There’s a chill in the air, music everywhere, and a busyness about your local strip mall that you won’t see any other time of year; the holiday season is officially underway. As Thanksgiving dinner becomes a distant memory and Christmas lights brighten everyone’s hearts, you may not be doing much thinking about the year to come. However, getting an early jump on your New Year’s Resolutions can make for an efficient transition into 2018. Do you plan to lose weight, or go back to school? Maybe you want to be more organized, or start a new hobby? Whatever is on your list, you probably never thought that credit restoration could be an attainable goal in 2018. Believe it or not, you can restore credit with these three simple strategies.
Since you’re taking the time to read this article, it’s likely that you’re ready to put in the hard work and precious time required for quality credit restoration. However, no amount of either will do a bit of good if incorrect information litters your credit report! Thanks to the Fair Credit Reporting Act, you are eligible to receive three credit reports per year: one from each of the major nationwide credit reporting companies. Although they are free, they won’t just show up on your doorstep at random; you must contact each company – TransUnion, Experian, and Equifax- on your own. You can order all of the reports at once if you’d like, but your best bet is to review one report every four months for errors. If you find any, contact the company right away to dispute them!
Although many companies do still mail out paper statements and those pre-stamped envelopes for paying your bills the old-fashioned way, there’s no need to use them! The care and planning necessary to pay debts by check or money order are admirable. However, sometimes doing so leads to late charges from post carrier delays or even forgetting to put the envelopes in the mailbox in time. Why bother with such hassle when you can make sure that your bills are paid on time, every time? Restore credit with minimal effort by visiting your card carrier’s website to set up automatic billing and digital billing statements. There is even an option to always pay a specific dollar amount above the minimum payment, which is ideal when credit restoration is the goal.
Reduce Utilization Ratios
Also known as your credit utilization rate, the ratio between the amount of credit card debt you have and the total credit you have available is the second most important factor reporting agencies look at when creating your credit score. From the lender’s perspective, if you aren’t maxing out your cards, the chances are that you’re a relatively responsible spender. Thus, to effectively restore credit, it’s vital to reduce your credit utilization rate as much as possible. According to Experian, using no more than 30% of your available credit is best for reaching credit restoration goals. Paying down your bills and using your cards less is the best way to accomplish this. However, getting an increase in your credit limit can also help-instantly!
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