5 Easy Tips to Fix Credit Problems

By: Chane Steiner
It seems that everyonein Americahas one type of credit problem or another. We all need to learn how to fixcredit problems because our society revolves so much around credit-basedsituations. Even if you have a superior credit score, you can watch it drop by100 points just for missing a single payment - or even making a late payment!The credit realm is definitely cut-throat and it isn't going to suddenly geteasier to handle. There's good news though! There are methods that you can useto fix credit problems. Let's look at 5 hot ones now:

#1: Start making yourpayments for everything that you are responsible for on time. Pay your bills infull and do it every time that they come due. The scoring algorithms that havea direct affect on the happiness that we experience love to see timelypayments. They do not appreciate late or missed payments whatsoever, and theyhave no problem showing you that by dropping your precious credit scoreovernight!

#2: Keep your creditcards at a maximum charge level of 30% and pay them off in full every month.The second most important variable in your scoring algorithm is based upon thedifference in the amount of credit that you could use as compared to the amountof credit that you actually do use. Keeping the charge levels low showsrestraint and responsibility. That's what the algorithms like - nobody eversaid they were any fun!

#3: Dispute any and allnegative items that show up on your credit reports. It is your right to do soand it is the responsibility of the reporting agencies to verify all disputedclaims with the creditor that placed them on your report. This is an integralcomponent in your overall strategy to fix credit problems that you may have. Ifthe disputed items cannot be or are not verified within a reasonable timeperiod (normally 30 to 45 days), then they must be removed from your creditreport. This is definitely worth doing as it has been shown that as many as 79%of all credit reports contain some degree of inaccurate information. If you donot dispute negative items, they will remain there indefinitely.

#4: A leveraging methodto fix credit problems involves having somebody with excellent credit add youas an authorized user on one or more of their credit accounts. The algorithmsraise your credit score because they see that the person with the excellentcredit had entrusted you. Alternatively, but equally effective, is to havesomeone cosign a loan for you.

#5: When all else fails- if your credit is just horrible, you can still fix it, but it will requiresome patience. You can fix credit problems in extreme circumstances by filingfor bankruptcy. That's what the bankruptcy laws and courts are there for.Sometimes, people need a second chance in their financial lives. After youfile, you are going to have to wait a while for any credit to be granted to youagain. HoweverFree Reprint Articles, sometimes a bankruptcy is the best option available.

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