• Ndidi Ihim

From Bad to Good: How to Have a Good Credit

If you are on a search for a magic repair available today, sorry but, NO, there is no such thing as a magic credit repair. As opposed to what you might have seen in advertisements of credit repair agencies everywhere, repairing your bad credit standing is not an overnight task. You will need to dedicate a good deal of discipline, patience, and effort to this.

Requesting copies of credit reports from each of the credit reference agencies is a good start. It is known for a fact that credit reference agencies do not make credit decisions. They can only give and collect credit history and providing this information to potential lenders and credit employers.

Anyone can get their free credit report from the 3 credit repair agencies. The three credit reference agencies are Experian, Equifax, and TransUnion. You can simply make a request through automated telephone service, by email or a regular mail. You must ensure that there is no errors and outdated information. You can file a dispute through writing and submit it to the credit companies. Include all supporting documentation you require to substantiate your claim.

If you are like a modern American you should have at least one negative credit reference on your report. These negative credit references include such credit remarks as:

  • Defaults (The lender has doubts that you will repay his owed funds.)

  • Late Payments (It is better to pay early.)

  • Liens or Judgments (Legal process by a lender to recover payment.)

  • Repossessions.

  • Bankruptcies.

  • Excessive Credit Inquires.

Do not take it personally if you are rejected for a loan because the lenders heavily rely on a system allows them to make better credit decisions. Business is business as the saying goes. If you were in their shoes, you would not want to give your hard-earned money to someone who can not pay you back, right? Make a plan to develop some good credit references. As you will pay off your credits, your credit report will improve that will change the lenders attitude towards you.

Let's start with the basics:

  1. Pay your bills early.

  2. Stabilize.

  3. Maintain accounts.

  4. Keep your head out of the sand.

  5. Consider online banking.

Each of these steps will help you to build good credit references with time.

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