7 Steps to Get Your Credit Back on Easy Street
Are you tired of being shown the door when you apply for a loan or line of credit?
Getting your credit back on track is easier than you might think. The best place to start when trying to repair credit is to know where you stand. Check your credit reports by going to annualcreditreport.com to get an indication of your credit score and your credit worthiness. Make sure to download copies of your credit reports and check them for errors. Also check for accounts you don’t recognize and for signs of identity theft or fraud. If there are errors on your credit report or signs of credit misuse, make sure to contact both Credit Reporting Agency and the lender that provided the information. Since payment history accounts for 35 percent of your credit score you must pay on time every month. Your credit utilization ratio is the amount of available credit compared to what you have used. This affects thirty percent of your credit score so if you pay down or pay off a credit card or loan you will lower your credit utilization rate. Time heals all wounds rebuilding your credit will take time but if you’re diligent you can make progress in as little as 6 to 12 months.
