Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Your FICO® Score and Improving Your Credit Rating.

Once you have paid back your outstanding debts, you can concentrate on rebuilding your credit rating. Although you can’t do anything about the bad history that you have and the fact that previous debt problems will show on your credit report for 7 ½ years, you can start to rebuild your credit and eventually have more positive information on your FICO®credit score and your credit report than the negative items of the past.

You will do this by applying for small amounts of credit and paying them off on time all the time to start building a good credit record. Timeliness is the operative here.

You should only start doing this once you have sorted out all your debt problems and are in a financially stable position where you know that you will be able to make all your payments on time.

If there were specific reasons why you got in debt in the first place that haven’t been completely resolved then it would not be wise to get this additional credit until you have that part of your life sorted out.

You will only get more credit after you have created an updated budget that will allow for the repayments and show that you will be able to manage the new debt repayments without undue stress.

Thus the journey begins - your credit rating will begin to rise when you have taken a proactive stance to improve your credit. Subsequently, your FICO® credit score associated with your credit report will rise as well.

Lending institutions will look at the positive results you have had with your credit in more recent times and this will make it easier for you to deal with them in the future, and be able to acquire the most credit at the lowest possible rates.

While you will be wary of getting credit cards again, and rightly so, they can be useful for rebuilding your credit. To do this, you will get a card that has a relatively low interest rate and a small credit limit and you can use it to buy essential items only. You will need to pay back the full amount at the end of the month so you don’t start building debt again. If you purchase and pay back within the month you won’t be incurring interest charges but you will be building a better credit rating. Later you can make some bigger purchases on essential items once again and then pay them off over a period of time making sure that you always pay the minimum amount required, or better still - more than the required monthly payment.

After you have had your credit card operating successfully for some time and have paid it off in full, you can apply for personal loans and build your credit by paying them back in full, on time, all the time.

Eventually people will be more interested in your recent good credit history and they will not focus on the problems that you had in the past.

Restoring/improving your credit rating is a process and takes time. However, the rewards can be significant, in that your credit rating by virtue of your FICO® credit score and credit report will bring you the lowest possible interest rates on needed capital now and in the future.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

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Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Monitoring Your FICO® Credit Score and Student Loan Debt.

The percentage of people who are getting behind and defaulting on the repayments of their student loans has been steadily increasing over recent years. It can be very difficult when you finally graduate and find that you owe thousands of dollars in student loan debt and the job that you have isn’t paying quite enough to cover all your living expenses and the payments required on your loan.

It is very easy to fall into this debt trap, but neglecting this debt, you will quickly find that your credit rating associated with your FICO® credit score on your credit report is in a free fall, and you will be forced to begin your quest for credit repair.

Many students get into difficulty paying back their loans and they begin their working career with bad credit due to defaulting on their loan. You don’t want this to happen and you will need to factor into your budget the repayments of the loan. Make this debt elimination a high priority and your credit rating will not suffer from a student loan debt.

While payment is due once you graduate or stop with your education, there is often a grace period of 6 to 9 months after that date, depending on the type of loan that you have. The first thing you will need to do if you are having problems paying is to determine what type of loan you have and what options are available to you. You will need to be proactive, because this debt will cast a bad credit shadow on you until it is paid in full.

This grace period will give you time to find a job to help make the payments.

With some loans, you will begin to make interest payments immediately, whereas others will allow you to pay the interest over the term of the repayments or at the end of the repayment of the actual loan.

This is why it is important for you to find out what type of loan you have and what options are available to you to help with your financial planning and make sure that you don’t default on the loan repayments.

If you do default on the loan there are various consequences that you need to be aware of. The full amount of the debt could be called up for repayment in total or it could be turned over to a debt collection agency.

You could incur additional late fees and collection fees and your credit history could be severely damaged.

There are many more areas that will have impact on your life, so it is wise to work through any issue with your lending advisor and do so with the assistance of the budget that you will have already prepared. They might be able to arrange a consolidation of debt that helps you pay off your loans at a lower interest rate, thereby reducing your overall payments that need to be made each month.

Student loan debt is no different than other forms of debt-when they become delinquent, your credit rating will deteriorate. Over a period of months, your FICO® credit score on your credit report could be so low, as to prohibit you from attaining any line of credit. Do not fall into this trap.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

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