Credit Repair Info

The house of your dreams has just come up for sale but new banking practices make a mortgage a little too iffy these days. You didn’t cash in your clunker in time to get Uncle Sam’s help in getting a new car and now the clunker has died for sure. That mobile broadband air card seems like such a good idea but that deposit is outrageous! When a bad credit rating puts the brakes on your plans, repairs are in order. But even before that, credit repair info is a necessity.

When gathering credit repair info, perhaps the first thing to look for is a credit score. Consumers in the United States and elsewhere are assigned numbers that represent their credit worthiness - the likelihood they’ll repay any borrowed funds based upon their past spending and repayment habits.

A history of borrowing money but not paying it back in full or not paying it in a timely manner earns a low credit score, an indication that the credit worthiness of the individual consumer is rather poor. On the other hand, individuals who borrow money and pay it back in full and make all payments on time earn high credit scores. The higher the score, the less risk they represent to the creditor. The less risk, the higher the likelihood that the loan or purchase can be made.

The creditor in question may be a bank, mortgage company, or other financial institution. It may be credit card companies, auto lenders, student loan providers, furniture and department stores, utilities and telephone companies. Every entity that receives, or expects to receive, a consumer’s money on a regularly scheduled basis is likely to be a subscriber to one of the three biggest credit reporting agencies operating in the United States - Equifax, TransUnion, and Experian. These companies generate scores that they use to gauge the degree of risk posed by a potential customer.

Begin the search for credit repair info by requesting a credit report from each of these three companies. The US government allows every consumer to obtain his or her individual credit report once a year at no cost to the consumer.

Even though these credit reports are free once a year, the corresponding credit score must be paid for but it is this number that matters the most. Each consumer credit reporting agency uses a different set of formulas to determine an individual’s credit score but they are all based on the FICO (Fair Isaac Corporation) scale of accountability.

When reviewing these valuable reports, be aware that the credit reporting companies are big but not too big to make mistakes. Verify every entry and write to the reporting company if any questions or mistakes arise. Don’t let the matter drop until your dispute has been resolved to your satisfaction.

Keep all related correspondence in a file with other credit repair info and learn to be diligent about your credit history. Before landing that dream house’s mortgage, those new wheels, or that coast-to-coast traveling internet service, you may have to refer back to the information you’ve gathered while repairing your credit rating. Keep it handy, knowing a good credit rating often means lower interest rates and cheaper deposits when trying to buy the things you really want.