Credit scores ratings always starts with Credit repair. It is something that takes time and patience to accomplish, especially if the damage was made recently. There are many ways to increase your credit score and boost your ability to apply for future financial aid, but these can be tedious and time consuming.

To start the repair, you will need a copy of the reports from all three consumer reporting agencies:TransUnion, Equifax, and Experian. Compare all the reports and make sure that all the information they contain are accurate. Some creditors only report to one agency, which can cause discrepancies. Also, there have been instances where closed accounts are still being reported open and paid off debts are still showing as unpaid. Make sure to correct these errors right away by calling the consumer reporting agencies and explaining the situation. You may also need to contact the creditors who made the report to send an update to clear up the inaccuracies.

The next step is to get rid of too much debt. Make sure to get rid of all most of your unsecured debt either by paying it off or consolidating it. Too much debt can be seen as a negative and is a factor when it comes to your credit file . Close out all the extra charge cards and store cards and only keep two – ideally a Visa and a Mastercard, to make sure that you will have access to funds when you need it. Keep the accounts that have been open the longest because this will have a positive impact on your credit score. Donít close out all the other accounts at the same time. Try to close only one or two accounts every six months to give your score time to adjust.

The way to confirm the repair is to ensure that you do not have late payments or incur an overdraft on any of your debts. Financial institutions report these to the consumer reporting agencies , who in turn put it in your credit report. There is a 30 day, 60 day, and 90 day category on missed payments, and having one of this can cause your score to take a very large drop .

Finally, make sure that your credit report information is being accurately reported. Your FICO score is partly based on the amount of debt you have versus the amount of credit you have available. Some charge cards report your highest balance instead of your limit, so if the highest balance youíve incurred is $400 out of a $500 charge card and you charge $450 the next month, it may look like you went over the limit. Make sure never to charge more than 30 percent of your limit to show that you are not spending more than you need to .

Credit report repair is a long term process, especially since some of the negative feedback will take 7 to 10 years to fall off. One thing that you need to remember is not to borrow more than you can afford to pay back and to make sure that your accounts are all up to date. After all, even though the repair can take years, it will still benefit you in the long run.