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Repair Credit With These 4 Amazingly Simple Steps
A good credit score can make the difference in whether you can get that new car or not.
It can determine how high your monthly payments are and which credit cards you’re allowed to get.
It’s very important, but it can seem impossible to get ahold of if you are experiencing bad credit. While it may take time to rebuild your credit score, it’s entirely possible, and you can do it too.
Would you like to learn some secrets? Keep reading below to discover how you can repair your credit.
1. Look Over Your Credit Reports
One of the most important things you can do when learning how to repair credit on your own is to review your credit reports weekly.
No, checking your credit will not hurt your credit, as was once the case. There are free websites that you can use to check your credit, such as Credit Karma.
Review your current score and which factors are hurting your credit the most. Look at any derogatory marks, credit card utilization, and on-time payments.
Once you get a feel for what your credit score is and means, you can begin to rebuild it.
2. Dispute Errors
When troubleshooting your credit, you should ensure there are no errors on your credit score.
Common errors you should look out for on your credit report include:
- Incorrect personal information
- Missing accounts
- Accounts that aren’t yours
- Incorrect public records
- Fraudulent activity
- Incorrect Inquiries
If you do find an error, double-check it with other credit bureaus to see if the error was reported more than once.
You can dispute these errors, as credit bureaus are legally obligated to solve mistakes.
3. Pay Past-Due Accounts
The key to credit repair is keeping your payments on time, so paying off any past-due amounts as soon as possible is essential.
Late payments that are less than 30 days are not reported to the credit bureaus, so you have a cushion to get a handle on it before it hurts your credit.
If it does get past 30 days, that’s okay; just keep trying to pay it off as soon as possible. The later it gets, the worse it is for your credit.
4. Increase Credit Limits
If you have a credit card and have made responsible on-time payments for a few months, you may be able to request a credit line increase.
This is one of the best DIY credit repair methods.
The lender will look over your account and, if you’re approved, your credit card will have either a few hundred or more thousand dollars on it.
This will help your credit score by decreasing your credit utilization ratio. You want to keep your credit utilization ideally under 30%, which you can do by increasing your credit and paying off your balances each month.
Ready to Repair Your Credit?
In order to repair your credit, it will take hard work and a reasonable amount of time.
But, if you stick to it and make responsible decisions, you will see your credit increasing every month, and soon you will be in good standing to take hold of your financial life.
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