You could get the best loan and credit card rates with a 720 credit score, now you have to be even more qualified. Lenders are getting stricter because they were too lax on what documents they needed and they got burned.The banks learned their lesson for now and are only lending money to the most qualified customers.Learn some simple steps you can take to repair a bad credit report.
The first thing you need to do is get a copy of your credit report. You can do so at www.annualcreditreport.com If you want to take a look at your credit score, you can buy it for about ten bucks at that site too.The underlying information in your credit report is what goes into your FICO credit score. Now that you have your credit report, you have to get rid of the items that are not accurate. You cannot delete accurate negative items, you just have to wait those out.You can file an online dispute with the credit rating companies and get the incorrect info deleted. So do a credit report dispute to get those items corrected and repair bad credit.
If you make late payments every few months or even just once or twice a year, your score will go down. You need to setup automatic payments so you can have all your bills paid on time. You won’t have any late fees this way either.
Next you are going to want to decrease your credit utilization ratio. This is how much of your available credit you are using. You can increase your credit limits or decrease what you owe. Both ways can help you. This may be hard to do now that banks are cutting credit lines even for good customers.
Another way to boost your credit score and improve your credit rating is to not close old accounts. Your credit history is a big portion of what makes up your score so if you close all your 5, 7 and 10 year old accounts, you erase this part of your past and it lowers your score. So follow these well known steps and you can start repairing your bad credit report and getting better rates on your loans and credit cards.