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Repair Credit and Build Credit – How To Do Them Both

Todays Date: December 13, 2018

If you find yourself struggling to get a credit card or if you have no credit score and debts from the past, you need a strategy to repair your credit and build your credit. These two things can happen at the same time and neither of them has to cost you a lot of money.

When you repair credit, the first thing you need to do is get your credit score and credit report. It is not a bad idea to go ahead and pay for your score because your credit score is the gage of your credit profile. Knowing your credit score means you’ll know what the lenders and creditors will think of your profile without even looking at the report. There are certain cut-off scores that creditors and lenders will not go below. Right now in the mortgage industry, most lenders will not lend to any person whose score is below 620. This was not always the case. It wasn’t very long ago that some lenders would go down to 500. There were a lot of different programs for different credit scores. The credit market is a market that is always changing and no doubt, the score requirements will change again soon in one direction or another.

So, if you are trying to repair your credit and build your credit because eventually you want to get some sort of loan, it is a good idea to know where you are starting from. Get your credit score.

After you’ve gotten your report and you know what is detrimental to your credit profile on it, you can address these things with your creditors. It may be necessary to pay some things off. Maybe you already paid something off but your credit report says you didn’t. There could even be an account that is your brother’s or mother’s because you have a similar name or social security number. You simply need to read through the report and mark the items that are a problem for you and handle them either directly with the creditor or through the credit bureaus by sending credit dispute letters.

Building credit is not that difficult anymore. There are plenty of secure credit cards available for credit building. Yes, most of them may cost you a bit. But the cost will be worth it in the end. Nothing worthwhile comes for free, as the saying goes You are buying your credit. It is as simple as that. Another option is to use your bank if you have a good relationship with them and if they will report to the credit bureaus. If they don’t/won’t report, don’t bother with them. If they will report, they may do a secure loan with you on your car title or on a deposit. Generally, this is a pretty smart and inexpensive way to build credit. But, many small banks don’t report to the credit bureaus. Often times the larger banks don’t want to deal with this kind of business. You have to build a relationship. Many banks, even bigger ones, still value human relationships and they will consider you as a person. Try to look your best when building this relationship!

These are tips I have imparted to many of my own clients, and I know from their testimony that they can be very effective.

Matthew Wierzbinski is the owner of http://CreditBlossom.com, which offers both written and video instructions on how to repair your own credit. It also offers the public free use of its amazing credit repair letter generating tool, the free and easy Credit Repair Letter Wiz™, which can be found at http://creditblossom.com/Content/LetterGeneratingTool.aspx .

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