Recovering from a poor credit history is not an overnight process. When you come to the understanding that your credit is crucial and that you need to change your spending habits, it can be a life altering experience. Once this as happened, you will want to work to fix credit score issues and to perform quite a bit of credit repair and maintenance. Rebuilding credit is a slow process, but it is one that is absolutely imperative in today’s world. Not only are lenders looking at your credit, but landlords and employers are starting to do so as well.
Rebuilding your credit starts with getting rid of any inaccurate information on your credit report. Using credit repair software to examine your entire credit report can prove highly beneficial to you. If an item is inaccurate, misrepresented, or simply inappropriate (i.e. not your debt), then you have the legal right to mail in a letter of dispute. The creditor has thirty days to prove that the debt is valid, or the item must be permanently removed from your credit report. This can make a significant difference in your score.
Rebuilding credit has to go beyond removing inaccurate negative reports, however. You will also find that you need to add positive reports. This means opening a credit card account, even if it is a prepaid major credit card, and allowing the account to remain open. Ideally, you want to keep your balance at only a few percent of your limit. Paying a single monthly bill with the card and then paying the balance before interest accrues is generally the best way to go. Remember that your payment history and card balance are both factored into your credit score.
Rebuilding credit is a lengthy process largely because potential creditors weigh the amount of time your positive accounts have been established very heavily. With that said, however, keeping a new credit card open and paid for even six months can go a long way towards helping fix credit report issues. When you pay careful attention to ensure that your credit information is always valid and are willing to invest the time required to rebuild, you will find that the benefits are nearly endless. You deserve a credit score that will help you get the financing you need, and rebuilding credit is the perfect place to start when you want to achieve it.