Once damaged credit does not mean a lifetime of imperfect credits. It is possible to repair bad credit situation to improve credit ratings and FICO score. First step towards this involves adopting a planned financial strategy and eliminating poor debt repayment practices. Also, in certain special circumstances like illness, marital problems, job layoff, or any other temporary circumstances confined to a particular time period, a person's past credit problems can be counterbalanced by one year's clean payment record.
Here are few tips to help you repair your imperfect credits:
To repair bad credit, borrowers must follow the steps given below:
* Ensure that the credit file is accurate. Review the credit report for outdated information. The borrower must take immediate steps to correct the mistakes in the report.
* Making payments towards the debt (either partially or fully) may persuade creditors to remove derogatory information from the credit file.
* Start repaying outstanding balances on time.
* Documents that prove the borrower's stability must be sent to the credit bureau. Long-term employment, statements that show timely payment history could be added to the file.
* Secured credit cards and loans are another way of building good credit.
* Any unpaid items such as judgments, liens and collections must be satisfied.
