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If you are currently repairing your credit report you understand how important your score is. How this number directly impacts your quality of life. This number is how employers and creditors will judge you. With a low score it can prevent you from being hired at a job or being approved for credit. Many lenders will look at nothing else but your credit score when you apply for new credit. They rarely care as to the reason why a negative mark is on your credit. There are two aspects you should focus your efforts on when repairing your credit score. 1. Removing negative items from your credit report. Derogatory items will cause the most damage to your score. However these marks can be removed and removed before waiting the full 7 years. The Fair Credit Reporting Act gave consumers the power to dispute any mark on your credit report. When a dispute is filled you are saying to the bureaus that the negative mark is invalid or incorrect. To file a dispute a dispute letter must be sent to each credit bureau. In this letter you must include why the listing is inaccurate. Common reasons are; not my account, item is out of date, account paid in full. Upon receipt of your letter the bureaus will investigate the disputed listing. If the mark is not verified by the lender the bureaus must remove it from your credit report. It has been discovered that many marks are removed once they are investigated, regardless of their accuracy. 2. Build positive credit This is a more difficult task with a low credit score. This is because it is difficult to be approved for new lines of credit. However it is necessary to open a new line of credit. The best is an unsecured credit card even with the insanely high interest rate. With your credit card you want to keep the balance at approximately 10% of your credit limit. This is because it will show the credit bureau that you are using your credit and it will improve you ratio of credit to debt. Also by making your on time monthly payments it will create a positive payment history. If you can not build a positive payment history it will be next to impossible to improve your credit rating. In sum, you can repair your credit without waiting the full seven years. However it may be in your interest to remove some derogatory items before you apply for a new line of credit. Understand that both these parts are vital to getting you to a 700 credit score.
Article Source: http://www.ezine-directory.info
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