When you are in a credit score bind you may be looking for some immediate solutions coupled with a more long term solution. Using credit responsibly and disputing mistakes on your credit report are two of the most useful things you can do, whether your credit is poor or not.

The first thing to remember is to pay down credit cards that are near their limit. If you are using over 30 percent of the credit available to you on your card that will drag down your credit score. However, it is also important to remember not to be afraid to use your credit cards. Many people who have had credit problems in the past are leery of using credit cards again, even after they have learned better spending habits. While you may not want to use your credit card all the time you should use it periodically to keep your credit accounts active and build a positive report with credit reporting agencies. It is also critical to remember that the older the card is the better it is to use it. The older your credit history is, the better. Even if your credibility with a certain card was poor before it is good to use it because you are working to reestablish credibility with the company and with other financial institutions. Should your credit be in good condition using a specific card over a long period of time can be beneficial in case you ever miss a payment. Building goodwill within a company can do wonders for your credit report.

In addition to using credit cards responsibly you also want to keep the type of debt you have relatively diverse. Credit cards offer what is called \”revolving\” credit, meaning that as you pay your card off you can use it again. Having installment credit, provided through loans, is also important to building up your credit. Installment loans are loans such as mortgages, personal loans, auto loans, and student loans. Basically any kind of a loan you take out to purchase a specific good or service.

The second thing that is critical to repairing your credit is to actively pursue your credit report to dispute any errors. Most credit reports contain errors and it is important to remove them from your report to ensure that you are in good standing with financial institutions you may want to interact with in the future. MSN Money recommends the following things as being worth your time to follow up with:

* Late payments, charge offs, collections or other negative accounts that are not yours.

* Credit limits reported as lower than they actually are

* Accounts that are listed as \”settled\”, \”paid derogatory\”, or \”paid as charged off\” if you have paid the account in full

* Accounts listed as unpaid that were discharged in bankruptcy

Using a diverse variety of credit and disputing errors on your report are the most important things to do when repairing your credit, or continuing to keep it in good standing.

Are you looking for more information regarding Repairing Credit? Visit http://www.thecreditjourney.com today!

Are you looking for more information regarding Repairing Credit? Visit http://www.thecreditjourney.com today!

Author Bio: Are you looking for more information regarding Repairing Credit? Visit http://www.thecreditjourney.com today!

Category: Finances
Keywords: credit cards,credit report,credit score