From Editor: This is a guest article written by Zach Ramsay
Ideally, we would all be able to get a secure a loan to buy a house or car, be able to rent an apartment, or land the job of our choice without any difficulty or hassle. But in reality, those who would loan you money or advance you credit in most instances are going to want to make some kind of objective evaluation of your creditworthiness first. While there may be no obvious standards to determine just what exactly makes someone either a good or a bad credit risk, each potential creditor knows what they are looking for, and if they judge your creditworthiness to be unsuitable your application for a loan or for new credit will not be approved.
When your credit is bad, you are going to want to do something about this situation as quickly as possible. When you take steps to improve your credit rating in order to increase your chances of being able to acquire a home loan, or lease a car, or apply for a credit account with a retailer in the future, it is this process that we refer to as credit repair.
Finding Your Credit RatingTransUnion, Equifax and Experian, the three credit reporting agencies, collect your information from past creditors, give you a credit score based on what they find, and share that score with any potential new creditor that contacts them. You are entitled to one free copy of your credit report from each of these services – once a year – and this is the first step you should take once you become aware that there may be a problem with your credit rating. Once you know what your credit score actually is, then you will know if steps need to be taken to repair it.The first thing to do is to check very closely to make sure that there are no mistakes or errors on your credit report. If you find errors, your process of credit repair may be as simple as contacting the credit bureau in question, letting them know about the mistakes, and then waiting for them to verify the disputed information with the past creditors responsible for submitting the incorrect or information that is outdated or no longer relevant.
If everything on a credit report is accurate, and the credit score is still a problem, then it will be necessary to undertake the process of credit repair by re-establishing proof of your ability and willingness to pay what you owe promptly and completely. Credit scores will change over time in response to your future activities, so if you pay off your past due bills, are sure to make future payments for financial obligations promptly, and just generally show yourself to be a reliable risk, it should be possible to repair credit so that it will be much easier to get loans, make purchases, and secure housing or employment in the future. Creditors evaluate risk based on a FICO score range, so it is important to improve your credit score enough so that it will move you up into a range that is more acceptable to potential creditors.
The Necessity of Credit Repair
Your life options may be limited in important ways if your credit rating is bad. This is why taking action to repair your credit once you find out your score is in a relatively poor credit score range is more of a necessity than an option. Fortunately, credit repair is highly achievable – it is mostly a matter of making absolutely sure the information in your credit report is accurate, and making absolutely sure that you don’t repeat the mistakes of the past if it is.
About Author: Zach Ramsay is a finance and investment blogger with personal finance blog MONEYEDUP. Visit and read in our blog to learn more about how to improve your credit and finances. Start on the path to financial freedom.
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