Before taking the steps in order to get credit restoration, it is important to source the reasons behind the loan, mortgage or other credit refusal, and to know the sources of a bad credit rating. This will not only make the steps towards improved credit scores easier and faster, but it will also ensure that, once restored, the credit rating will remain healthy. A rejected loan or mortgage application is not always due to bad credit rating only. There can be other reasons behind the refusal. Here is a list of the most common ones:Insufficient income proof It is important to provide official documents proving a regular source of income. If you work in freelance or as an entrepreneur, things might be more complicated and you might be required to provide more documents. Credit restorationIf you have only recently started your career you might have to wait a little before being eligible for the credit you have requested. Limited earningsYour salary might not be high enough for this specific application. One solution in this situation is to get your partner, a relative or a friend to sign the application with you and to agree to be liable in case of a failure from you to pay. Or else you might have to apply for less credit. Collateral support is requiredFor some credit application the security of a fully owned property, such as real-estate property or even a car, might be required.If the cause is also linked to your credit report, then request your own credit history information from at least one of your country's credit agencies. Once you have your report, read it in details and spot the various negative points. If you have problems understanding the document, do not hesitate to look at it with the help of a specialist from your bank, or from a legal help organization.Once the roots of a bad credit are identified it is time to think of a long-term plan to keep the credit rating good after you have obtained credit restoration. The key here is to limit the amount of credit that needs to be paid, to pay regularly at least the minimum payment, to avoid using credit to pay back credit, and to consult your credit report regularly to check for mistakes or irregularities. By doing so, you will ensure not to have to repair your credit rating again soon.
2010-04-07 6:54am PDT
It is good to be pro-active with your credit. By staying on top of any problems you will keep a good rating. Great article