Trying to figure out how to do smart credit repair can be frustrating at first, but learning the steps yourself gives you a lot of power. For starters, you’re not going to have to try to trust a credit repair organization for all of your needs. This makes you have the skill to always be able to take care of your finances even if this situation were to happen again.
So, let’s break down the topic of credit repair into more manageable pieces. One of the top concepts within the sphere of credit repair would have to be your credit score. After all, you’re going to be going after credit products in the future, and it just makes sense that you’re going to want to actually figure out what score is going to hold the most weight, right?
Right! There are quite a few different scores out there. There’s the one issued by the Fair Isaac Corporation. That’s referred to as your FICO score, and it’s the one that holds the most weight. It’s the one that will generally be pulled when you’re trying to go for a home loan or an auto loan. However, there are other scores that also pull weight as well.
Each of the 3 top credit bureaus are going to have their own score. Experian, Equifax, and TransUnion will have their own score.
Lenders, financial institutions, and even dealerships will pull reports from one of these agencies, or possibly all three of them if they feel they want to get a good feel of your financial history. What you really need to do is make sure that you have the same information across all three credit reports. You will want to pull as many of your credit reports as possible just to make sure that everything is going the way it’s supposed to. This is also a great way to make sure that inaccurate information isn’t hiding on your report. These inaccurate negatives can really hurt your credit score over time, and make it harder to get credit in the first place.
So the top thing that you need to do from here is to not only look at your credit, but make sure that you’re protecting it. Don’t apply for too much credit at once, since this hurts your score. In addition, you also want to make sure that you focus on limiting how much you use on your credit cards. Utilization is something that hurts your score. Creditors want to make sure that youíre not living on your credit cards with no hope of paying them back.
What about if you get over your head? Well, that’s what we’ll actually cover next!