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    How to Fix and Repair Your Credit Card

    Let’s face it; it’s difficult to do many finance-related things in the West if you have poor credit. For example, it can be a serious hindrance in your ability to start that business you’ve always dreamed about.

    With that said; there’s hope for credit repair with online advisors such as repair.credit, who offer both information and credit counseling. As a short introduction to the type of advice you’ll find there, we’ve compiled a few tips to help guide you on the road to credit repair.

    How to Fix and Repair Your Credit Card

    Take a Look at Your Credit History

    This is easier today than it has ever been in the past, due to online availability of the relevant reports. You can order your credit report directly from a website; in fact, you can get a copy for free once per year from the three major credit reporting bureaus - Equifax, TransUnion and Experian.

    There are some situations in which you’ll want to see your credit report more than once per year - there are services available that allow this for a monthly fee, if you want to go that route. To get the process started and obtain your gratuity report, head to AnnualCreditReport.com and sign up.

    Rectify Errors on Your Credit Report

    This is where the benefit of requesting all three reports comes from; since each of the reporting agencies employ different methods to obtain the necessary information, any discrepancies will show up independently. Rectifying mistakes can be very beneficial to your overall credit score, which generally means lower interest rates when you apply for credit cards and loans.

    The electronic nature of credit report viewing these days also makes it much easier to file a dispute if you find an error; just follow the on-page directions. If you have any old delinquencies, this also helps you decide when the right time to apply for that housing or car loan is - note when the delinquencies automatically resolve themselves (usually after 7-10 years); and then apply. Build up your credit score in the meantime by making on-time payments and biting into your principal on outstanding loans.

    Get Yourself a New Credit Card

    Get Yourself a New Credit Card

    Do not treat this advice with skepticism - applying for a new credit card is one of the best ways to start rebuilding your credit history. A few of the metrics that contribute to your FICO score involve the number of open accounts you have in good standing, as well as your balance to debt ratio. By treating this new card or cards as your “credit-builder”, which means paying balances as soon as they register, you’ll start to notice an increase in credit score after just a few months.

    If you have bad credit, and cannot secure a new card, then you should seriously consider applying for a secured credit card. You can almost always get one of these - it ties the amount of money you can borrow to the existing amount of money in your linked bank account.

    Here’s an important note: if you’re applying for more than one credit card, make sure you send out all applications within a two-week period. Inquiries can temporarily lower your credit score by a handful of points; however, if you make several within a short period of time, they’re all treated as a single inquiry.

    Obtain a Secured Loan

    This helps rebuild your credit if you have a Savings account or a Certificate of Deposit, because then the interest rate of the loan - assuming you get it from a credit union - is dependent on the amount of money you have in the mentioned financial vehicles. The benefit comes from the fact that secured loans are reported to the credit bureaus, which functions as yet another positive addition to your credit profile. You can also acquire a car loan or a mortgage loan for the same effect.

    Ultimately, credit repair rests almost completely on two things: the kinds of loans you have, and your continued history of paying down these loans. Having both credit cards and a secured loan is very beneficial, and you’ll start to see significant changes in months instead of years.

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