Fixing Credit Score a Priority?
Fixing your credit score must be a priority. The lower your score, the more interest you pay and the harder it is to get loans. But did you know that just have out of date information and actually wrong reports can damage your score 50 points or so? What you probably do not know is that those fifty points could cost you a half point or more on a home loan. That half point would cause you to pay at least $25,000 more on a $200,000 house!
These events can all cause your credit score to go down:
- You transfer funds from one credit card to another, even to get a lower rate
- Responding to a pre-approved credit card offer
- Having incorrect information reported on your credit report
Fixing those wrong reports can also be a marathon trying to jump through hoops unless you know the ropes on how to cut through the process and clean up your report.
Is it really possible to send a few letters and fix those blips on your report? Where do you get the information to find out the errors on your credit report? If you do your research you can learn the answer to those questions.
The key to the process is to find the errors or bad information and systematically insist that it be corrected. Rather than burying your head in the sand, you must continue to use credit. That does not mean go run up your balances but rather to consistently borrow and pay back on time if not early.
You would think your banker might take you by the hand and tell you exactly what you needed to do in fixing your credit. That would make a lot of sense but not going to happen. First, your banker probably has no idea how the credit scoring system works. Second, that bank will make more money by not fixing credit score for a customer.
James Montgomery teaches about credit card debt and credit repair techniques. Get free information about credit card debt as well as a do it yourself package. Learn how you can repair your credit rating at improve credit score.
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