Tips for Repairing Your Credit
 by: Rebecca Game
Repairing credit scores cannot be deemed an easy task, but also cannot be considered an impossible task, either. Many individuals have less than ideal credit scores due to a number of factors. It can be due to a job loss, where bills fell behind due to reduced household income. Repairing credit scores can be necessary in situations where a medical emergency occurred, and medical bills have piled up beyond reason, or the individual that was injured was contributing to the household income is now unable to work.
Credit scores can be reduced due to a debt ratio that is much higher than the income level, and can also occur if all payments are not made on time or are not made at all. A bad divorce can also contribute to an individual's financial well being, and can lead to poor credit scores when bills are in the middle of an argument and payments are not made on time or are not made at all.
Regardless of the reason for poor credit occurring, be assured that you are not alone. Many individuals need to repair credit scores, and while it can create a dilemma when a loan is needed, even loans are not impossible in most situations, though interest rates may be higher. If possible, try to repair credit scores before applying for a loan, if time allows. Take a few important steps to repair credit scores.

1. Request copies of your credit reports to assist in repairing credit scores.
Lenders rely on three reporting credit bureaus: Experian, Equifax, and Transunion. These three bureaus are where all lenders turn prior to offering a loan to any business or individual. To understand what they are seeing, obtain copies of your reports offered by each of these credit bureaus. You may obtain a free copy of your credit report from each bureaus once per year, or more if you have been denied a loan or have been denied some type of credit due to your scores. In addition to requesting the reports, be sure to also request your credit scores be revealed.
The reports and scores can be requested online at Experian.com, Equifax.com, and Transunion.com, or can be obtained by calling their toll free numbers.

Experian: 888-397-3742
Equifax: 800-685-1111
Transunion: 800-916-8800

2. Once you've obtained your credit reports, review and understand them in order to repair credit scores.
In order to repair credit scores, it's crucial to understand what it is that needs to be repaired. When creating a credit report, the three credit bureaus study the credit history of an individual and calculate a credit score, which lenders use in considering whether or not to approve a loan. This credit score is known as the FICO score, and is calculated using software created by the Fair Isaac Company. Credit scores range from 300, for no credit, to 850, for perfect credit. A credit score below 619 is considered poor credit and the borrower is considered a high risk to a lender. Next