New Horizon Business Services Inc.

However, a wise consumer knows repairing credit cannot be done in an instant and that he himself can take positive steps in improving his credit report. In this article, let's discuss the three major steps that you can do to erase that negative mark in your credit report. Following these steps requires time and effort on your part but these steps have been tried and tested to give the results you want.

1.Examine your credit report. Financial experts recommend checking your credit report at least twice a year to ensure its accuracy. Consumers are entitled to receive one free credit report every 12 months. To get your free annual credit report, call 1-877-322-8228 or visit annualcreditreport.com. This website was put up by the three major credit bureaus- Experian, Equifax, and TransUnion to provide annual credit reports for free. However, if it's your second time to request your credit report, it may cost you $9 for each bureau. Take note that each credit bureau does its own reporting so it is advised to obtain a copy of your report from each of the three major bureaus.

2.Dispute Mistakes. After receiving your credit report, carefully examine if it for contains errors, false charges, or out-dated information. If you found a mistake in your report, immediately send a letter of dispute to the credit reporting agency right away. In your letter, point out the items you're disputing and provide a clear explanation. It is also a good idea to include copies (NOT ORIGINALS) of receipts or documents that support your claim. You can also attach a photocopy of your credit report with the items in dispute encircled. Send your dispute letter via registered post mail and remember to keep records of your correspondence with the bureau.

3.Get a secured credit card. If you have a low credit score because of poor payment habits, you can also apply for a secured credit card. Secured credit cards are particularly designed for people with bad credit. These cards require the holder to put in a deposit ranging from $200 to $1,000 depending on the card, as security for his debts. Usually, the amount of your credit limit is based upon the amount of security you deposited in your account. Find a secured credit card that reports your payments to the three major credit bureaus as this to ensure improvement in your credit report. Finally, use your secured credit card with care. Charge only what you can afford to pay and make sure that you submit your monthly credit card payments on time as this is the only way you can enhance poor credit rating.

keep me in mind

Copyright 2009.