Ok, so you’ve got some bad credit reports, and need to kix them quick smart.

I can empathize with you, my name’s Justin and I know all about having a bad credit report. I was there and know only too well what it was like, but I got myself out of the financial hell I was in.

Let me show you how.

Having a bad credit report can cost you big time, it’s hard to get a loan for one, but even when you obtain a loan it will be financial suicide.

See when you have a bad report the creditors will not trust you too much and will therefore protect there investment in you by charging you extra. It makes sense, you will get penalized because you are a risky customer.

They will only agree to giving you a loan for credit if you agree to go on a high interest rate loan. It may only seem like a few hundred dollars extra a month but spread over a few years will add up to thousands. So you need to do everything you can to reduce your credit interest rate, you can only do this by having a great credit score adn clean looking credit report.

Ok, what do I do you ask? well you need to follow our the following recommendation, this is what I did and my report and score improved drastically, I increased my credit score by a  few hundred points.

Top Tips for Bad Credit Reports:

1. Don’t consolidate your loan
I know it seems counter intuitive but it’s true, consolidating your loans is a sure fire way to damage your credit score. You see you need to have records on your credit report of CURRENT credit accounts, like credit cards and other loans. As these act like report cards on your payment history. A Payment history record is the number one most important piece of information on your credit report. So keep them open and try and negotiate to pay them off - see if you can better your terms or reduce your interest rate but don’t close the account, or you will close off your chances of improving your credit score.

2.  Imporve your Loan to Credit Ratio
This is another smart tactic to improve your credit report. See when you have a have a high percentage of available credit to the balance of your loan then you are in trouble. You need to close the gap. If you have around three accounts with a small loan to credit ratio then this puts you in good stead. See if you have a lot of available credit then lenders will get nervous that you owe so much money and will not be able to service the loan - this is a risk that will damage your credit score.

I hope these tow tips are helpful for you. They will certainly help your credit score and get you back into the land of the living.

Don’t forget that your credit report and credit score are the most important assets you have, if you damage them then it’s not the end of the world for you but it comes close. It’s nearly impossible to get a home loan, car loan and credit cards, we live in a world of lending and debt - if you can’t get access to finance you are going to struggle.
Written By:: Justin Fox

This entry was posted on Friday, November 2nd, 2007 at 3:49 am and is filed under Fix Your Credit Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.