How to Restore Your Credit in Just 5 Easy Steps?

Bad credit prevents you from applying for the loans you need such as a student financial loan, or one for an automobile. It even prevents you from getting that homey apartment you have been vying for, sometimes, it even disqualifies you to get services from water and electricity companies not to mention get a landline phone at home.

So what can you to change all this to your advantage? Well, that is as simple as 1 to 5.

First, always ask for a free copy of your credit statement after every year. It is available in Equifax, Experian and TransUnion, you can also get the copy online in this website: www.annualcreditreport.com.

Second, you have to know how to read and interpret your credit reports. This will make you come up with better financial choices and help you spend your money more wisely. These reports include your personal info such as the history of all your recent expenses, how much dues you still have and how many loans you took, and if ever you filed for a chapter 7 or a chapter 13 bankruptcy.

Third, double check your report for they sometimes contain errors which often become the reason for a person’s bad credit. Check for typos, or a debt you have recently paid but the company failed to record. Once you find an error, the company will have to conduct an investigation that would often last for a month and would correct their mistake. Always call the agency that provided the wrong information, and finally, ask for a revised copy of your credit statement.

Fourth, do not procrastinate, pay on time. This is very crucial for it will determine how you responsible you are for the agency. But there are other things that might affect your credit status: applying to too many credit accounts will not look so good for your credit score. Do not pay over your limit, it is wise to just stay a little below them. Pay regularly to lessen your debts.

Finally, seek help from the experts. Learn how to create a budget if the amount of debt that you have is beyond your capacity to pay, it is smart to seek help from a credit counselor. They will help you learn the basic knowledge you need to get out of your sticky situation in the present.

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Filed under: Credit • Credit Score • line of credit • Loans

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