Repair Your Credit Now

Did you know that if you are late on even one payment it can reduce your credit score by as much as 100 points? Most people really have no idea how credit scores are measured and how they can be repaired and improved upon. Unfortunately, low credit scores are more common than ever and the current downturn in the economy has just made it worse.

There is a combination of different things that determine your credit score. It is important to make your payments in a timely manner of course, but there are also other important considerations. One big determination is how much credit you have available compared to how much credit you have used. If your lines of credit or credit cards are maxed out at the limit, you are considered to be a bad risk.

When you are reviewing your credit keep in mind that the best credit scores go to the people who use only 30% or less of their available credit limits. You can increase your limits or pay down your balance to get below 30% but of course the best thing would be to never go above the 30% mark in the first place. Having available credit but not using it is a determination of a good credit risk.

Longer-term credit is regarded higher than shorter-term credit so if you have older credit cards use them more often than the newer ones. Of course, all of the same rules apply, make your payments on time and never exceed more than 30% on the balance. Paying it off every month rather than carrying a balance is always best.

You can dispute any negative information that is showing up on your report. The Federal government enacted the Fair Credit Reporting Act to protect consumers from inaccurate credit information. After you file a dispute the bureaus and the creditors must prove the validity of the information within a specified period of time. If they fail to do so then the information must be deleted from your report.

The creditors and the bureaus have 30 to 45 days from receipt of your dispute to verify the accuracy of their information. However, the advantage you have, as a consumer is that it is estimated that as many as 40% or all disputes are never verified. That means that up to 40% of all disputed information is removed from the reports. You can use that to your advantage.

As you start disputing the negative information on your reports make sure that you keep accurate and detailed records. Send all correspondence via certified mail and make sure you have accurate dates. Also make sure you send a separate letter for each dispute.

It will take some organization and determination to repair your credit but you can do it. You have the legal right to dispute any negative information and you should do everything you can to repair your credit. It will definitely be beneficial to your financial future.