Credit Repair Made Easy - Erase Bad Credit And Establish AAA-1 Credit Fast

Credit is used every day by millions of people yet most do not have a clear understanding of how the credit reporting system operates. Most people only know that they can flip out a credit card and purchase what they want and pay for it some time in the future. The practice of "buy now, pay later" has assumed a large and significant role in our society. Credit indicates faith in the ability and willingness of the customer to pay for what he buys within a specified time. When you make a purchase, and charge it with a credit card, you are using consumer credit. This means, obtaining the goods or services first, and paying for them sometime in the future. Credit makes it possible for one to enjoy needed items immediately. For most people, buying those big-ticket items, such as, cars and houses would be virtually impossible without good credit. Maintaining a good credit history is essential even though you may have cash that would make buying on credit unnecessary. Due to increased use, it became necessary to issue reports on credit histories of consumers. Credit reporting agencies, also known as credit bureaus, were formed to supply these reports. Credit bureaus compile and sell information about consumers, and are a principal source of information about your credit history. They are financed by members, which include banks, department stores, credit card companies, finance and mortgage companies and other credit grantors. They sell this information to lenders or any credit-issuing firm from which you have requested credit. The information is sold in the form of credit reports. Before creditors give you credit, they check your credit report. Your credit report shows how you have paid your bills in the past. It provides credit grantors with information they need to evaluate your creditworthiness. Your credit report contains the following information: Your name, date of birth, residence records, Social Security Number, occupation, employer, marital history, repayment pattern on credit cards, installment loans, and other credit accounts you have with different creditors. Your credit report may also note other matters of public record, such as judgments or bankruptcies. If your credit report shows that you have been reliable in the past, then in most cases credit will be granted. Past credit experience which shows delinquent payments, repossessions, lawsuits, charge-offs or bankruptcy may lead creditors to deny you credit. Many people mistakenly believe that once you have bad credit that there is no way to change it. Don't believe it. You can change your credit report for the better. If you have problems with your credit history, there are steps you can take to help solve your credit problems. The first step is to obtain a copy of your credit report. The law says that you have the right to know what is in your credit file. You should want to learn what information is being distributed about you by credit bureaus. If you have been denied credit within the past 60 days and one of the reasons for the denial was "unfavorable" credit report, you have the right to get your report at no cost. If not, the credit bureau may charge you a fee for giving you information. After you have received your credit report, examine it to see whether all information is accurate and complete. Make a list of all the errors and negative items. If there is a negative item in the report, you have the right to dispute that item. You should write to the credit bureau and explain why you think the information is not correct. Each item on your credit report must be proven or it cannot remain in the report. Send your letters by certified mail with a return receipt requested. When the credit bureau receives your letter of dispute, they are required to investigate and advice you of the results of their investigation. If a disputed item cannot be verified, the credit bureau must delete it. If you disagree with the results of the reinvestigation, you have the right to add a statement to your credit bureau file in 100 words or less, explaining your version of the dispute. After making any corrections on your report, you have the right to demand that the credit bureau send corrected copies of your report to all creditors who have checked your file within the past six months. Job applicants can have a corrected copy of their credit report sent to anyone who received a copy during the past two years for employment purposes. Once you have cleaned up your credit report, you are ready to start adding positive credit items. There are several ways you can begin to build good credit. A secured credit card is one of the easiest ways to build good credit. There are financial institutions that will issue a Visa or MasterCard to you if you open a savings account at their bank regardless if you have bad credit or no credit. A secured credit card is guaranteed by a deposit that you make with the financial institution. Each financial institution has its own requirements. So read the fine print before applying for a card. Make sure the credit card issuer reports your payment to all three major credit bureaus. Another way to add positive credit information to your report is to take out a loan from a bank and pay it back promptly. To carry out this plan, go to your bank and open a savings account and use it as a collateral for a loan. Usually the bank will be glad to give you the loan since there's no risk to the bank if you default. Repeat the above steps at two or three banks. Make payments on these loans for about four to six months and then pay off the balance in lump sum. Return to each bank and ask to have the hold placed on your savings released. Remember the whole reason you borrowed against your savings deposit is to rebuild your credit. It is important these banks report your payment histories to the credit bureaus. So before you carry out this plan, make sure they'll report your payments to the credit bureaus. Department stores will often make you a loan, by means of a charge card. You can obtain department store credit cards. Once you have established good credit references using secured credit card or bank loan technique, you will find it extremely easy to get department store credit cards. You can ask someone with a good credit record to cosign on your application for credit. This is an effective way to speed up the process of rebuilding good credit. You can clean up your bad credit, add positive credit information, and get yourself back on the right track. A good credit rating will enable you to receive and enjoy some of the better things in life.