the requirement for obtaining a mortgage are tighter than ever before, it's vital that you have a good credit score. You can repair your credit after making some financial missteps, but the best thing to do is to keep your credit in good shape from the word go. If you are a new credit account holder or already have along credit history, there are some things which can help you to maintain; or restore good credit.
One of the most important things to know about your credit score is that about 35% of it is based on your payment history. Your credit report goes back seven years; but it is the two most recent years which potential creditors will be most concerned with. How late your payments are makes a big difference. A payment which is 30 days late is not too serious, but one which is more than 90 days late is a big problem. Remember, it's easier to keep your account in good shape than it is to repair it.
Try to maintain various types of credit accounts in good standing. For example, have a credit card which has a low or no balance, an installment loan (a car loan, for instance) and if you can, a mortgage as well. When creditors see that you can effectively manage different types of credit, they are more likely to extend you credit.
Never apply for credit which you do not need. Having too many accounts or making too many applications can negatively impact your credit score. You may also be tempted to use these accounts and get yourself into trouble. Try to avoid the need for credit restoration by only having accounts you actually need.
Have a look at your credit report and check it to be sure that everything there is accurate ? this is a good beginning to any credit restoration plan. If the credit bureau can't prove that an account is yours, you can have it taken off of your report. If you see small debts which you can afford to repay, pay these off.
If there are larger amounts, get in touch with the creditor and try to make a settlement with them. They will often take as much as half of the balance off if you are willing to work with them to repay the debt. While this settlement will still show on your credit report, it's a lot better than having a debt on your report.
Even if you play by all the rules, things will happen ? you may still find your credit being damaged due to factors beyond your control. Don't let it get you down. You can repair your credit; just remember that credit restoration can take time. If you keep your eyes on your goal, you will be able to repair your credit. - 21151
One of the most important things to know about your credit score is that about 35% of it is based on your payment history. Your credit report goes back seven years; but it is the two most recent years which potential creditors will be most concerned with. How late your payments are makes a big difference. A payment which is 30 days late is not too serious, but one which is more than 90 days late is a big problem. Remember, it's easier to keep your account in good shape than it is to repair it.
Try to maintain various types of credit accounts in good standing. For example, have a credit card which has a low or no balance, an installment loan (a car loan, for instance) and if you can, a mortgage as well. When creditors see that you can effectively manage different types of credit, they are more likely to extend you credit.
Never apply for credit which you do not need. Having too many accounts or making too many applications can negatively impact your credit score. You may also be tempted to use these accounts and get yourself into trouble. Try to avoid the need for credit restoration by only having accounts you actually need.
Have a look at your credit report and check it to be sure that everything there is accurate ? this is a good beginning to any credit restoration plan. If the credit bureau can't prove that an account is yours, you can have it taken off of your report. If you see small debts which you can afford to repay, pay these off.
If there are larger amounts, get in touch with the creditor and try to make a settlement with them. They will often take as much as half of the balance off if you are willing to work with them to repay the debt. While this settlement will still show on your credit report, it's a lot better than having a debt on your report.
Even if you play by all the rules, things will happen ? you may still find your credit being damaged due to factors beyond your control. Don't let it get you down. You can repair your credit; just remember that credit restoration can take time. If you keep your eyes on your goal, you will be able to repair your credit. - 21151
About the Author:
The secret to credit restoration is having a good education about the topic and knowing your rights. credit repair can be a sticky thing that you should investigate before attempting. If your really serious about your credit you may want to consider see an specialist.
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