McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Repair You Bad Credit History

Bad Credit Repair Loans
Bad Credit Repair Loans
You can improve a bad credit history. It is not difficult and the sooner you begin the process the better. The first step youshould take is torequest your credit report from Experian, Equifax, and TransUnion. You are entitled to one free credit report from each credit reporting agency once every twelve months. If you go to the Federal Trade Commission web page at you will find a full description of how to obtain your credit reports at no cost.



Steps to Repair Your Bad Credit Report

  • Check the information on your credit reports to make sure it is accurate. If you find a mistake on any of your credit files, you have the right to file a dispute either online or in writing with the credit reporting agency.
  • Pay off any accounts that are in collection or judgments that exist against you. If you cannot pay off the entire amount due make arrangements to pay off the balance overtime. Many collection agencies will be willing to discount the amount you owe on debts in question.
  • Pay down any credit card that is over 50% of the available credit line. It is often possible to obtain lower interest rates, have late penalties forgiven and monthly payments reduced if you work with the credit card issuer. Paying down credit card and line of credit balance to less than 50% of your total credit line will improve your credit score. Debt balances of less than 50% of the available credit is important when credit report scores are calculated, because the amount of money owed and the amount of available credit comprises 30 percent of the totalcredit score.
  • Once you have gotten your balances on credit cards to below 50% you may want to obtain a new credit card and make sure you pay off the balance on the new card every month. Charging small amounts and paying them off every month will help improve your credit score. If you are not approved for an unsecured credit card, you may be able to obtain a secured card or a home equity loan.
  • Keep track of the progress you are making. There are credit monitoring services that for a small fee will let you analyze you credit score monthly without adding monthly credit inquiries to your credit report. Multiple credit inquiries will lower your credit score.

Debt Calculator
Debt Calculator

Bad Credit Repair Loans

Repairing bad credit with a debt consolidation or bad credit repair loans ora mortgage loan may seem counter-intuitive but it is possible.

Consistent, timely payments ofdebt consolidation or bad credit repair loans or a mortgage will demonstrate to the credit rating agencies that you are a good credit risk. If you do fall behind on bad credit repair loans or a mortgage, be sure to send the payment before it is 60 days late. Normally late payments are reported to the credit rating agencies as 60, 90 and 120 days late.

If you have a bad credit history you will be classified as a higher risk borrower which will mean you will pay a higher interest rate and possibly higher origination fees on bad credit repair loans or a mortgage but if you are able to make on time payments you will be on the way to establishing a better credit score.

If you own a home and have some equity in your home you may be able to obtain a home equity loan. A home equity loan could be used just like unsecured bad credit repair loans to repay your unsecured debts, credit card debt or medical bills. You could reduce all your monthly payments to a single monthly payment typically at a lower interest rate than you are paying on your unsecured debts and if you consistently make the home equity loan payments on time you will not only get out of debt you will build a positive credit history.

You do need to balance your need to establish a monthly payment amount you can afford to pay on time and the span of time over which you will pay the home equity loan back in its entirety. The longer the term of the home equity loan the more interest you will pay on your debt over that term.

The trick is not to build-up your credit card balances or other debts again once they are paid down from the proceeds of bad credit repair loans or a home equity loan. That will only add to your debt and once again you will find yourself in a financial nightmare. Payments you cannot afford, lower credit scores and in the worst case scenario you could lose your home which was used as collateral to ensure payment of your home equity loan.

If you are considering a home equity or unsecured debt consolidation loanto improve your credit rating and your cash flow situation you need to realistically evaluate your financial situation. If you are unsure as to how to do this there are legitimate financial counselors and credit counseling agencies who will work with you. These professionals may be able to negotiate lower interest rates or reductions in the debts owed as part of a legitimate debt consolidation and repayment plan. You may find a lender who will help you evaluate a debt consolidation approach.

It is important to keep in mind the process of settling your existing debts and rebuildingyour credit report will not happen immediately it will take time. You will have to be patient and willing to stick to your financial plan over a period of time. You likely did not get into your current financial difficulty quickly and you will not be able to pay off your debts and get yourself into the position of being able to live comfortably within your means overnight. Repairing your credit will take time and financial discipline but in the end the quality of a financially stress free life will be worth it.

>> Click here to get an Instant Payday Loan!<<