If you want to repair credit scores and open up more doors for your future, here are four relatively simple ways to approach credit report repair. First of all, checking your credit score is the only way to get real. Often, we spend months lying to ourselves. “I’ll pay myself back next month,” we say. Or “I don’t have the money to pay these bills so I’m not going to even look at them.”

At www.annualcreditreport.com, you can get a free copy of your official financial report from TransUnion, Experian and Equifax, which are the three major credit bureaus. Initially, you may be surprised to see that they don’t all have the exact same information. That’s because your creditors are only legally required to send your payment information to one of the three companies. You may also be surprised to see items from a long time ago, as by law, delinquent payment history must remain on your record for seven years. Additionally, you may find errors, which could boost your credit overnight if you catch them and take action to dispute the claims by sending a letter to the credit bureau.

Secondly, you may want to negotiate with your creditors for a lower interest rate. While this won’t repair credit outright, it will certainly give you all the benefits you’re entitled to. If you have a credit score of 720 or higher, then you should have no problem finding a card with 0-5% interest rate for at least the first year. You can compare credit card offers at www.cardratings.com. Remember that when you pay less interest, more of your monthly payment goes toward your balance. If you have shoddy credit, then you’ll have to settle for an interest rate no lower than 9.9%, yet keep in mind that if you pay your balance in full each month, you won’t have to pay any interest at all. Making timely, complete payments on an unsecured credit card is one of the best ways for people with bad credit to create a new, positive payment history.

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This entry was posted on Tuesday, November 11th, 2008 at 6:44 am and is filed under Financial Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.