Credit score repair is not an easy task

Credit score repair is important for people in need for a better employment or for credit to buy a home or simply for getting a loan with better terms. When you do not have a good credit score like 60% of population your chances of financial success become very limited.

How the credit score can be repaired and how difficult it is to do it?

Only the incorrect information can be removed from credit report. Accurate information stays on the record for seven years from time it is reported. The bankruptcy is kept for 10 years on record. Even the info about late bill payments will stay on record for seven years.

Whay the Credit Score is so important?

All the money ever printed as currency represents only 5% of the entire wealth of the world. The remaining 95% exist only on computer chips, in the form of credit. The banks operate every day with about 15% cash only. This is required by Federal Reserve Bank who keeps the gold in vault for the same purpose in about the same percentage.

For example, the houses are the collateral value accounted in transaction for mortgage and it is a number on paper or on computer hard drive supported by an appraisal. By the same token everything of value can be converted in collateral for credit.

This is scary staff because with an inflated appraisal someone with good credit can scam money out of financial system.

If your credit is not good you do not have access to 95% of the world's wealth. This limits your options and plans for financial freedom drastically.

Even if you don’t have a poor credit history, some financial advisers and consumer advocates suggest you review your credit report periodically

• because the information it contains affects whether you can get a loan or insurance — and how much you will have to pay for it.

• to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.

• to help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name.

How to repair the credit score?

1. do-it-yourself,
   
   
2. ask for help from your local Consumer Credit Counseling Service (CCCS) or
   
   
3. use credit services.

How to maintain your high credit score

1. Balances above 50% of your total credit limit an any card damage your score the most. Bring all balances below 50% level right away;

2. Evenly distribute the total of your outstanding credit card debt among all your credit cards rather than carry a large balance on one;

3. Use only 50% of your total credit. Do not close credit cards and change your ratio debit to credit available until you paid enough;

4. The optimum number of credit card open accounts is three to five. Having more will not significantly damage your score, but do not close credit cards at all either;

5. Do not close old credit cards accounts. About 15% of your score is determined by the age of credit file. It is good advice to use the old credit card at least once every six months to avoid the account becoming inactive. Credit reports with scores over 800 have in common that is a credit card that is 20 years old or older.

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