Credit Score Repair Basics

Here are some basic tips and credit score repair tips that will allow you to maintain your credit report and protect your financial future.

All of us have probably been informed that our credit report is a very important document. Its importance will increase if we have been denied a loan and realize that we must repair it or if we have been a victim of identity theft. Below you will find what is typically on your credit report and some precautions you can take to prevent identity theft from happening.

The first thing you want to do is to obtain copies of your credit report. One report will not do because each credit report could have different information on you. You must receive a copy from each of the three major credit-reporting agencies. Legally, you are entitled to one free copy of your report from each company, once a year. You should also look into monitoring your Fico score so that you can really gauge things, but you do not have to go that far if you do not want to. However, it is the Fico score and everything reported on you that determine whether lenders will work with you and at what cost if they do.

You also need to know that the reports will have a few different sections. Remember, there is nothing on there about your race, salary or net worth. Therefore, everything that you are being judged by is simply your payment history. In the first section, you will find the standard information such as your name, address, employers name and your social security number. If there are liens in your name, such as a car note or a mortgage lien, those will be found in another section. For each debt you have, information such as the date it was opened, the amount owed, limits and payment history will be reflected on the credit report.

The court system also reports to the credit agencies. Generally, these reportings consist of divorces, judgments, liens, and bankruptcies.

There will also be a section on your credit report that lists all the inquires made on your report. Each time you apply for a credit card or a loan, the creditor will pull your credit report and this will be marked on your report. The only time this is not noted and counted against you is when you pull your own report.

Of course, you want to do your best to keep your credit report clean. Every piece of negative information on your credit report will stay there for seven years. If you have a bankruptcy, it will stay there for ten years. .

It is important to make sure that you are reviewing your credit reports with a fine tooth comb to make sure that you are fixing all errors. Even a small error could cost you thousands of dollars in interest rates. It is up to you to make sure that your credit report is clean as no one else is responsible for it. It may seem like a lot of work but it is well worth it in the end.

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