Sunday, September 03, 2006

Repairing Bad Credit

Bad credit can have a serious negative influence on a variety of things in your life…not only can it prevent you from getting the loan that you need or the credit card that you want. It's easy enough to begin the process of repairing your bad credit so that you won't have to miss out on these opportunities in the future. Understanding Bad Credit One of the first steps to repairing bad credit is taking a moment to make sure that you understand exactly what credit is and what it means to have bad credit.

This score is compiled by one of several credit reporting agencies. Is a numerical indicator of how much of a credit risk an individual might be. Is therefore considered to be a low risk individual in regards to defaulting on a loan. Showing that there is a much higher chance that the individual might default. One of the key factors in improving your credit score is stopping old creditors from continuing to make negative reports to the credit reporting agencies. The damage that has already been done to your credit score will remain. The debt will be reported as satisfactorily repaid and there will be no additional negative reports filed because of that particular debt. This is important. Because one of the first steps in making things better is to make sure that they don't continue to get worse. There are several ways that you can do this. It's important to stay current with any new payments that you may have… after all. Expiration of Old Reports The good news is that the negative reports that you've had in the past will go away… the bad news is that it can take 5 to 7 years before the reports expire and stop affecting your credit score. This is where patience comes into play.


Post a Comment

<< Home