It is extremely important to maintain a good credit report which will generate a good credit score. Your credit score is the reflection of your financial responsibility. A low credit score reflects that you have been unable to pay back your debts on time and perhaps even defaulted on them. It also signifies that you have taken on more debt than you can handle or what your income can afford to pay back. Thus your credit score paints such a picture of you that other creditors will now be hesitant to lend you any money. Until and unless you do credit repair and improve your credit score you will be unable to get a loan whether secured or unsecured at suitable rates and terms. Here are a few tips on how you can repair your credit.

1. Dispute negative items – Your credit score may have negative items that you feel can be deleted. Many a times it so happens that your creditors miss out on informing the credit bureaus about a debt you have already paid or remove the account of a late payment after you have cleared it. The credit bureaus write only those on your credit report which your creditors inform them, they don’t cross check the information. As a result a lot of wrong reporting may get updated on your credit report because of the mistake of creditors. There might also be printing mistakes in your credit report. You can dispute all these negative items and get them removed to increase your credit scores.

2. Don’t close down too many accounts – Closing down too many accounts together affects your FICO credit score. If you want to close down your accounts, then do it one by one by keeping sufficient gap in between. This is because, while calculating your credit score the ratio of your total debts to your total available credit is taken, as a result if you close down more accounts your total available credit will fall and so will your credit score.

3. Add positive information to your credit report – It is very much important that you have enough positive information on your credit report. If you have too little credit history, then also your credit score will be low. Credit history is one of the most important factors in calculating your FICO scores. This is the reason you should not close down your old accounts. If you have to, then close down your new ones. If you have too little information on your credit report then take out small debts and pay them back on time to add more positive information.

Thus you can see how you can improve your credit score by following the credit repair tips.