Loads of people are struggling with low credit scores and dreadful credit reports and the present economic conditions are just making it worse. Many of the usual rules of the past are becoming obsolete and scores of people may not know just where to turn or what to do about credit problems.

Only some people realize just what a credit score is composed of. For instance it is not common knowledge that your credit score can be reduced by inquiries on your account and by your debt to credit ratio. The reality is that you are considered to be riskier if it looks as if you are shopping for credit so inquiries reduce your score and if you have credit and use it you are also considered a higher risk. In order to have a high credit score you need to decrease your debt to less than about 15 to 35% of the credit you have available and no more.

Under the FCRA or the Fair Credit Reporting Act you do have the right to obtain one free copy each year of your own credit report from each of the major credit reporting agencies. It is wise to get this report each year so you can track your report and make sure that it is looks as positive as possible.

The fact is that it is estimated that as many as 75% or more of credit reports contain mistakes and inaccuracies. These mistakes and inaccuracies can cause you great problems if they arise when you are trying to get credit. If you get your report each year and make sure that it is correct and accurate you should be able to avoid many of these problems.

As per the FCRA you also have the right to dispute mistakes or inaccuracies on your credit report. After the credit bureaus receive your dispute they have 30 to 45 days to provide evidence that what they are reporting is truthful and accurate. It has been estimated that as many as 45% of the disputes received are not verified within the time frame. If the reporting is not verified within the time frame it must be deleted from the report. As a consumer you can use that fact to your advantage is you take the time to issue the dispute.

Besides making sure that your credit report is clear of mistakes and inaccuracies every year there are also other things that you can do to improve your credit score. Debt to credit ratio is very important so you can either get your credit limits increased or pay down your debt so that your debt does not exceed 15 to 35% of your available credit. What’s more you should avoid all inquiries into your report. Do not shop for credit unless you are sure that you will get it and then have the creditor combine the inquiry into the loan so that you do not show any inquiries.

You can do the labor necessary to repair your credit on your own or you can use a professional that specializes in credit repair. Both way can be quite effective but if you decide to take on a professional just make sure that it is a trustworthy company with a good track record. Unfortunately there are some scammers out there so do your homework and find a reliable company that has been around long-term.

Credit repair is possible. It is not a fairy tale. The FCRA was passed for that very purpose, to allow consumer to defend themselves against inaccuracies and discrepancies on their credit reports. You can take advantage of that fact and repair your credit so that it looks as good as possible.