Credit Score Repair : Many people in today’s economy are struggling with their finances and keeping their heads above water. It is not uncommon for people to run into trouble and then the focus shifts to credit score repair. While it is discouraging to need to work on this, there are many things that can be done to make improvements within a short amount of time. As you do make changes to improve your situation, work carefully to not fall into the same bad habits you may have had previously that lead to problems.
One of the first things you should do when tackling the road to repairing your rating is to get a copy of your credit report. The three top credit bureaus, Equifax, TransUnion and Experian will all have slight variances in their reports and you will want to check carefully to ensure there are no errors that need to be fixed. Next, resolve any outstanding debts you have been unable to maintain properly. If you are behind, contact the creditor to work negotiate some kind of compromise. Most creditors will be willing to work with you to some extent. The same thing may be able to be done with fixed-loan payments such as your car loan. You will also want to be sure to tackle any collection amounts, as leaving those outstanding will only continue to damage your score. Take a look at the cards you do have open and whittle them down to two to four cards total. Try to close out newer accounts over old ones and spread out the pace of closing accounts. If you no longer have any cards, you may want to consider opening a secured card or either a department store or gas account to start re-establishing some good history. It is important to try to keep the balances at or below 50% of the available balance.
The key to credit score repair is to make sure any bad and past due balances are worked through and to start slowly building new and positive credit. Focus on showing stability and control and your score will slowly rise.