Learning how to repair a bad credit score is not hard. It is one of the best gifts that you could possibly do for yourself as the impact that repairing a bad credit score can bring to your finances is almost unbelievable. Currently our credit and credit scores impact so much that we do that it is a major crutch having to deal with a bad credit score. The good news is that with the right information and a little motivation, and with the help of a legitimate credit repair company, you too can repair bad credit scores.
More than likely your bad credit score will be caused either because of outstanding debt that you owe or because of past obligations that you did not take care of. I will explain a little here about how current outstanding debts can affect your credit scores, but the main focus of my article today will be in helping to clear a bad credit score due to past obligations that are blemishes to your credit scores.
Thirty percent of your credit scores are based off of your current debt to limit ratio on revolving credit. So, for example, if you have a $1,000 limit visa card and you owe $950 dollars on it, you have 95% of your debit or credit ratio used. There are a few things that affect this part of your credit scores. One is per account and the other is overall debt to credit ratio. It is best to keep your accounts under 30% of your available limit to maximize your credit scores.
Now the focus of this article is to help to repair a bad credit score due to older obligations that might have gone to collections, were charged off, or paid late. Most negative credit will stay on your credit reports for seven years before they will go away. It doesn’t matter if you paid thirty years on time and only paid once late. That late payment is keeping your credit scores down from their maximum potential. Credit repair is entirely legal despite what some people will tell you. The fact of the matter is, you have a right to ensure that everything on your credit report is 100% accurate. If you have reason to believe that something might not be 100% accurate or, if you just are not sure of the item in general, you have the right to request that the credit bureaus investigate the validity and accuracy of the items in question.
That is how and why credit repair works and it is regulated by the Credit Repair Organization Act. Once you ask them to investigate, they have a certain time period to contact the creditor in question and to validate the item you asked them to. If anyone in the process slips up or doesn’t respond, then the item must be removed or corrected.