Credit Repair Tips - 7 Steps to Rebuild and Protect Your Cred... by J.Michelle

So, what exactly is on your credit report, and how does it affect your credit score? Here’s how it shakes down. That’s why it’s essential to have the highest credit score possible so you can keep your interest payments low.

You get the best terms and conditions available when you have excellent credit scores.

This is because they think you pose more of a risk of defaulting on your payments if you have a rocky financial past. If you do qualify, you’ll receive a higher interest rate if you have a poor credit history. When a creditor reviews your application for a new credit card or loan, they’ll check your credit reports and credit scores to determine your creditworthiness.Ĭreditors will decide if you qualify for a credit card or loan based on that and other financial information. FICO Scoresĭifferent credit scoring models are used for credit scores, but the FICO score is the most popular one used by lenders and credit card companies. The information on your credit report is then filtered through a scoring model to create your credit score. Some creditors report to all three bureaus, while others may only report to one. Your credit score is a numerical reflection of all the financial information contained in your credit report that comes from one of three major credit bureaus: Equifax, Experian, and TransUnion.Ĭreditors, lenders, and other companies send them your payment history to help build an accurate representation of your creditworthiness. We’ll also teach you how to get negative information removed from your credit reports and where to go if you need additional help. In this DIY credit repair guide, you’ll learn what factors affect your credit score, plus both short-term and long-term strategies for fixing your credit. You don’t have to carry the burden of bad credit for the rest of your life. And as long as you use them responsibly, you’ll be able to get higher credit limits and lower interest rates. For example, you’ll be able to get approved for more credit cards. Do-It-Yourself Credit Repair: The BenefitsĪs you start to see that number increase, you’ll also begin to notice all the related benefits that come with having a good credit score. However, you also don’t have to wait years to see improvement. Fixing your credit is not something that you can do overnight.

Once you figure out what’s on your credit reports and how it affects your credit scores, you can start your DIY credit repair journey. Or maybe you’re not even sure how to interpret all the information listed there! When you check your credit reports, you may be surprised to find one or several negative accounts tarnishing your credit scores.

You might not even know how bad it is until you get denied a new credit card, cell phone, or car loan. Finding out you have bad credit usually comes at the worst possible time.

Credit Repair Tips - 7 Steps to Rebuild and Protect Your Cred... by J.Michelle