Easy Tips To Help You Repair Your Credit
- Always pay your bills on time. The way you pay your bills accounts for almost one-third of your credit score. If you make a payment late it stays on your credit report and will affect your score for a whole 7 years. If you haven’t been paying your bills on time, start now!
- Watch the number of inquires you have on your credit report. A lot of inquires shows you are shopping for credit which lowers your credit score. Alway be aware of when your report is pulled.
- When working on repairing your credit, you should avoid closing or even lowering limits on your credit cards. Keep an eye on your overall credit score as it relates to the ratio of your used and available credit. The lower the percentage of used credit vs. available credit can give your score a big boost.
- Keep track of your credit report, especially if you have a history of credit problems. You may see unexplained negative reports pop up or new accounts opened that you cannot account for. There’s nothing worse than facing identity theft while you’re already trying to repair a damaged credit score, so try to catch it early.
- Avoid using credit cards! This is helpful when you are in debt and can’t pay back what you already owe. It is also good to avoid charging things to a credit card that you can’t immediately pay off. This will help you avoid debts that you can’t pay.
- Pay off your bills before they are due! When you make credit card and bill payments before they are due, you reduce the amount of interest you accrue while simultaneously strengthening your overall credit score. Even paying your bills a mere week early can make a drastic difference.
- Avoid the “Payday Loan” companies. You may get money advanced to you quickly this way, but you will pay dearly for it. Their interest rates are very high, which means you are just increasing, not solving, your current debt problems.
Credit repair can be a crucial subject for anyone who has suffered financial setbacks in life. It is essential to learn the ins and outs of the credit repair process, in order to avoid potential pitfalls. By using the tips and advice contained in this article, you will have a solid foundation for getting the credit outcomes that you desire.