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Wednesday, February 11, 2009

4 Things You Should Do to Repair Your Credit Score

By iRepairCreditReport

Many people don't realize that you should develop good credit or repair your credit score because lenders will give you lower interest rates when buying a car or a home. It will give you better insurance rates, cheaper products and a good credit score can even have an impact on you getting a job.

If you have a bad credit report it's due to thing like: making late payments, having an account into a collection agency, and if you have gone bankrupt. If you want to fix your credit score, you must change your habits. If you do, over time your credit worthiness will improve. Once it does, you will start to see lower interest rate offers from lenders and better lower interest credit card offers.

Check out the 4 tips below to help you repair your credit score:

1. You Must Pay All of Your Bills on Time

Your credit history is what companies base their lending on. Once they know your history they can then figure out how much of a risk you are to them. If you always pay off your debts then in their mind it's pretty likely that you will pay off future debts. So, you will be less of a risk.

2. Carry the Right Amount of Credit Cards

So many people have too many credit cards. So, what is the right number you should have? Many credit experts say you should have 2 " 4 credit cards at any one time. If you have more than that, it doesn't mean you pay them off and cut them up because they take into account not only how many cards you have but also the balance you maintain. The best thing to do would be to pay them off and keep them until you have a reasonable balance on them all. Then, you can decide which ones to keep.

3. You Must Make No Less Than the Minimum Payment

When you go to pay your credit card bill make sure you pay no less than the minimum payments indicated on the bill. If you have extra money, try to pay a little more. If you pay less, it is considered a late payment. This will have a negative effect on your credit score.

4. Keep an Eye on Your Credit Report

You should check your credit report regularly. Make sure you check the reports from all 3 credit bureaus that keep track of your score. After receiving your reports, check them for mistakes. Also, check that there are no accounts that you did not open or negative information. This way you can start to fix your credit report and find out if you have had your identity stolen.

Developing good habits is vital. Try to start implementing these changes right away because if you do, you will save a lot of money in the future. If you need to repair your credit score, this can take some time so don't delay. Your future depends on it.

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