Credit Repair - How to Repair My Credit Score to Receive Better Interest Rates

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In order to get the best interest rates for credit card, car and home loans you need to have a decent credit score. In this article I will give you some tips on improving your credit to get the best interest rate possible.

It is important to keep in mind that you have three credit scores, one with each of the three credit agencies, Equifax, Transunion & Experian. You want to keep an eye on all three mainly because it is impossible to know which one a particular creditor is using to qualify you for their loan.

The most recent negative entries hurt your credit scores the most so you want to avoid these at all cost. If you have a credit account that is about to go into collections and show up negatively on your report it is a good idea to take care of it before that happens. You can negotiate with the creditor or collection agency to settle it for less that you originally owe on the loan. Third party collection agencies usually buy bad debt for pennies on the dollar, this means that even at as much as 50% off the total original balance they are making a profit.

If you receive a copy of your credit report and find that you have recent collection accounts that are on your report but do not belong to you, you want to challenge these with the credit bureaus as soon as possible to have them delete from your credit files.

The credit scoring formula also takes into account a history of payments made on time, make sure any monthly payments you currently have don't fall more than thirty days behind, as they will show up on your credit report as 1-times 30 days past due.

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Source by Tony Banks