Having a strong credit rating is becoming more and more important.
It is becoming a must-have to get approved for cars, homes and other items you need.
In this article I will give you some tips for restoring your credit rating.
Blitz Collection Accounts- When you begin a new process of applying for new credit, the first thing a potential lender will do is to pull a copy of your credit report and if there are a lot of collection on your report, the lender will feel the same will happen to their account and possibly deny your loan.
You can have collection accounts deleted from your credit report by challenging them with the credit bureaus.
The older the account is, the more likely it can be deleted from your credit report with ease.
Establish new credit- It is impossible to have a strong rating without open credit.
For that reason it is very important to have a good number of accounts that are open and being used.
The key is to use them wisely and not come close to the total available limit.
If you don't already have unsecure accounts such as credit cards or department store cards then you want to apply for some.
If your credit is non existence then such accounts may be difficult to obtain, so a good way to start would be with secure accounts.
Establish a good repayment history- One of the main factors that the credit scoring system looks at is the history of repayment of all debt on the credit report.
The longer you show a month to month timely repayment history, the higher a credit score you can obtain as long as there are no recent delinquent accounts on your report.