You CAN Fix Your Credit Score
Posted in Finance on 07/01/2010 03:39 am by
Jay Comer asked:
The Road to Credit Repair
It is increasingly difficult to maintain a positive credit history. Lay-offs and pay cuts across the country have had consumers reeling, suddenly unable to make payments on their mortgages and credit cards.
Your Credit Score
Sadly, the converse result of the recent economic downturn is a tightening of requirements on the part of the banks, making it more difficult to be approved for an auto loan, a mortgage or refinance, or a loan of any kind. Most lenders are now requiring a much higher fico score than the did in the past. Loan approval with a lower score is not impossible, but will come with much higher interest rates and fees. For example, you may be approved for an auto loan, but your payments may be 50% higher due to increased interest.
FICO stands for the Fair Isaac Company, which is the company responsible for assigning your credit score to you, based on mathematical calculations which change every time you open a line of credit, make an on-time payment, or do not make a payment. The only way to raise a credit score is to make on-time payments every month.
There are services available who can help you with credit repair; this entails helping you budget, and perhaps talking with your creditors to negotiate affordable payments so that payments can be made on time. Over time, this will help fix your credit score.
Knowledge is Power
There is no quick answer to repairing your credit. However, it is almost impossible to understand your credit situation without seeing what is on your credit to begin with. There are a number of resources where you can receive a free credit score, and if you turned down for a loan or a credit card, you have the right to request a free copy of your credit report.
Once you know what your credit report contains, you can work to repair it. The process will not show results over night. However, each month that you make your credit card and loan payments on time, you will be contributing a little more to raising that credit score. Over time, you can recover from the poor credit score you are carrying.
Lance
The Road to Credit Repair
It is increasingly difficult to maintain a positive credit history. Lay-offs and pay cuts across the country have had consumers reeling, suddenly unable to make payments on their mortgages and credit cards.
Your Credit Score
Sadly, the converse result of the recent economic downturn is a tightening of requirements on the part of the banks, making it more difficult to be approved for an auto loan, a mortgage or refinance, or a loan of any kind. Most lenders are now requiring a much higher fico score than the did in the past. Loan approval with a lower score is not impossible, but will come with much higher interest rates and fees. For example, you may be approved for an auto loan, but your payments may be 50% higher due to increased interest.
FICO stands for the Fair Isaac Company, which is the company responsible for assigning your credit score to you, based on mathematical calculations which change every time you open a line of credit, make an on-time payment, or do not make a payment. The only way to raise a credit score is to make on-time payments every month.
There are services available who can help you with credit repair; this entails helping you budget, and perhaps talking with your creditors to negotiate affordable payments so that payments can be made on time. Over time, this will help fix your credit score.
Knowledge is Power
There is no quick answer to repairing your credit. However, it is almost impossible to understand your credit situation without seeing what is on your credit to begin with. There are a number of resources where you can receive a free credit score, and if you turned down for a loan or a credit card, you have the right to request a free copy of your credit report.
Once you know what your credit report contains, you can work to repair it. The process will not show results over night. However, each month that you make your credit card and loan payments on time, you will be contributing a little more to raising that credit score. Over time, you can recover from the poor credit score you are carrying.
Lance