7 Tips For Credit Repair

If you're reading this article, then you likely have a copy of your credit report. If so, remember that we recommend that you obtain a copy of your credit report at least once a year. We recommend that you check your credit report at least every six months since errors are common and be prepared to take further action, if necessary.

Below are a number of tips that can help you repair your credit if there is an error reported on the report. It's important to repair errors as soon as possible so that your credit rating can be seen as a positive, and thus worthy, factor in every loan you apply for.

• Check the report for inaccuracies. If you find information that doesn't fit your life, such as accounts you didn't open, balance information that is incorrect, or payments you never received, check your credit report for inaccuracies. Report errors by contacting the responsible credit reporting agency immediately.

• Always pay under the minimum due when it becomes due. It's always a good idea to pay your bills so that you don’t become late, but it can be a good idea to pay larger debts so that your payments will be posted to your credit report promptly and on time.

• Use a secured credit card. When you request your credit card, you will also gain a credit card number, and, shortly afterward, you will begin to see a small but constant line of available credit on your account.

• Begin re-establishing credit by requesting a small loan from your credit union or banker. If you use the card responsibly over a two-year period, you will regain the ability to qualify for larger loans.

• Request small loans start with debt consolidation. Home equity loans can come in handy when you are ready to make a large purchase like a car, and you may be eligible for tax credits against the interest you pay on your home equity loan.

• Ask your employer if there is a no-credit check clause in your employment contract. When you are working for someone for a particular employer, they may not check your credit unless you are fired first for unpaid credit. This also protects you from identity theft if you have accounts under your name, and while a valid credit report often identifies you, it may not always do so for Federal and State taxes.

• Have a relative or friend add you to their credit card account. Though it is not really advisable, it is always a good idea to add someone to an account as an authorized or joint user if they maintain a good repayment history. Generally, however, only income has to be present on the account and it must be current. Everybody has participated in something that has gone on a "charge" date from an authorized party. Once you can establish credit to a fair extent, you will further improve your odds of obtaining credit. If a friend or relative cannot help you this way, a secured credit card can get you started. As your credit rating improves, you will be able to open more accounts or voluntarily make larger parameters of your credit limit.
  

By practicing a measure such as the above, you can easily develop and maintain a good credit report. With a sound financial plan, and by being an conscientious and considerate person, there is nothing that you cannot accomplish.