Credit Repair Tips

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Your credit is more valuable than you might think. Having good credit is crucial to getting approval for credit cards, loans, and mortgages. If you have bad credit, do not worry. This article has great advice on credit repair to ensure that you will not get rejected from any financial institution.

Be mindful of the impact that debt consolidation has on your credit. Taking out a debt consolidation loan from a credit repair organization looks just as bad on your credit report as other indicators of a debt crisis, such as entering credit counseling. It is true, however, that in some cases, the money savings from a consolidation loan may be worth the credit score hit.

Keep your first account open. Whatever credit account you have had open the longest, is the best one to keep on your report. Don’t close this account because the limit is too low or the rate is too high. Try to get a higher credit limit, or ask for a lower interest rate, but even if they won’t give that to you, keep the card and keep using it. The longer track record you have with an account, the more it will affect your score in a positive way.

If you have extremely bad credit, consider going to a credit counselor. Even if you are on a tight budget, this might be a very good investment. A credit counselor will explain to you how to improve your credit score or how to pay off your debt in the most efficient way possible.

If you are trying to improve your credit score, keep open your longest-running credit card. The longer your account is open, the more impact it has on your credit score. Being a long-term customer may also give you some negotiating power on aspects of your account such as interest rate.

An important tip to consider when working repairing your credit is to ensure that everything in your contract is written down and signed. This goes for any credit repair transaction or any agreement with your creditor. This is important because you can never assume – just because something was said in person or over the phone – it is binding.

Ordering one’s free credit report from the three major credit recording companies is absolutely vital to the credit repair process. The report will enumerate every debt and unpaid bill that is hurting one’s credit. Often a free credit report will point the way to debts and problems one was not even aware of. Whether these are errors or legitimate issues, they must be addressed to heal one’s credit score.

An important tip to consider when working to repair your credit, is the fact that you cannot legally have a second credit file created for you. This is important to know because there are scammers who offer to do this, and it is completely illegal. You can only have one social security number and one tax ID.

Follow these valuable, simple and effective steps to repair your credit. By putting in a little time and effort, you can clean up your financial reports and have a good credit score. Greatly improving your credit will ensure that you do not miss out on any financial benefits or loans.

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