Top 5 Simple Tips for Credit Repair
If you have a credit score in negative then you know the real pain because of it. No one is going to give you credit, you can’t buy anything from your credit card. Because they first check your credit score.
So, the point is if you have a credit score is negative, then how the heck you can repair it.
Well, easy answer first. If you don’t want to do any work on your own or have little to less knowledge, you can hire a good credit repair company. And they’ll handle the rest of work.
But if you have some knowledge about it and want to fix/repair your credit on your own, then you can also do it by yourself.
And in this post, you’ll learn 5 best tips for credit repair, that you can use from right now. So, let’s get started:
1. Reduce the amount of debt you owe.
First thing first, you have to remove the amount of debt you owe. Well, it’s easy to say but hard to do, but if you know where you’re spending excessive expenditures. Go online and look up for accounts which are using your credit card and what interest rate are they charging you. Make a payment plan and prioritize those accounts first which are charging you most interest rate. In this way, you’ll able to properly manage your owed amount of debt.
This may not directly be going to improve your credit score, but this is the first thing you need to do.
2. Make your credit reports accurate.
Each individual has credit reports from three different bureaus: Experian, Equifax, and TransUnion. Credits reports often do have some errors in them.
It literally takes some moments to check your credit reports, so make sure you check it from every three bureaus. Your credit score is totally based on your credit reports. So, make sure your credit reports are totally accurate.
You can view your credit reports from AnualCreditReport.com This site is run by Government i.e. by these major three bureaus.
When you have your credit report in your hand, you should check:
-Is your personal information correct?
-Are there any accounts which you don’t recognize?
-Are there all accounts accurate?
If you find any kind of error in your credit report, you should have to dispute it separately in each bureau, this is how it works.
3. Create a plan.
“Nothing ever happens without a great plan.” And believe me, you seriously need a proper plan to improve your credit score.
If you find something irrelevant or something you don’t recognize in your credit reports, then you should dispute those errors. You have to dispute your errors from every three bureaus separately.
You should pay down your debt instead of moving it around. And the most important thing, you shouldn’t trap in some quickly improve your credit score like schemes.
You should have to pay the amount of debt you owe and one more thing, do not try to apply for a new credit card or for a loan, just because you need to increase your credit availability score.
4. Setup payment reminders.
Making your payments on time is one of the biggest contributing factors in improving your credit score. You can set reminders for payments for different accounts so that all payments are made in time.
Some banks offer payment reminders through their online banking services which send you a reminder on your email or send you a text in your phone. It can be very useful for you to make your payments on time.
You can also set up the automatic payments for different accounts with your credit card. What it does is it automatically debit the amount of money that you need to pay from your bank account at the right time. Whether opting for debit or credit card payments, maintaining oversight of processing fees is crucial, and a card machine comparison proves invaluable for this purpose.
It can help you to make your payments on time, but this tip is not effective when it comes to money management. Because your money will be debited from your bank account automatically.
So, if it seems good to you, then go for it. Otherwise, just make some reminders for payments.
5. Pay off high-interest credit accounts first.
When it comes down to paying off the credit accounts, you should always go first with those who have the highest interest, and then prioritize those by the age of the accounts. This little tip will help you to improve your credit score and the average length of the credit. This little tip will also help you to avoid paying high-interest accounts.
Then put the money not spent on hat payment in the next account in your list.
This tip will be going to help you a lot.
Conclusion of the Top 5 Tips for Credit Repair:
Yes, you can improve your credit score by using some of the tips I told you above. But you’ve to work and you need to have some knowledge about all these things.
Keep it in mind, whenever you find an error or some unrecognized account in your credit report (which you can access by AnualCreditReport.com) you’ve to dispute it in all the three major bureaus (Experian, Equifax, and TransUnion) Because this is how it works. The errors need to be disputed from all three bureaus.
And when you are looking up for some errors in your credit report, you should check all three bureaus report separately, because there are some errors which are showing in one bureau and not in other. So, it’s better to cross check each bureau report separately.
And one more important thing is when you’re going to create a plan for increasing your credit score or just for paying off your debts on time. You should always pay those accounts first, which have the highest interest rate, and then prioritize those by ‘new’ accounts.
Because as I said you in the last point, this helps to increase the average length of credit and directly helps to increase credit score.
Hope you find these tips helpful and these help you to increase your credit score.