It is extremely important to keep a good credit score. We do not realize the importance of a good credit score to we need a bank loan or insurance badly. A credit score is spoiled if you fail to pay a bank installation on time. It can also be spoiled if you have unpaid loans or taxes. There are several companies which specialize in credit repair. You can easily hire the services of one such organization. You may also do credit repair on your own. There are certain steps you need to follow to do the same.
The first step in credit repair is getting your FICO report. A FICO report is a detailed account of your credit score. Analyze the FICO report to understand why your credit score is low. Late payments, unpaid accounts and bankruptcies can bring a person's credit score down. Judgments passed against you can also bring your credit score down. Assess wherever the information in the FICO report is correct or not. For Example, your FICO report may list a late payment that you never made.
The next step for credit repair is making a list of all your negative records. Sort all your negative records and make a list of them date wise. The oldest records should be listed first. There are three bureaus in America which report for or against you. All of them report differently. If you come across a wrong entry on your FICO report, write to the bureau. Once you have done that the federal government will investigate the wrong charges. In the process of investigation, the government will also contact the original lender. In absence of information from the lender, the wrong entry will be removed from your credit report and then your credit rating will improve. The federal government normally responds to such complaints in thirty days.
There are many unavoidable circumstances which may spoil your credit rating. A divorce leaves a lot of unpaid bills which may be the combined responsibility of both the husband and the wife. Some time either one of the two may leave certain bills unpaid due topite. Parents often agree to co-sign credit card bills of their adult kids. When children default these payments, the credit ratings of the parents also get spoiled. Parents then need to resort to credit repair in such scenarios.
A bad credit report does not mean that you can not get a loan. Several credit giving companies evaluate a credit report differently. Make sure you explore all your options before resorting to credit repair. Certain companies only evaluate your bill paying cycle in the recent years. Some other companies ignore certain negative entries on your credit report. If you have paid all your bills properly in the recent years, you may not face problems at all. It is advisable that you get your credit report checked by a financial advisor periodically to ensure that you get credit when you need it. You may also seek help from a reputed credit counselor.