Credit Rating and Credit Repair

There is a relationship between credit score and credit repair. If your credit score is 600 or even below, credit repair is needed which means you will always be in good standing.

Yet what is a credit rating? This is an indicator that informs creditors if you are credit worthy. A simple way of doing this is to encode some things about you in the computer and within seconds, they will see the results be visible on their screen.

Credit score ranges from Three hundred and fifty to 850 so that as mentioned earlier, the score of 600 or below isn’t good because if you apply to get a loan, you will be paying higher interest levels compared to someone who has a great rating of Seven hundred or above and this is usually based on 5 factors.

First, the number of inquiries you get in the past 2 years. Have you apply for a loan or a credit card? In the event you did and this has been approved, then so long as you pay it punctually, you will have a good credit score.

Second, what types of credit you really have? If you have funds, then that is excellent. If you dont, well dont have a a high credit rating.

Third, what is the length of your own credit? People who have a line of credit for 5 years or maybe more have a better credit score compared to someone who merely graduated from college.

Fourth, how much is the debt? It is alright to have debt occasionally as long as you are able to shell out the dough. If you dont owe money in order to anyone, then excellent because this will be mirrored on your high credit ranking.

Lastly, what is your payment history? This is somehow connected with your length of credit because this will show if you have been able to make repayments on time. If you overlooked a payment that may be bad but if you have not, then you should have an excellent credit rating.

All these five factors are incredibly important. So you can see if you have any problems, obtain a credit report from one from the three crediting agencies namely Equifax, Experian, and Trans Union.

You can get a copy from each one at the same time or do it at different times during the the year. This report changes so you ought to obtain a copy annually.

One thing you might notice looking at the different accounts is that they may not always reflect the same thing. When this occurs, dont be alarmed due to the fact each one uses a different set of protocols in coming up with those numbers.

However, should something there be out-of-date or mistaken, this kind of must be corrected. If you possess the supporting documents, create a letter and send out this to the credit organization.

If what the report says its true and you are in a lot of trouble, then steps have to be taken up initiate credit repair. You can do this all on your own or with the help of any counselor.

Regardless of who is actually involved, only one factor is certain and that settling whatever outstanding financial debt you have is the only way to improve your report.

Dont expect that your loan application will be approved in the event you credit rating is not very good. Do something about it because credit repair is your only option.

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