Three Signs That You Are In Need of Credit Repair

It is happening all around you. Your next-door-neighbor may have to file for bankruptcy protection. The family across the street is in danger of losing their home to foreclosure by the bank. Your brother-in-law can't get a decent interest rate on a car loan. But you certainly don't have any credit problems. Or do you In this article we will spell out three signs that you are in need of credit repair, and provide some solutions that work.

Sign #1 Your credit score. You've heard about the importance of credit scores. You knew that everything from the interest rates you pay to your insurance premiums are based on them. But you thought that your credit score was just fine. After all, it is a nice round number, 600.

That is not a good credit score, and is a sure sign that your credit is in need of repair. In fact, any score under 720 could use some improvement. Credit scores range from 300 to a perfect 850. The three major credit bureaus (Experian, Equifax, and TransUnion) collect information about you from the companies that gave you credit in the past, and then write up a report. Your credit score is derived from those reports. The higher your score, the less risk you pose to lenders and the more likely it is that you'll get their best available interest rates.

Sign #2 Negative items on your credit report. It's been over a year since you were late with a credit card payment. Certainly, your credit report has improved since then. Just to make sure, you get a copy of your credit report, and those old, late payments are still shown as negative items. Why

If you don't take action to clean up your credit report, those old negative items will linger for up to 18 months on your credit report. And each negative item will drag down your credit score.

Sign #3 Trouble getting a decent car loan. You've just gotten a new job that pays more than you've ever made before, but it will require a longer commute than your old car can handle. You're at the car dealership, ready to close on the new car you deserve (and think you can afford). You're sitting in that little room with the dealership finance guy, and he's handing you the pen to sign the new car loan. But wait, those payments are higher than they should be. The reason you are getting socked with a much higher interest rate because of your credit report. Now you're stuck. You need the new car to make it to your new job, so you sign the loan papers. Ouch!

These are all signs that you are in need of credit repair. A little time and effort spent on cleaning up your credit report will pay off big time. Depending on your abilities and the severity of your credit problems, you should be able to tackle the repair effort yourself. If not, there are reputable credit restoration companies who will work with you (for a fee).

Be alert for the signs that your credit is in need of repair, take action immediately, and enjoy the financial rewards of a higher credit rating.