Credit Repair

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Sometimes in life financial calamities occur. Credit counseling, bankruptcy, garnished wages; late bills, one or all of all these things have left your credit profile in trouble.

Years of hard work and good payment history is dropped like it never happened.

In the world today, your financial profile is the among the key factors used to identify if you are eligible for loans, credit cards, home rentals, car leases and purchases and many more.

When “life” strikes and your credit is effected, it can seem like there's no way out.

Where do you go from here? With hard work and smart choices your credit can be restored. A lot of the options are self-evident such as pay all bills on time etc.

But there are also ways of expediting the process. Here we will offer a few recommendations that may help you in identifying some possibilities.

Understand Your Report

To restore your position you will first need to understand your credit report and what enters into your score. There are five factors that affect it.

Payment History:

Payment factor is a huge factor and making up 35% of your score. It includes payments that were made after due, the number of accounts with late payments and negative lawsuits like bankruptcy.

Paying bills on time by their due date is necessary, not just for avoiding penalties, but in maintaining it off your report at the top place.

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Accounts Owed:

Accounts owed Making up 30% of your score. It includes the kind of accounts, account balances, totals owed as well as the ratio of debt to available credit.

Credit History Length:

It is making up 15% of your score. This considers the age of your youngest and oldest accounts, the average of all accounts and how often you use individual accounts.

Credit Types:

Making up 10% of your score is where you have credit and how you having it. Certain types like secured debt such as auto and home loan are considered better form than unsecured debt like credit cards.

New Credit:

New credit is making up 10% of your score. Lots of applications can negatively effect on your score.

Restoring your score starts with checking your credit report. You can request a free copy and check it thoroughly for errors. Reports will consist of data that is used to calculate your score.

Be sure to check and ensure that there are no incorrect late payments, and that the amount owed on each account is accurate. If anything is inaccurate you can dispute the items with the credit bureau.