Even though the method that each credit reporting agency
uses to calculate your credit score is different, the way
you approach cleaning up your reports will be somewhat the
same. It's the sense of urgency you proceed with that will
determine just how fast you can raise each of your credit
scores.
Once you receive your credit reports from each of the three
major agency and know the areas of each that are affecting
your credit score the most you can create the plan of
attack you are going to use to clean these areas up and get
the best results possible in the least amount of time.
Using this particular method of repairing your credit
reports and improving all three of your credit scores will
make the next steps that you must take that much easier to
accomplish.
Once you have cleaned up your report and raised your scores
the first step you must take is to secure a small loan with
a local bank. Most times you will be able to do this with
just your signature. You will then begin making the
payments on that loan. Each payment will be made on time at
the very worst. Your goal is to make the payments early.
This will begin to create a positive payment history. It is
that history that will eventually give future lenders the
confidence to trust that you can make payments and will
make the paymenst as outlined.
Not only will this allow you to get better interest rates,
but will also allow you to secure better rates on your
insurance. The lower interest and insurance rates will
result in lower payments which in turn ensures you can
manage them and not miss any payments, thereby improving
your credit score even more. Remember, you want to make the
payments on time at the worst.
Repairing your credit score isn't quite as difficult as
most people think it is. Making sure the correct steps and
ensure that you don't have any hiccups along the way where
you miss payments or make your payments late.
While you should start your credit rebuilding plan with
this method, the momentum created with this method is going
to improve your score quickly. You also need to remember
that there are several other areas on your credit reports
that will affect your score and they all need to be
addressed at some stage if you are to achieve the highest
score possible.
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Ron Barrett is the author of 15 Proven Credit Strategies;
How to Get the Credit That You Deserve, a detailed guide on
how to monitor, repair and maintain your personal credit
report and scores. You can find it at
http://www.provencreditstrategies.com . Ron provides
methods he personally used to clean up his credit reports
and raise his scores from the low 500's to upper 600's and
explains how you can easily do that too.
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