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How do I fix my bad credit history?
That's a question that millions of people in the country have been asking. True to say, a bad credit history would mean a lot of things, and most of them are nasty. An auto loan lender might say that you can`t be fully trusted with the money after seeing your credit history. An employer might also say you aren`t responsible enough for the job.
This does not mean that you will be denied all throughout. There would be some lenders who would approve your loan. Just one catch: higher interest rates and lower credit limits. You will still get your money, but you will have to pay a lot for it.
Many people go to credit repair companies for help. They help, that`s a fact, but not all throughout. Credit repair isn`t a very easy task even if you contact these companies. These companies will contact your creditors, ask for new terms and does much of the legwork. That`s a relief provider, at first. But mind you, no matter how convincing they are, they can never erase the negatives in your credit history. Don`t believe their sale tags about removing bad credit from the history for good. Unless, it is an error, bad credit cannot be erased. These files only disappear after a certain point of time, with the heavy issues up to seven years.
Don`t believe that credit repair is equivalent to erasing the bad credits appearing on your history. No one, not even you, has the right to lift off these entries. Unless, of course, if these entries are inaccurate or erroneous which you can dispute with your creditors. But if that isn`t the case, you have to do the repairs on your own.
The first thing you should do is settle your unpaid accounts. This won`t erase the bad credit, but it will be marked as paid. This will tell your potential lender that you are committed to fixing your bad credit. In addition, this will hike up your credit score. Pay your bill on time and budget your expenses. Learn to prioritize things by not buying things that you actually do not need. Bad credit secured loans can also help. There is an unsecured type, but you have to meet certain conditions to be able to get the approval. The secured type can be charged with lower interest than the unsecured but requires you to have cash collateral. Consider the requirements first before applying for the loan.