Easy Credit Restoration

If you are interest in learning about the credit repair process then you will want to read this article. We will be discussing the two key components of credit restoration. After reading this article, you should have an understanding of what you need to do to improve your credit score.
Clean Up Your Credit Report

Did you know that 89% of all credit reports contain errors? Because the credit bureaus are not required to confirm information in your credit file unless you file a credit report dispute, it is critical that you look at your credit report frequently. If you know you are going to make a major purchase, like a home or a vehicle, then you should look at your credit at least six months before to doing so.

If there are mistakesis incorrect data in your credit file, you will want to dispute these with each of the three major credit reporting agencies. Once they receive your dispute, the creditors will have 30 days to respond. If they fail to verify the account or fail to respond, the credit bureaus must delete the account from your credit file.

Establish Good New Credit

Establishing new credit with an excellent payment history is something that many people neglect to do when working on credit repair. The reality is that creating new credit is just as important as eliminating derogatory items. There are several ways that you can create new credit even if your credit is bad.

A Secured Credit Card

Guaranteed credit cards are a great way to reestablish credit. You place a deposit with the lender and they issue you a credit line equal to your deposit.
CD Loans

A Certificate of Deposit Loan is a loan with your bank or credit union that is secured by a certificate of deposit held at that lending institution. The term of the loan and the certificate of deposit are typically the same.

Department Store Credit Cards
Retail stores typically have more lenient underwriting guidelines as compared to a usual unsecured MasterCard and Visa. The reason for this is of course that they want you to spend money in their stores.

Gas Cards

Like department store credit cards, gas companies have more lenient underwriting because they want you to spend money with them. Since gas is something you are going to spend money on anyway, this can be a great way to establish a payment history.

Merchandise Cards

Merchandise Cards are another way that you can build credit. These are catalog companies that issue you credit so that you can shop in their catalog. You do need to be careful and make sure that you buy smart from them as many of their items can be overpriced. The biggest down side is that most merchandise cards only report to one or two of the credit bureaus