Repairing your credit to qualify for a loan has numerous advantages, the most obvious one being that you will be able to get a lower interest rate and better terms on the loan.
This means a lower monthly payment on whatever it is that you are looking to buy.
There are different strategies to repair your credit to qualify for a loan, and the route you take depends a lot on how much time you have to work on your credit reports.
If you have little time to get your credit repair done you want to focus on improving credit that you already have.
You want to use methods such as lowering your debt ratio.
This simply means reducing the amount of credit you have on revolving accounts such as credit cards.
For example, if all your credit cards have a total limit of $2000 and you have spent $1800 of your available credit, you want to bring that down to below 50%, which would come to less than $1500.
This strategy helps because it is one of the factors that is considered in the credit score formula and it can work wonders on your credit report.
On the other hand if you do not have any good accounts, you need some new credit! The fastest way to do this is to have someone cosign for you on his or her already established credit card.
The account will show up on your credit report once you are added as a new account.
Keep in mind that it will show on one of the three main credit bureaus files.