You probably already know that the mere fact you have credit means you are essentially using someone else's money in order to make payment for your purchases.
It is also means that you are obligated to repay the money to the person, agency or lender that loaned you the amount.
If you are attempting to apply for a mortgage, credit card or any other form of a loan then it is normal for the lending institution to check your current credit worthiness.
This credit check helps them determine if your represent a credit risk and it also has a huge impact on the terms of your loan to include the rates that are used.
A positive or high credit score indicates that you have a good financial background and increases your chances of being approved for your credit with favorable rates.
Unfortunately, if your credit is poor then you must find a way to repair it or fix it by raising your credit score and eliminating the items What Is Credit Repair? Consumers that have been identified by a lending agency or the three credit bureaus as having bad credit or poor credit history must try and reestablish their credit worthiness by undergoing a credit repair process.
Generally, this involves obtaining your credit report from the agencies and carefully taking the appropriate steps needed to address or identify any readily visible or apparent issues to included misinterpretation, omissions, misreporting and any other inaccuracies that are noted or found.
Once a person has identified these discrepancies and errors in their credit report they are entitled to dispute the errors that will negatively impact their credit worthiness and financial health in the eyes of potential lenders.
There are numerous laws and regulations that were designed to guarantee a fair, impartial and legal undertaking of the credit repair process.
These laws form the basis to formally start the credit repair process for a consumer with bad credit due to errors found on their reports.
In order to help facilitate this process, every consumer is entitled to receive one free copy of their credit report from each of the three credit reporting agencies or bureaus.
An investigative process in regards to the real nature of any found errors or inaccurate information is vital to a successful credit repair situation.
Every consumer needs to understand that what allows them the opportunity to make purchases in the future and their actual purchasing power is their credit record.
Always keep in mind that a great score is extremely helpful when it comes to buying a car, applying for a mortgage, loan and in some cases even a job.
A low or bad credit core places you at risk of being charged high interest rates and bound to outrageous loan terms from many companies.
These are the very reasons why maintaining a clean bill of health for your credit record is vitally important to your financial security, both now and in the future.
Tips On How To Repair Your Credit The credit repair process can be successfully achieved but it does require hard work and discipline.
Although the well publicized easy methods may look appealing, they are in fact normally associated with leading someone to future financial difficulties, especially if anything illegal is conducted in an effort to repair someone's poor credit history.
In the event that your poor credit history is a result of circumstances or issues that are out of your control you may reserve the right to request for an upgrade in your current credit rating to your creditor.
However, this usually requires that you make amends to your records after the fact or situations that led to the problem or error.
Most creditors don't normally trust consumers that have a history of defaulting on payments.
Naturally, this can pose as a difficulty for someone attempting to obtain new credit.
The good news is once you are able to demonstrate the ability to make prompt payments and a solid income you can improve your poor history in as little as two or three years.
This allows consumers who are down on their luck and that have declared bankruptcy the opportunity to obtain a credit card two years after the filing of the bankruptcy provided they can show proof of steady income.
Never underestimate the ability to fix any errors on your credit report but always keep in mind that there are no easy or quick fixes when it comes to legally repairing your credit.
By practicing sound financial planning, following a budget, contacting the credit bureaus and creating your own corrections your credit score will improve naturally on its own.