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Quick Credit Repair Tips for 2012

Many people only begin thinking about quick credit repair tips when it’s time to apply for more credit. Unfortunately many banks have tightened credit policies and criteria with several now requiring all applicants for any kind of credit to have scores of 700 or higher to qualify.

There are some very simple quick credit repair tactics you can use to raise your credit score. However it’s important to remember that no two people have the same financial situation. You should always aim at using tactics that suit your own circumstances.

Credit Report Errors

Perhaps the best quick credit repair tip available is to check your credit report for any errors or entries listed incorrectly. You may find entries where an old debt hasn’t been removed or an incorrect listing has been added that should technically belong to someone else. Dispute these incorrect entries and try to get them removed. You’ll be surprised at how quickly you can improve your credit score.

Delinquent Accounts

If you have any accounts that are past due, you should aim at catching up these overdue amounts as quickly as you can. Delinquent payments are reported negatively on your credit report, so catching them up will generate a quick boost to your overall score.

Call your creditors and make payment arrangements with them. If they can see you’re making an effort to get back on track financially, then they’ll be more willing to work with you to create a plan that will get you back in the black.

Timely Repayments

A full 35% of your credit score is made up of your repayment history. If you have a history of being late with your payments, this will be reported and reduce your score. Work through a budget and allocate money to put towards making your repayments on time. Even paying several small payments throughout each month so it adds up to the total monthly amount will help you budget and you’ll be less likely to fall behind so easily.

Outstanding Balances

30% of your credit score is calculated based on the balance of your current debts as they relate to the total amount of credit available. Ideally your balance should be n more than around 30% of the total credit limit. This means you should only have a $900 balance on a $3000 credit card limit. Reduce your balances wherever you can and you’ll see a quick boost to your credit score.

Debt Consolidation

There are certain circumstances where debt consolidation can offer a quick credit repair solution. If you have several accounts that are past due or several credit cards that have balances the same as the available limit, then using a debt consolidation loan might be able to help you.

By rolling some of your past due debts or maxxed out credit card balances into a debt consolidation loan, your creditors are forced to report those old accounts as paid in full. If possible, try to keep one older credit card open as the length of time you’ve had credit is also a factor.

While there are plenty of quick credit repair tips available, you should always remember to use those that suit your own situation.

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