How To Fix Your Credit In 6 Months Or Less

By Bessie D. Burton

If your credit situation is less than ideal and you are trying to buy a home, you probably are interested in repairing your credit fast. While there are certainly things that you can do to quickly improve your credit situation, it is important that you have realistic expectations. If you have had a recent foreclosure or bankruptcy, it simply is not going to be possible to repair your credit quickly. However, if most of your recent bills have been paid on time and your problems are a bit older, there is quite a bit that you can do to improve your overall credit situation.

A bad credit score not only affects a person's ability to borrow and obtain loans, it can also adversely affect a person's quality of life. Obtaining good credit is something that many people wish to achieve, but many don't have the basic know how to get started. In the next few paragraphs we will discuss three simple ways you can begin to fix your credit report, and do so without having a negative effect on your credit score.

It is a common misconception that closing old accounts will help to improve a person's credit score. In fact, old accounts are your ally in obtaining a good credit rating. Keep your old accounts active, even if you only keep a small balance on each of them. The age of accounts in your credit report along with the payment history on those accounts are large factors in how credit reporting agencies calculate your credit score.

If these methods are not successful in getting a negative account removed from your credit report, you will want to do a pay for delete. This is where the creditor agrees to remove an account from your credit file in exchange for you paying the account in full.While you are working on credit repair, don't forget that paying down revolving debt is one of the best ways to improve your credit score.You can improve your credit score yourself by disputing the personal information that has been compiled in your credit reports from the Big 3 Credit Bureaus -- Experian, Equifax and TransUnion.Your first order of business is ordering your free credit report online at There is no charge for this service.

Secondly, it is a good idea to print out each of your free credit reports to have a hard copy you can easily refer to as you start the dispute process of your credit report entries. Having immediate access to these credit reports now will give you all of the facts as to the current status of your credit rating in stark black and white.

Taking these proactive steps to fix your credit report are by far the easiest ways to increase your score and secure your financial future. Following any one of the three steps outlined in this article will help you to improve your credit score drastically, but following all three steps every day can have astounding results. If you are ready to start making major purchases, such as buying a first residential property or car, you may be curious abut how to fix your credit score. Sadly, many consumers make the mistake of damaging their own consumer credit reports well before they have the opportunity to own anything of value. The good news is that there are quite a few things that can be done to make repairs.

You should be aware that both the CRA and the business which provided originally submitted negative information to the credit bureaus are responsible for ensuring the reported information they are adding to your credit report remains accurate and timely. They have a vested interest in getting the story right. This is where you likely will find the errors, and where you will have the best opportunity to challenge black marks and derogatories hurting your credit score.

Another thing to look for are accounts that you have already paid down, but which companies have failed to clear up. If you find errors like these you will need to contact businesses individually to request corrections. This can take time to accomplish, however, it is one of the surest ways to kick a score up quite a bit.

Your real key to repairing your credit is to write an effective letter to the CRA (that is, the "Consumer Reporting Agency") pointing out specific information you have identified which is inaccurate. When sending this type of letter, attach copies (not the originals) of all important, relevant documents supporting your case.You must provide the CRA with your complete name, your address, plus contact information. Moreover, your credit dispute letter needs to clearly identify each item in your report you dispute. Simply state the facts and explain why you are now disputing the information. Be clear that you demand deletion and removal of this information. You can easily follow the template of a sample credit repair letter to craft your own dispute letter.

Consumers must also work hard to develop positive lines of credit. If you want to know how to fix your score in a major way, you will find that spending money will actually help to increase an individual's purchasing power. You do not need to make a major purchase in order to do this. In fact, many people establish positive lines of credit by simply signing up for secured credit cards or by letting a business finance an in-store furniture purchase. These accounts are easy to manage and pay down and will help you to show yourself as being worthy of larger amounts of funding.

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