| der for a consumer to get approved for things like | | | | report and score, it needs to be looked at thoroughly |
| credit cards, car loans and mortgages, they should | | | | to see what areas, if any are still outstanding. The |
| have a favorable credit score. The better the score, | | | | consumer can then make arrangements to contact |
| the better offers a consumer will receive. This usually | | | | their creditors. |
| translates into lower interest rates. Lenders are more | | | | A credit repair for a consumer includes honoring |
| willing to take a risk on a consumer if their credit score | | | | payment arrangements made with their creditors. It |
| is favorable. However, if your credit score is not so | | | | also includes making the payments on time, preferably |
| favorable, there’s a lesser chance that they will | | | | before the due date. If a consumer starts out by |
| do that. That’s not to say that they | | | | paying them late, then their score will continue to |
| wouldn’t. Consumers that fall in the latter | | | | decline. If the consumer feels there may be a problem |
| category would have to either fork over additional | | | | with a timely payment, they need to contact the |
| funds or wait and do some repair. | | | | creditor as soon as possible. |
| In this case, the credit repair would be to improve their | | | | The consumer should keep low balances on their |
| credit score. Improving credit scores don’t | | | | credit cards. Their scores will not improve if the |
| happen overnight. The process takes time. There are | | | | balance is close to the credit limit. For credit repair |
| several things that have to be done prior to an | | | | purposes, it’s not a good idea to move debt |
| increase in points. An increase in credit scores also | | | | around. If a consumer has credit card accounts that |
| requires a great effort of work from the consumer. | | | | they don’t use much or at all, they should not |
| When a consumer is doing this type of credit repair, | | | | close them. Having a zero balance may increase their |
| there are things that they need to know about how | | | | score. Closing it can do just the opposite. |
| credit scores are calculated. Here are several areas | | | | A consumer’s score can be raised if there is a |
| where credit scoring is affected: | | | | mixture of credit, such as credit cards and different |
| • How much is owed | | | | types of loans that are paid on time. Applying for a lot |
| • Payment history | | | | of credit is not good because too many inquiries can |
| • Longevity of credit history | | | | lower credit scores. It shows that the consumer is |
| • Types of credit | | | | desperate to get credit that they probably don’t |
| • Any new credit | | | | need. This can also help in credit repair because the |
| While a consumer is working on their credit repair, they | | | | consumer will be more focused on paying on the debt |
| would need to get a copy of their credit report, along | | | | that they already have. Some people don’t |
| with their credit score. Most states offer one free | | | | realize how important it is to have a favorable credit |
| credit report per year. There is a fee for a copy of | | | | score. A good credit score can be a ticket in getting |
| their credit score. When the consumer receives their | | | | better credit. |