What does everyone that constantly takes out loans want? That would the best rates and terms of course. The effective way to ensure that you do receive the best rates and terms would be to have an impressive credit score. This is the number that says a lot about you when it comes to your worthiness as to being accepted for the loan. It’s also the number that determines how much interest they’ll be charging you and the terms you’ll be agreeing with – the higher the FICO score, the better. So if you’ve any intentions of getting nothing less than the best end of the deal with your creditors, you better follow the 6 credit repair tips, which will be stated here: the first tip is to dispute any errors stated on your credit report (if any).

Taking it up with the bureau that issued the report is but of the utmost importance; writing them a letter is the best way to go about making a complaint. You also wanna inform your creditors about it, so that they can look upon you as someone a little more trustworthy, and make the necessary adjustments regarding the “details” of the loan you wish to avail. Let’s go to the 2nd credit repair tip, which is: don’t get too many credit cards, get the ones that you really need. Opening up too many accounts lowers your average account age, which in turn directly affects your FICO score, by lowering it as much as 10 points.

This brings up the 3rd tip, which is to manage your cards responsibly. Having them can in general improve your score, just as long as you don’t use it constantly for shopping sprees and other costly activities. The 3rd tip brings up the 4th credit repair tip, which is to keep your card balances low. Never max these suckers out, or you’ll be looking at a minus of somewhere near 65 points (ouch). Moving forward, the 5th pointer would be: do not close your old accounts. The act of doing so also lowers the average account age, which in turn, lowers your FICO score.

6th and last credit repair tip would be to pay your bills on time. Having any delays with your payments can affect your score negatively. Incurring default payments has even worse effects, so try to pay on time. Paying on time does come with its benefits, how? Doing so for a month can actually up your score as much as 20 points, which is a good thing (obviously). By following the tips exactly as they’re stated above, it won’t be long before you start seeing drastic or somewhere near drastic improvements, as early as 2 months – having serious doubts because of your bad credit history? Again that won’t be a problem if you play things smart, and follow the said pieces of advice.

Once you’ve finally gotten back on your feet, you’ll be (finally) able to pull out that loan and finance whatever it is you had in mind. Also, you’ll be getting better deals with the lending institutions – so start repairing your score now.