Credit Repair Guide: A Step-By-Step Plan To Repair Your Credit Score, Learn How To Repair, Fix & Improve Your Credit Score Quickly

This book contains proven steps and strategies on how to preserve a good credit score or recover from getting a bad one. This not only lays down steps on how to get better credit scores, but explains how the system used by most credit rating companies work as well. In addition, it also tells you how to make loans work for you, and how to take better advantage of a good credit score.

Here Is A Preview Of What You'll Learn...

What Is Credit?
What Is A Good Credit Score?
Why Is Credit Important?
Repairing A Credit Score
How Errors Get Into A Report
Much, much more!

What Is Credit?

The word credit comes from the Latin word creditus, which means belief, trust, confidence, or the quality of being credible and trustworthy. In business lingo, it simply means trust in one’s integrity in money matters and one’s ability to make payments when these are due. Credit, as an accounting term, means entry in the credit or the right-hand side of a ledger. Debit, on the other hand,is an entry made on the left-hand side of a ledger, giving rise to an increase in an asset account or a decrease in a liability or net worth account.

Therefore, when a bank lends you money, it enters in its books of accounts, under your name, the amount involved on the credit side. At the same time, a debit entry of the same amount is made in the loans receivable account against your name. The amount under the loans receivable account will reducedevery time you pay back the bank in liquidation of the debt. Simply put, your account is debited for amounts received by the bank and credited for amounts given the borrower.

The individual accounts of borrowers are maintained by the bank in what are called subsidiary ledgers. There are as many subsidiary ledgers as there are borrowers. The monthly bank statements of borrowers are basically printouts of these ledgers.

How is credit established?

Good credit is often associated with a famous name. So one may say that genealogy or pedigree play a part in one’s credit. Of course, we cannot deny the weight that the Rockefellers and Fordsof the world do carry. But as will be pointed out later, if indeed names influence action towards granting of credit, they do not necessarily play a big part in business credit.

This book concentrates on credit that is established for financial transactions, specifically the use of financial means to acquire financial assets without the immediate use of one’s own money.

Presently, there are a number of companies that document the credit status of people and entities, notably FICO (Fair Isaac Corporation), Equifax, Experia and Transunion. These rating companies use various ways in calculating credit scores. Loan companies consult these scoresbefore lending their clients money, and the higher the score a client gets, the better his chances of getting credit. Think of this score as like the ones they gave us when we were still in school and being rated for stuff like tests, attendance and recitation.

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