When it comes to your credit, there are so many questions you could ask yourself:
Do you have trouble getting loans?
Are you looking to purchase a home for your family?
Would you like to drive a newer model car?
Are you interested in financing appliances or other material investments?
Do you find it essential to ensure expensive belongings, like your vehicle or house?
Do you want to open a credit card for use in emergencies but find it hard to get approved?
Perhaps you need a new job; do you want to show a good credit score to a future employer?
Credit Building Hacks
4 Foolproof Ways to Repair Your Credit Score
If you have bad credit and answered yes to any of those questions, then it’s time for a credit fix.
Having a good credit score is essential when it comes to winning the favor of any lender type and repairing your credit score can be a time consuming, confusing process. Whether you’re going through a credit repair company or striking out to repair your score on your own, these credit building hacks can help make the process a little easier.
Tip: Read Your Report
If you don’t know what influences your score to begin with, it’s difficult to know where to start or what to change to improve it. Furthermore, reviewing all your credit reports in detail is necessary to pick up on errors that might be needlessly holding you back from the financial future of your dreams. You don’t need a credit repair company to access your credit score or report, either. US law entitles you to a free yearly credit report from each of the three nationwide credit bureaus. While you can do everything yourself, professional help can make it easier to understand what the data means and how to use it.
Credit Reporting and What it Means to You
Whether you’re working with a credit repair company or working on your credit fix independently, your credit report can be requested through the credit bureaus all at once, if you wish. The benefit of this is that you would be able to catch any glaring errors on any of them right from the start, however, if you are more focused on monitoring your credit then it would be wise to stagger them out over the year. Staggering your credit reports can help keep you aware of how lenders may see you. Staying “credit alert” in this way can protect you from embarrassing rejections and major disappointments when seeking a new loan, a new lease, or a new career.
Between the periods of eligibility for your full reports, there are still steps to take to monitor your financial health. For example, it’s always a wise decision to monitor your FICO score. Some credit card companies even offer a free view of your score on demand, just for opening an account with them. If you have one or more of these credit cards, make it a habit to check on your score each time you log in for your statement or bill payment. By doing this, you’ll notice any errors immediately and be able to investigate any issues should the score start to decline.
With only three main credit bureaus maintaining the financial data on an entire nation’s worth of consumers, it’s inevitable that some errors will occur. If you happen to find an error on your credit report, don’t worry. Send a detailed dispute of the error in writing to both the information provider and the credit reporting company. They will be required to address your concerns within thirty days. You may even want to include an annotated copy of your report with the exact errors highlighted or circled to streamline the process. Even if the resulting investigation does not resolve your dispute, you can request that your future reports include a statement to potential lenders regarding the issue.
If you feel overwhelmed dealing with the credit reporting company or information provider on your own, you can contact a credit score repair company to communicate with them on your behalf.
Credit score repair is a complex process. Sometimes, doing something you think will help- such as closing down credit card accounts or applying for a bunch of new cards in an attempt to build your credit- can actually do more harm than good. Fortunately, many of the hacks you can take toward credit score rehabilitation are relatively easy and foolproof.
#1: Be Punctual:
The easiest credit fix is to stop being late on your payments. It sounds easier than it is, we know, but it’s true. This includes your rent, credit cards, utilities, and other reoccurring bills. Paying your debts promptly tells debtors that you are a responsible borrower that takes financial obligations seriously. Everyone forgets about a due date or finds themselves in a pinch on occasion, but frequently paying your bills late is something some lenders find even less appealing than other negative factors like having a large amount of debt or a short credit history.
#2: Exceed Minimums, Not Maximums
Even the most amateur credit repair company employees will tell you that your debt to credit limit ratio is a major factor in the development of your credit score. Exceeding the maximum credit limit on any account is something you’ll want to avoid at all costs. In fact, keeping the utilization of your revolving accounts (such as credit cards) below 30% is sound advice if you’re seeking a quick credit fix.
Meeting your minimum payments is a must not just for credit score repair, but also to prevent your score from plummeting. In fact, paying even just ten dollars more than the minimum payment a month looks very attractive to lenders.
#3: Keep Old Accounts Open
One thing many credit scoring companies look for when formulating your results is how long your accounts have existed. Having just a few long-term accounts will lean in your favor. Having numerous new credit cards will drag your score down, even though you may have needed good credit to get them.
#4: Be Proactive
The number one way to doom your credit score repair journey is to take no action at all. Don’t be intimidated by “money talk” or let fear of the unknown stop your credit fix from even getting started. Seek help from a credit repair company if you’re feeling overwhelmed, and begin improving your financial future today with Your Personal Finance Tips.