How To Repair Credit and Improve Your Credit Worthiness

June 28, 2012 by  Filed under: Credit 

It’s a fact that maintaining a good credit is easier than repairing a bad one. Bad information on a credit report usually spans the last 7 years of a person’s life which means that in order to completely obliterate them, a person must spend seven years making good financial decisions. Bankruptcy however can last for 10 years while life insurance and other variables have no time limit at all.

The good news is that after several years of being credit rating conscious, bad information shouldn’t weigh much on a person’s report. In fact, some lending companies might not even consider bad information if the most recent years have shown that a person is credit worthy. But exactly how can this be done? For those who want to know how to fix their credit report, following are some tips on how to do this.

Pay Overdue First

The first payments to pay attention to would be the ones that are overdue. These are basically the factors that are weighing heavily on the total credit score. Once they are wiped out of the system, individuals would also be able to experience a sense of relief since they are no longer being badgered by the lender. From there, people would be at a better position to make decisions regarding their finances.

Don’t Go Overboard

The next thing to pay attention to would be the credit card limit. Ideally, individuals should only have a balance that is below their credit limit to lower their credit utilization ratio. Note that the status of the credit utilization ratio affects about 30% of the total credit score so this is really important. Make sure not to max out on those cards. In fact, it would be best if the charged amount is less than 30% of the total limit. For example, if the limit is 10K, the balance should only be at 3K.

Spot Errors and Maintain

Not all information in the credit report is accurate and it is up to the individual to bring them to light. Always check the report for any errors such as loans that have already been paid or accounts that are already closed. Bring them to the bureau’s attention when spotted. When repairing credit, it is also a good idea to order a copy of the report ever 12 months to track the progress.

Seek Help

For those who are unsure about doing it themselves, it’s completely possible to reach out to friends or even a professional for help. A third party should be able to provide or impose a reasonable money schedule that would allow a person to meet their bills on time. There are currently credit repair professionals that have the knowledge and connections to make the move effective for a person.

Of course, there are times when payment is not really possible. When this happens, the best way to deal with the situation is contact the creditor and sees how things can be worked out. Perhaps extend the deadline or have a lower interest rate. Although this might not directly affect the credit score, it would give individuals the time to maneuver their financial position into a more desirable state.

The author helps people when it comes to getting credit reports in South Africa. To read more visit

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