If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.
Once you have a bad credit rating, it might seem like there's nothing that you can do about it but you don't have to believe that. It's not as difficult as you might think to get by with a bad credit rating; with a little work and time you can even repair it! Of course, before you do that it's important to realize exactly what a credit rating is.
Every time a lender or other creditor makes a report concerning your payment history to them, this report affects your credit score.
Your credit score is a numerical indication of the positive and negative reports that you've received from creditors and lenders; if the number is high then you have a good credit rating, and if it's low then you have a bad credit rating.
Basic credit repair
Get organized! Make a folder for all your correspondence offline and online. You will have to do some snail mailing but in most cases you can work your repair online.
In the U.S. a 630 rating will qualify you for a mortgage. You can still get credit with a lower score but not at a premium interest rate.
In fact, even a chapter 11 bankruptcy (erases all negative credit) is not as bad as many think. I am not advocating filing for bankruptcy (the laws have changed so you might have to set up a re-payment schedule if your income allows) but for those caught between a rock and hard place, unemployment, medical crisis, divorce...many good reasons for finding yourself unable to pay your bills, filing for bankruptcy is a god-send.
Many times, you will find creditors very eager to extend credit because you don't have any debts! It is the irony of the debt-income picture... if you have a steady income, you will have no problem getting credit cards, auto loans and even a mortgage.
So, don't despair, your situation is not as bad as you think! You will find a way to less worry, more sleep and better relationships.
To begin correcting your credit, the important thing to do is obtain your credit report and study it. Mark all the negative items.
Most unsecured credit, mostly credit cards, can stay on your report for 7 years. If you find any over that, write to the credit bureau and ask them to remove it. They are required by law to research and report back within 30 days.
If they don't, you can threaten them with a letter to the Better Business Bureau or Federal Trade Commission.
Find any other negative items and determine if they are correct. If not, write the bureau and tell them its not your debt.
Even if you aren't sure, ask the credit bureau*s to investigate. Many times, they will not be able to verify the debt because the credit card company, auto loan company or other creditor won't get back them within 30 days (required by Fair Credit Act).
For the contact information on credit bureaus as well as samples of letters to send to them, go to:
http://www.repair-credit-right.com
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About The Author
Dan Farrell is the creator of Repair Credit Right! With Tips, Articles And Credit Resources To Help You Restore Your Credit. http://www.repair-credit-right.com
Learn How to Repair a Bad Credit Rating
You may have discovered that if you have a bad credit rating, it is extremely difficult for you to get financing, loans, and perhaps even employment. And having a bad credit rating often leaves you feeling helpless and feeling like there is nothing much you can do about it.
However, that is simply not the case and it is very possible to not only get by with a bad credit rating but actually repair your bad credit rating. And it doesnt have to be difficult. You first need to understand exactly what your credit rating is and what it says about you to your potential creditors. Your lenders and creditors report your payment history, which is used to determine your credit score. Your credit score is a numerical value based on the number of positive and negative reports submitted by your creditors. A high number indicates a good credit rating, while a low number indicates a bad credit rating. Your credit rating may change depending on the reporting periods, which may be monthly or quaterly. This means if you take positive action, a change for the better can and will be reflected over a period of time.
Where do you start? Well, if you want to repair a bad credit rating, start by obtaining a copy of your credit report. Your credit report will show the lenders who made negative reports and reported late payments and missed payments. These are likely the causes of your bad credit rating. You will want to contact the creditors who have reported you for non-payment and arrange a repayment schedule with them. Make sure that all your current accounts are up to date, so as not to invite any more negative credit reports. In other words don't continue to fall behind on your payments!
Consistent repayment of your debts over a period of time will gradually lead to positive reports of your debts being paid, while the rest of your accounts will continue to be in good standing since you are now making your payments on time.
Over a period of a few months, you should have more positive reports and less negative reports which will help tremendously with your bad credit score. Although to completely eliminate and get rid of your bad credit score, you will have to ensure that you do not miss any more payments and that you continue to make your payements on time. This strategy is a surefire way to repair a bad credit rating.
Both Dan Farrell & Hanif Khaki are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dan Farrell has sinced written about articles on various topics from Disneyland Vacation, Web Development and Self Esteem. Dan Farrell is the creator of Repair Credit Right! With Tips, Articles And Credit Resources To Help You Restore Your Credit.