Credit issues in today’s society may be exacerbated by the downturn in the struggling economy.
After taking care of the biggest expenses of shelter and an automobile, there may seem to be no need to be concerned about credit, but is entirely possible that credit issues can develop with almost anyone, regardless of age or stature.
Bad credit can affect almost any aspect of personal and professional life.
Prospective employers can check on you your credit history with the implied justificationn that managing your finances, can be seen as a paralle to managing your personal life.
Your credit history is also used in determining rates for auto and home insurance.
If you do have bad credit and are concerned that your credit difficulties may prevent you from qualification for debt consolidation loans ,credit repair may be a possible alternative to alleviate some of the associated stresses.
There are some steps to undertake, to begin the process of credit repair.
The unitiated may not yet appreciate the significance, but it’s actually pretty simple. The problem cannot be easily resolved until it is confronted and when it comes to repairing your credit you should know the truth, regardless of how ugly it seems.
The first step in credit repair is to get a clear picture of where you actually stand.
Obtain copies of your credit report from all three reporting agencies. Make sure there are no inaccuracies. If you do find a mistake , it is your obligation to contact the company in writing and request that errors be corrected.
Make sure you have the necessary documents to substantiate any claims of errors. The agencies are required by law to respond within 30 days.After the errors have been corrected, the next step in the credit repair process is a matter of paying your bills on time.
When in financial constraints, it is often customary to concentrate mostly on what is considered major expenses such mortgages, credit card payments and car loan payments. Ancillary consumer debt obligations such as utilities, cable and satellite t.v. payments are often neglected.
This is a mistake that can be avoided , and all bills should be paid on time. Slow payments to Utility and Cable companies are also reported to the credit bureaus which will negatively impact your credit score.
There is no great secret to credit repair.
The subsequent step in the process should ensure that you develop a budget to curtail expenses and lower your debt that will eventually raise your credit FICO score. It is advisable to ensure that current balances be held at approximately 40% below your spending limit.
Lender will note this as a wise step in financial management.
The process should not be long and arduous, the commitment to primary objectives of developing and implemeting the action plan are all that is necessary, and your success can almost be guaranteed.
Some sacrifice may be required, but an improved credit score can actually improve the quality of life.
It is never too late to take control of your finances . You must be willing to commit yourself fully to the process and you too can find that credit repair leads to a brighter future for you and your family.