You’re looking to take out a loan for a car, or you found your dream home and need financing, but you are denied your funding due to your credit score being low. There are ways to fix your credit score over the span of a few months, and this article is going to discuss the top ten ways for credit repair.
For Starters you are going to want to get a recent copy of your credit report. This step is pretty simple. You can request an annual copy of your credit report online. Once you get the reports, check for anything odd or errors. You won’t know what to fix if you have no idea what is on your credit report, so request a copy to see where you sit with repairs. You can request your free credit reports here: https://www.annualcreditreport.com
Report Any Errors: As advanced as credit reporting is today, mistakes still happen. It is reported that over 70 percent of credit reports contain errors, and this will drop your credit score. You should look the reports over carefully and if you do find mistakes, report them to the credit agencies and have them removed. This could bring your score up quite a few points, and it costs you nothing but time to do.
Stay Current Your Payments: Pay any and all of your bills on time, every month. A history of current and on-time payments will boost your credit score. It will also show lenders that you can be trusted to pay back any money you borrow in the form of loans or mortgages.
Catch Up on Any Missed Payments: A payment history impacts a good portion of your credit score, so catch up on payments as soon as you can. If you can’t pay them all right away, try to work out payment plans with the creditors or call and ask a non-profit credit counseling business to do it for you.
Pay Down as Much of Your Credit Card Balance as Possible: You don’t want high revolving balances on your credit cards because it’s easier to miss a payment that way. You should pay down as much of your credit card debt as possible, and keep the balance below 20 percent of you maximum credit amount at all times.
Open a Secured Line of Credit: See if your bank will open a secured line of credit for you. This is a card where you put a deposit down, and that’s how much money you can spend on your card. Make sure to pay your balance off on time every month, and after a few months ask you bank if they’ll upgrade you to an unsecured card. A lot of banks will upgrade you after ten to twelve on-time payments. This will start building your score.
Do Not Open a lot of New Accounts: The credit companies look at the length of your credit history and average it against new accounts, so opening a lot of new accounts will lower your score significantly. It also makes you look like a higher risk to borrow too.
Keep Your Current Accounts Open: As it was mentioned above; the credit companies average your oldest accounts against your new ones to give you part of your credit score. As long as the account is in good standing, keep it open as it will help raise your credit score when they average it out.
Contact Consumer Credit Counseling: These agencies are designed to help people fix their credit, and keep it in good standing. They offer money management tips, budget calculators, homeowner resources, and may even be able to contact debt companies for you. You can find out more here: https://www.nfcc.org/
Use Your Calendar: Every time there is a credit inquiry on your report; it will cause it to drop points, and it lasts a year. The credit companies will usually consider every inquiry that is done in a month and one credit shopping period and ignores them. Monitor your inquiries with a calendar to keep track of them.