Your ability to buy a house, rent, secure a credit card and loan depends on how you repair your credit history

The only way you can do this is by obtaining a copy of your credit report and carefully going over your history looking for errors. Then removing any negative items on your report.

How to get started repairing your credit

The first steps involved are obtaining all three reports from the major bureaus Equifax, Trans-union and Experian. You need reports from all three agencies because not everyone submits to all of the different credit bureaus, so it's possible to get a different score from each one.

1. You need a credit reporting agency that monitors you fico score and where you can have access to your credit report and history. The two better companies for this is Equifax or Experian.

How to remove a negative credit rating

If there are problems that you feel you cannot fix yourself you need a company that specializes in these types of problems. Many of our readers have reported great success in using lexington law to fix credit history reports after you have found errors in them.

Sometimes you need to take on a more a "do yourself credit repair" attitude

To rebuild your credit after you fix any problems the best way is to apply for a imagine credit card or one of the orchard bank credit cards. Both of credit card companies report to the three credit reporting agencies.

Factors that will affect your credit rating

There are many different methods used to calculate your credit score,  most are based on the following factors, with each result giving a different score which then effects your total score:

A record of late payments on your current and past credit accounts will lower your score, this is referred to as credit history.

Matters of public record such as bankruptcies, judgments, and collection items may lower your score.

Owing too much money will lower your score, especially if you're approaching your total credit limit.

A short credit history - this mostly younger people just starting out. In general, a longer credit history is better.

Opening multiple new accounts in a short period of time may also lower your score.

Whenever someone else asks for your credit report, a credit card company, landlord, or insurer, an inquiry is recorded on your file. A large number of recent inquiries may lower your score because it may seem that you are trying for too much credit or are being turned down.

The presence of too many open accounts can lower your score, whether you're using these accounts or not.

Would I really save money if I improve my credit score?

You most certainly would. Low credit scores cost people a lot of money in higher interest payments on loans, credit cards, and insurance.

They can hinder you in finding a job and renting a home.

You can't get a low interest rate credit card, low mortgage rate or even a personal loan.

For example, a borrower who applies for $250,000 home loan and who has a 580 credit score will pay over $350 per month extra than if they had a 720 credit score.

This is self evident for for people with bad credit but it just as important for people with a fair rating. For these people the benefit is that by correcting any mistakes you may raise your score to a good or excellent score.

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