A credit report is a report, which reflects a consumer’s credit history. The credit report contains information pertaining to loans as well as credit accounts. It also gives an insight into a consumer’s entire payment history, current inquiries and bankruptcies, if applicable. More appropriately, it highlights a consumers’ creditworthiness.
Importance of credit report repair:
People often debate, whether a credit report can be repaired or not. There are many ways by which credit report repair can be brought about. Credit report repair is vital for any individual with a bad credit history.
A bad credit history can mar ones eligibility for availing loans for different purposes, for getting employed and for getting a good score in ones credit report rating.
Ways of credit report repair:
Credit report repair is certainly possible and understanding the basics can make the entire process simple and easy.
One needs to keep a track of the expenses:
Maintaining a balance between ones income and expenditure is very much necessary. In the event, when expenses exceed the inflow or is close to it, this is the correct time to set things straight and apply breaks with regard to expenses.
If one has had a bad credit report or is nearing one, a budget regime can be worked out. Abiding by the regime ensures repair of the report in due course of time. Adherence to the regime also prevents one from getting trapped in bad credit.
Controlling debts and expenditure:
Impulsive expenses ought to be avoided by all possible means. When applying for a loan, be it for any purpose, a lender usually views controlled expenditure as a sign or proof of stability.
Using credit to repair credit report:
When applying for a loan, creditors usually scrutinize the credit history of individuals. One can make credit report repair effective in the following way- by making purchases, which may not be very expensive, at regular intervals and making payments within the time allotted. By doing so, the purchase amount does not attract any interest charges and credit report repair gets effected over time.
Keeping track of the credit report:
It is very essential to keep track of the credit report. However, viewing the credit report too often gives the creditor the impression of an individual’s unstable financial status. Depending on the number of times, an individual views the credit report, the individual is marked for a period of two years. If however, an individual is declined credit, the credit report can be of immense help as it reveals the exact reason for the credit refusal. If it is found that, credit refusal is for incorrect reasons, the reason can always be reversed or corrected.
Credit Repair Organizations Act
There are many credit report repair companies, which assist individuals in correcting credit reports. There are a few norms, which these credit report repair companies are expected to abide by, while dealing with consumers. These norms are embodied in the Credit Repair Organizations Act. This Act has been implemented to safeguard the consumers from scams related to credit repair.