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Tuesday, February 26, 2008

Steps To Improve Credit Rating

Steps to improve credit rating may be taken before the consumer has been refused lending by a financial company because of negative reports that exist in their credit file, or even after they think it's too bad to improve. Improving your credit score will result in getting loans at lower interest rates, eliminate fees, late charges, penalties, and more. A report is actually a borrowing history, so the first step to it is looking at the activity reported to see if it is positive, i.e., shows the person is paying bills on time in accordance with the contract signed with the creditor. Anyone with whom the individual has credit transactions reports to one or more of the reporting bureaus about the account. The consumer is entitled to one free report from each of the three reporting agencies each year, so that should be one of the first steps to improve credit rating, and it is to the person's advantage to request those reports to see if all the information is accurate. If a negative report is more than seven years old, it should be removed. Others can be removed if the person can prove there was a mistake.

Consumers should not apply for lending with several companies close together. Each of those companies will check the person's report, and that brings down the score. Improving your credit score happens when bills are paid off. If accounts are left open after being paid off, they remain on the report as a record of financial history, though not necessarily bad history any longer. Not changing one's score will not help the cause of getting any lending because some creditors evaluate the report differently, and will allow lending anyway, even if it's limited. Taking steps to improve credit rating by taking care of one's debts is important for the really big purchases such as a home or car.

Those who have had their financial record spoiled by job loss will find it especially difficult to make improvements while unemployed. Improving your credit score may be accomplished by contacting creditors and explaining the situation, and may result in leniency until employment resumes. If the consumer has had to file bankruptcy, making payments over time is one of the best steps to improve credit rating. Improvements in one's rating happen when fewer creditors are reporting to the credit bureaus, and fewer inquiries are being made for new lending. Caution and patience are the bywords for increasing one's rating. Holy Scripture has something to say about patience: "The end of a matter is better than its beginning, and patience is better than pride." (Ecclesiastes 7:8)

For more information :http://www.christianet.com/creditreports

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