Debt Consolidation & Your Credit Score

I recently had a need to apply for a personal loan and I had great difficulty to prove my pay back capabilities. I wanted to take out a debt consolidation loan in order to take care of some of my high credit card balances. Turns out, in order to see if you are credit worthy the first and foremost thing the banks and financial institutions ask for is a copy of your credit report. At that point I was not aware what my credit profiled looked like. Armed with that information, prior to moving forward with the loan, I decided to so some research of my own.

The first thing I did was to get a free copy of my credit report from Annualcreditreport.com. This site will provide you with detailed report information from the three major credit bureaus: TransUnion, Equifax and Experian. The report also includes a comprehensive view of my credit and the areas that need work. Check for any discrepancies in your report. Even the smallest error could seriously dent your credit chances. If you find a mistake, immediately bring it to the credit agency's attention.

Upon receiving my credit score, I did notice an unexpected an incorrect credit card charge-off related to my previous job. Immediately after, I conducted a search on the internet to find out the best way to approach this situation and also a way to remove the unexpected credit nick that appeared on my report.

While searching the internet, I couldn’t help but noticed the large amount of sites willing to help you with you credit situation. While some of the sites seem like good legit businesses, there are a large number of them that don’t seem very hmmm, business lucrative shall we say? You need to be careful and not to fall prey of some of this unscrupulous companies that claim to provide services ranging from fixing your credit all the way to cleaning you kitchen sink.

During my research I also found an excellent site called CreditDemystified which helps clients you with free tools such as credit repair and home loan guides, and debt-consolidation workbooks; it also houses several podcasts on how to improve credit ratings. In addition, there are articles available related to ways of getting free credit reports, how to boost your credit score and also how to get a better credit report and it’s importance while getting a loan.

After contacting the 3 major credit bureaus and following the recommendation of these free tools I was able to successfully correct and remove the blemishes off my credit profile within a 3 month period.

Once past the credit-profile hurdle, I was able to contact my bank with some good news about my credit score. In turn they were able to quickly determine how much and what type of loan I was able to qualify for. I strongly recommend doing all these steps in advance prior to starting a new loan process so the lenders won’t be waiting on your credit issues for a prolonged period of time.

To learn more information about debt consolidation and credit score visit: creditdemystified.com

For a free annual credit report visit: annualcreditreport.com

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