Credit score is an essential criterion to obtain any kind of loans from banks and financial institutions. Banks do ascertain credit scores before sanctioning loans to their applicants. Besides this, there are certain other areas, where credit score plays a vital role in our life. For instance, when an individual approaches a bank to avail for a home loan and to obtain an insurance coverage, it is obvious that the banks and insurance companies do consider his/her credit score. Even at the workplace, the company may check the credit score to decide whether to hire an applicant or to promote a present staff to senior level position.
Tips to Repair:
If you are suffering from huge debts and damaged credit, then it is the time to take things in your hand to eliminate the debt issues and repair your damaged credit.
The first and foremost important thing to repair your credit is obtaining a copy of credit report from all three major credit agencies. With newly enacted laws and rules, now all are entitled to get a free copy of their report once in a year. You can also get this copy through any online credit bureaus. You should go through this report with utmost care for any kind of errors such as payments that you have not made or late payment that you have not incurred or any other activities that you are not able to recognize. In such a case, you should file a dispute for the false charges with the credit agencies. There are a number of laws today such as FCRA (Fair Credit Reporting Act) to protect you against such misinformation on your credit report.
Next thing to repair and avoid damaging your credit score is to make timely payment of your bills and loans. The final step is to make smart and wise financial decisions. For this, you can begin with a no-nonsense budget and follow it properly. Last but not the least, save more and spend less.