Credit standing of the individual is an integral part of his or her financial life.
Just as character of the individual is considered more important than wealth that he or she posses, in the same way, credit standing that individual possesses is considered more important than assets and income that individual has.
If you earn lots of money but do not have the habit of repaying your debts on time, it is obvious that no lender will be interested in dealing with you.
If you have made mistakes in past and if you want to repair credit standing today, you will have to follow instructions given below to improve your FICO score.
The first step that you should take is understands various components that determine your credit standing.
Your credit history is a very important factor.
However, it is impossible to change your credit history until and unless there are erroneous descriptions in the same.
Hence, you should focus on present and try to improve current aspects so that you enjoy a good credit standing in future.
If you want to improve and repair credit standing, you will have to take remedial action as far as unsecured debts are concerned.
It is impossible to bring your secured debts down to zero in a few months.
When you have taken a loan for twenty years and only five years have passed, it is obvious that you will have to spend at least ten more years trying to repay the loan in full.
You can reduce tenure of loan by five years but anything more than that is impractical and even dangerous.
Hence, it is advisable to focus on unsecured debts.
Bring down amount of unsecured debt and your FICO credit score will automatically improve.
A person who is perinearely in debt is going to find it very difficult to repair credit standing.
Secondly, you should not make the mistake of running away from debt.
That is only going to make it difficult to improve your score.
What you should do is incur debt and repay it on a regular basis.
This is a smart move because this solution will help you manage your finances better.
A person who has capacity of incurring debt and repaying it promptly is always valued high by lenders.
If you want to repair credit standing, you will have to convince lenders that not only can you avoid excessive debt but you can also manages regular debt and offer regular income to lenders.