How Do I Repair My Credit File

If you're being turned down for credit left and right by every car dealership, mortgage broker, credit card company, landlord, or you're not even able to refinance your own house, that is a strong indication that you have some bad negative items lurking in your credit report that are scaring away potential lenders.

You have two choices: You can cut your losses and either walk away and decide to wait it out the next seven years until those negative items fall off your credit report, or you can take control over the situation today and learn all you can about how the FICO scores work.

But before we jump right in and answer the question, “How Do I Repair My Credit File”, let us cover the basics of what makes up a FICO score.

The FICO score is a complex formula used to analyze the information contained in the big three credit reporting agencies files to arrive at a number or score that evaluates a persons’ creditworthiness.

Basically, the FICO score is a measure of risk you represent for lenders, compared with other consumers.

This is what makes up the no longer secret credit formula used by creditors to grant you credit or not.

35% of your FICO score contains your record of on-time payments of loans/credit.
30% of your FICO score is about the amount/type of outstanding debt you have.
15% of your FICO score is the length of your credit history.
10% of your FICO score is the mix of your various credit accounts.
10% of your FICO score is the number/types of accounts that you have recently opened.

I have given you a lot of things to think about when it comes to How Do I Repair My Credit File. Some of this information will work better for one person's credit report than another. It all depends on your unique situation. What I have presented are some general tips for improving your credit files by first knowing what it contains which will lead you to better interest rates and loan programs.