A bad credit report is like a pebble in a shoe that hinders the progress of a person or company. However, bad credit reports do not remain the same for time immortal. They can be changed and made better by either hiring a professional or DIY style.
There are many tried and tested methods of improving a credit report. The first step in improving a credit report is to order it from one of the three credit reporting agencies. The financial history and record of late payments is maintained in this report. The entries can be checked for discrepancies and mistakes by tallying the appropriate bills and receipts. If any discrepancy is found then it is important to intimate the concerned agency immediately.
Another important step is to satisfy creditors who have to be paid to make the report more presentable to future creditors. This may not always be easy because creditors are usually intolerant of debtors who do not pay up on time. However, many creditors will offer a helping hand when it comes to repayment of their debts. All the outstanding debts are to be paid in order to make a fresh start. However, this process is lengthy and may take at least a year to complete.
Other small steps that can be taken in order to improve a person$%:s credit rating are- using the credit card sparingly, not taking credit, disposing off the extra credit cards, using cash whenever possible, paying all the bills and taxes in time, and avoiding expensive purchases using credit cards.
It is important to pay any pending bill to the fullest because fully paid bills show up as favorable items on the credit report. Any personal misfortunes such as a divorce may directly affect the credit rating if the alimony terms are harsh on the concerned party. Bankruptcies and business losses should also be avoided lest they prove to be a burden that is not relievable.
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