Repair Your Credit And Increase Your Credit Score
Repairing ones credit can be an easy job provided one knows what to do. For someone who doesn't have the
knowledge, credit can be a confusing and difficult subject to deal with. However, it is not hard to learn what one
needs to do by reading this article and studying the tips within.
An important tip to consider when working to repair your credit is to consider paying down your cards that are
nearest to their limits first. This is important because having credit cards near their maximum limit is toxic for
your credit score. Consider spreading the debt among your other cards or focusing on this card first. This method
may not work for everyone.
TIP! After filing bankruptcy you may look for help with
credit repair, but if you have a company call YOU, be wary! Some scam companies will troll bankruptcy
filings, which are public record, and call unsuspecting people and rip them off. YOU should contact any
credit repair company you wish to work with AFTER doing your research.
Report good information to credit repot agencies to help increase your score. If you have a job that is not
listed, have it added to show job stability and increased income. If you owe taxes and have paid them on time, have
that information added as well, to show that you do have the ability to pay debts.
Check your credit report carefully before accepting discrepancies as valid. There are times when issues could
occur when a mistake is made or an error in your file is made. These can be handled easily through a credit
dispute, which takes a little time but removes the discrepancy if proven invalid. You want to make sure that these
errors or mistakes don't exist so you aren't paying for something that isn't right.
On a yearly basis, review your credit report for items that could mean your identity has been stolen. If you see
inquiries that you did not authorize or accounts opened that you do not recall, start taking action immediately to
secure your identity and put a hold on your credit.
TIP! For a quick boost to your FICO score, start paying
down your credit cards. Your FICO score is heavily influenced by how much available credit you
It may be a good idea to include an old-fashioned bank loan in your credit repair activities. Banks may be
willing to give even those with bad credit a loan. Paying back a small loan on time will really help your credit
history. Be aware, however, that you won't get the best terms with poor credit. You may have to suffer a bad
interest rate or put up collateral to secure the loan.
If your credit report dispute is rejected by a credit bureau but you know that it's accurate, resubmit your
dispute letter. Include even more information if possible, from receipts to bank statements, so that you can fully
support your claim. Keep fighting until they do the right thing and fix your report!
Do not use your credit cards. Instead use cash for all your purchases. If you must use your credit card, pay it
back in full. To avoid having a credit card payment at all, just don't use it. If you don't have the cash for it
then you don't need it.
TIP! If you spot an error on your credit report, you should
contact each credit bureau to correct the error. Contacting one bureau does not guarantee that the
correction will be made at the other bureaus.
Don't use all of the credit available to you. Credit agencies use a debt to available credit ratio when
calculating FICO scores. When debt is at a high percentage, the credit score is lowered. Keeping available credit
on every account that you have will not only help your score, but will also give you some options should there be a
Don't close unused credit cards to improve your credit. You should try to keep your accounts open for as long as
possible, even if they don't have a balance. The longer your credit history goes back, the better it will look on
your credit. Closing older accounts can actually make your credit score lower.
Don't be tempted to include a statement defending negative reports on your credit. While it can be hard to just
let the negative reports go, the statement will not be considered when lenders look at your credit history. If
anything, it will just hurt you, as it will draw attention to the negative event.
TIP! Instead of trying to settle your credit problems on
your own, get yourself consumer credit counseling. They can help you get your credit back on track by
giving you valuable advice.
In a worst case scenario, you should always pay your accounts in good standing first. If you do not have the
money to make all your payments on time, then pay your current accounts first to avoid additional bad checks on
your credit report. Also, be proactive about contacting the companies you cannot pay on time. They may be able to
work out a payment plan or to arrange an alternate payment date that can help you to avoid further credit
Buy a car and make your monthly payments on time to improve your credit score. Your credit score will be checked
when you apply for a car loan. But if you build up a good score with a cheap car, a few years later you could
easily apply for a new loan and get a better car.
To keep your credit in good standing and to protect your credit score, you need to be in control of your credit
report. Check periodically for discrepancies and mistakes. It can even happen that your credit information gets
mixed up with someone else's or that someone has targeted you for identity theft.
TIP! Increase your chances for approval by applying for
credit with smaller local companies. In most cases, no one actually lays eyes on your credit report when
you are applying with a national chain.
If you're considering using a credit repair company, think again. The Federal Trade Commission recommends
avoiding these companies, as many of them make promises on which they won't deliver -- and it costs money to use
them, too. Repairing your credit on your own will take time, but it's also less expensive and more likely to be
successful. Repairing your credit on your own will also help you understand and use your own finances wisely.
An important tip to consider when working to repair your credit is the added incentive that you will not have to
pay a large security deposit when starting up utilities at a new residence. This will help to save your immediate
out of pocket costs and give you more money to work off your debt.
Paying your bills on time is a crucial part of your credit score. If you will set up payment reminders it will
help you to not forget to make your payment. You can set up reminders in many ways. Set them up with your online
banking portal, to be sent as emails to yourself, or many debtors will text you a payment reminder.
TIP! Keep your first account open. Whatever credit account
you have had open the longest, is the best one to keep on your report.
If you have already missed some payments, make sure you get caught up on them and stay caught up. The longer you
have consecutive on time payments, the better your credit will become. Credit companies will look at your most
current payment information first, before looking at older information.
Do not file for bankruptcy. This stays on your credit report for 10 years. It may sound like a good idea at the
time, but avoid doing this at all costs. Even though you can clear out all of your debt at once, this will remain
on your credit report for awhile.
Pay your credit cards every month by setting up an automatic payment. This will make sure your payments are made
on time every month. You will not forget to make a payment this way and you can avoid late charges or other fees
for having a late or missed payment.
Repairing credit may leave some in confusion feeling very frustrated and even angry. However, learning what to
do and taking the initiative to follow through and do exactly what must be done can fill one will relief. Repairing
credit will make one feel much more relaxed about their lives.