Improving A Consumer Credit Score And History–Seeking A Credit Report And Reviewing A Credit Score First

Improving a consumer’s credit score and reestablishing a more positive credit history takes time and smart financial practices on the part of the individual consumer, but it can be accomplished through a variety of methods like proper budgeting, spending, and repayment habits that could eventually help any bad credit consumer find a more positive financial ground and higher credit score. However, the initial acts of beginning the credit repair process typically involves looking at a consumer’s credit report and taking stock of their credit score, so that any mistakes may be corrected or for the simple fact that a consumer will know where they stand, in terms of their rating.

Many advisors want consumers to look at their credit history by accessing a credit report so that they can look for any errors that may be the result of a lower score in their life. Some consumers may have been the victim of identity theft, while others may have paid off a particular debt and it has simply not shown up on their credit report, but there are also other factors that may lower a consumer’s score, particularly when considering an individual’s debt to income ratio.

When a consumer has a low credit utilization ratio, meaning they have a high amount of credit available in their life but a low amount of debt, this will reflect well on a consumer’s credit score, but when it comes to looking at a consumer’s credit report to review their history and find their score, even in this area caution needs to be taken. Typically, advisors will tell consumers to take great caution when they are selecting a credit card for bad credit repair purchases, as both secured and unsecured credit cards can be helpful when it comes to repairing a bad credit score, but they can also be a hindrance if not properly researched.

However, an article on SmartMoney.com has also cautioned consumers about accessing their credit score, as there are may companies who can offer a consumer of their credit score, but there have been instances where some may charge consumers a fee and reveal to them a credit score that may not actually be their true FICO score, which would lead to a consumer either becoming confused about their score if a line of credit is attempted to be opened or, obviously, consumers have been upset at paying for a score that is part of a proprietary scoring system that has no value in the marketplace.

While it’s also said that some consumers are fine with simply getting a generalized credit score, even if it may not be their actual FICO score, as they are assuming they will be in the credit repair process for a substantial amount of time, consumers who want to find their true score must use a reputable site or resource, that may be more costly, but will offer their true score and a comprehensive credit report. While some consumers bypass their credit score altogether in the initial stages of credit repair process, as a credit history is usually the primary piece of financial information that bad credit borrowers will review before beginning the bad credit repair process, knowing what is in a consumer’s credit report, understanding their true credit score, and then simply implementing the smart financial practices that are necessary to establish a more positive credit history and higher credit score are typically the steps taken by consumers on their way to a better credit rating and, possibly, benefits and other areas of their financial life like the ability to qualify for lower interest rates.