Rabu, 22 Februari 2017

10 Ways to Repair Your Credit

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Many people in the world are struggling with the effects of a bad credit rating. FICO reports that 60% of Americans score less than 750 on the credit score.
Thus, most people need to improve their credit score performance to have more access to loan facilities. The following are 10 ways to repair your credit.
1. Improve Your Payment History
The biggest determinant of your credit history is how you pay your bills. After years of paying on time, you will have a strong credit profile that can impress any lender. The payment history is more than just about credit card, car loan, and mortgage so enhance your credit repair by taking care of water and electricity bills too.
2. Start With Small Loans
If you have a poor credit history, it is highly unlikely that the lender will approve you for a large sum. Since most lenders will not be willing to deal with large amounts, it is better to start with small requests.
3. Review Your Report Annually
It is important to review your credit every year for chances of credit score repair. In most cases, the information is accurate, but there is still a possibility of errors.
4. Avoid the Urge to Change Employers too Often
Although it is not that easy to maintain one employer for long, doing so is helpful if you are looking for credit report repair. To lenders, a stable employment translates into a stable income meaning you are in a better position to honor your payments.
5. Do Not Change Residences Too Often
If you rent a new flat every six months, this will have a dent on your credit history because the lender will wonder why you keep moving houses. Therefore, try to maintain a residence to repair your credit.
6. Avoid Court Cases
Clearly, being in and out of court due to debt is not a desirable situation, particularly for a person with poor credit rating. Unfortunately, if you have a problem with repaying debts this can be a constant menace. To avoid tarnish to your credit image, keep close to your lender to solve problems at the earliest opportunity.
7. Check Your Bouncing Checks Habit
Bouncing a check may seem like an innocent mistake, but it does damage credit history. Banks have a way of identifying customers who have such financial practices. To repair your credit history, you may want to think twice before bouncing that check.
8. Get A Secured Card
A secured card is a valid option if you have sought for a standard card unsuccessfully. Since this shows your financial responsibility, it is another method of credit report repair.
9. Before Going for the Big Loan, Review your Credit History
It is advisable to look at your credit history several months before applying for a mortgage. Doing so allows for a head's up on inaccuracies that may occur. You will have time to solve the issues or know what to tell the lender about them.
10. Strive to Increase Your Income
The debt-to-income ratio is a big factor when it comes to whether you get a loan or not. For most lenders, an increase in income is already a good indicator. In the same vein, updating your lender on any expected pay raise or bonus will help in credit repair.
Working to repair your credit following the tips given here is not easy and may take time but it will eventually yield results.
The Frazier Team is here to help navigate you through the mortgage loan process. With decades of experience, we are able to guide you to find the best possible mortgage solution for you. We have the experience level to understand complicated transactions and steer through the constricted guidelines of today's marketplace. In other words, we will find a way!

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