If you have a low credit rating then you probably already know how difficult it is for you to get the lowest interest rates for most consumer loans, and you may have even had difficulty getting approved for a particular loan in the past. If you do not enjoy being confronted with such hardships when trying to get a loan then you can then either stay compliant and not do anything about your credit rating or you can put the time in to repair your credit rating so that it is no longer hurting your chances at receiving the best interest rates or your chances at getting approved for a specific type of loan. To repair credit rating with success you must first get a grip on exactly what is causing your low credit rating and typically this involves going through your credit report to see where you are going wrong. Once you have identified where the problem areas are you can then establish a plan that can hopefully repair your credit rating without much stress on your end.

A lot of my clients come up to me and exclaim, "repair my credit rating" and I then tell them that it all begins by first understanding what is causing your credit score to remain at such a low level. The first thing I tell the person is that they are going to have to obtain a copy of their credit report, and if the individual hasn't checked their credit at all over the past year then they should be entitled to a free copy of their report from each of the three major credit bureaus. The best way to do this is to go to AnnualCreditReport.com as this is the one website that is fully endorsed by the government and you can be rest assured that it is a reputable operation that won't require you to submit any of your credit card information or other details.

Once you have gained access to your report it is then time to see what is causing your credit scores to be so low. The most obvious and common reasons that become readily apparent upon viewing the report include errors, defaulted accounts, late payments, and high credit card balances. By correcting some of these things you can easily repair your credit rating in a fairly short amount of time and without too much effort. Just fixing the errors that are on your report can cause your credit rating to jump by a significant margin—sometimes over fifty points in less than a month. Fixing errors is not that hard if you know what you're doing, and most of the time you either need to contact the credit bureau or the actual credit account to resolve the error. I've found that it is most of the time due to the credit account reporting something incorrectly, and you should therefore contact the credit account holder before you contact the credit bureau to avoid getting the run-around.

Once you have fixed any errors you should then focus on resolving any accounts that display have any late payments or defaults. These kinds of things will severely lower your credit rating and once they are fixed it will then become much easier for you to improve your rating over time. The next best thing you can do is to pay down any high balances on your credit cards as a good proportion of your credit score is calculated via what is called the "debt to credit limit ratio" as this is the ratio of outstanding debt on your credit cards to the amount of credit that each of your cards makes available to you by virtue of your credit limit. It is best to keep your balances under about thirty percent of your total credit limit and by doing this you can dramatically increase your score. By doing these sorts of things you can repair a bad credit rating in a relatively short amount of time and this will make you eligible for some of the better consumer loans and interest rates so get a copy of your credit report and get to work.

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