Are you wondering how to fix your credit score and erase any bad credit history forever.

If your are reading this article you may be in the same position as i was in a number of years ago. I was was broke and my credit was destroyed.

I was unable to get any credit cards a car loan or a mortgage, so i know how you feel.

I then found a tip that changed my financial picture forever and i am going to share that tip with you.

First let me show you the importance of erasing any bad credit history and i will show you how to fix your credit score with one amazing tip.

Let's say that you want to take out an automobile loan for $20,000 and you have bad credit history. You could get a loan with an interest rate of 10% over a term of five years.

This would mean that you repay the principal ($20,000) plus total interest of about $5,496.00. Now let's say you have great credit and you get an interest free loan for the same length of time.

This means you only pay the principal back and you pay no interest. Here your bad credit history will cost you a total of $5,496.00

Now let's take a look at a $200,000 mortgage taken out over thirty years. Now let's say that because of your bad credit history you end up paying an interest rate of 8%.

This means that over 30 years you will pay a total of about $328,310.49. Now let's say you have good credit and you only pay 6% (2% less than bad
credit), you will end up paying about $231,676.38 for the mortgage.

So you can see the difference between good and bad credit, the savings can be as much as $102,430.11. This picture shows how important it is to know how to fix your credit score.

So if you want to know how to fix your credit score, here is the tip:

the fair credit reporting act

The Fair Credit Reporting Act (F.C.R.A), is a federal law that came into effect May 25, 1970, and is intended to protect people like you and me from being harmed by the groups that monitor credit reporting, better known as the credit bureaus and was implemented to show you how to fix your credit score.

The law was designed to remove any credit bureau report details that are not completely accurate and verifiable. The three major credit bureaus (Trans Union, Equifax and Experian) contain credit information that only achieves 80 percent accuracy and not the 100 percent accuracy which the law requires.

The first step is to obtain a copy of your credit report. You can request one free credit report yearly, this is your right and it will help you understand how to fix your credit score.

The next step is to look your credit report over very carefully looking for ANY inaccuracy. If you find any information that is not 100% you need to write a letter to the bureau stating the inaccuracy and asking the credit bureau to remove the blemished report from your file.

Be prepared to back up your claims with the neccessary paperwork.

WARNING: Do not take this tip lightly, as you may be shocked to see what a difference this makes on your credit report.

Make sure you check out the resource box below for more information on how to fix your credit score and change your bad credit history.

About the Author: at this time we are not even sure if your credit score can be increased find out for yourself and receive a free copy of “6 free credit tips” you can also get a free copy of our report on “6 credit repair myths” your future is determined by the decisions and actions you take today. So let's get started

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