So you got your hands on your credit report and you now have some information on your hands to work with. The next step in learning more about your credit situation is to understand what your credit score means and that also goes for the other information that comes with it. These are things that you can use to decide how to act and exactly how you want to go about your credit repair.
Your Credit Score
The first thing you have to look at is your credit score, and there’s no way around it. It’s a simple number that will either make you jump or relieve yourself. Between 300 and 850, your credit situation will be rated according to your credit history. Of course, you can look at all the stats in your credit report and understand exactly what went wrong, but a simple score can immediately give you an indication of where to go next for your credit repair. A bad score (low) probably means that you should seek immediate assistance from an expert to get your credit repair process under control, while if you consider the score to be good news (high score), you can take a bit of time to sit back and look at things and build the ultimate plan to get out of it. There are a few differences in the scores out there so you will want to educate yourself a bit on that, but overall the same rules apply.
Check Credit Report Accuracy
And then, concerning the credit history that you see, it's important to note that this information will follow you for a long time whatever it is, but it isn't completely permanent – a credit score can and should be improved if too low and indicate that you need credit repair. Check your credit history for any mistake and mark the instances on which you've fallen behind 30 days or more concerning your payments. Not everything is set in stone and you can have the opportunity to dispute.
Credit Score Formula
How is your credit score calculated? Well, the famous formula does evolve with time, but it mostly consists of your payment history and the amount of debt that you have. If you paid your bills late, need credit repair, have had collections or even went bankrupt, that will affect about one third of your score. Your debt then counts for another third of your credit score. If you have a tendency to reach the top of your limit and stay there, chances are that you're not going to score well. And finally, there are other things that form the last third of your score such as for how long you've been involved with credit and the number of applications you've made for a credit card. That last variable isn't a big deal unless you've been aggressive with your inquiries which indicates that you're in some kind of trouble.
So there you have it. Your credit score is very important and should be the central piece of your strategy for credit repair. Improve yourself in all those areas and get an update on your score after you’ve made some credit repair efforts.