Easy Ways To Rebuild Your Credit Score
Bad credit does not have to remain bad credit forever. There are several things that you can do to fix your credit score. The problem is that most people don’t do anything about it. They just accept the fact that they have bad credit and things in life are going to become more difficult as a direct result. This does not have to happen. It is your credit, and you have the right to fix it. Personal-Loans.com has come up with these tips that will help you fix your credit.
Check your credit report
You can’t possibly try to repair your credit if you don’t even know what you are dealing with. Your credit report contains all of the same exact information that every single lender is going to be looking at. It is your job to determine the accuracy of this report. There are three credit reporting agencies that will need to contact. You will need to get a copy of your credit report from each agency because all three of them use different methods of reporting.
If there are any errors on your credit report, fix them immediately. If there are some items on your credit report that are not yours, or that you do not agree with, then you will need to dispute these items. People steel identities all the time. Checking your credit report for accuracies is just one way to determine if you have been the victim of identity theft.
Make your payment on time
If you do not make your payments on time, your credit score will drop. One of the largest contributing factors to your credit score is making your payments on time. There are easy ways to avoid making a late payment. Many credit card companies and financial institutions offer automatic bill payments, and payment reminders. Sign up to both of these services to make sure that you never miss a payment and possibly hurt your credit score.
How much money do you owe
One great way to fix your credit score is to reduce the amount of debt that you currently owe. Part of your credit score is based on the amount of debt that you have compared to your income and the total amount of credit that you have. Keeping all of your credit accounts maxed out can harm your credit score.
Don’t close your accounts
If you have paid off all of your credit accounts, don’t close them off. Lenders like to see a long history of successful payments. If you close your accounts, you may lower your credit score. It also helps to keep just a little bit of debt on each account. Some people stick with the 80/20 rule. These people keep a balance of 20% on their accounts. If you have a credit limit of $1000, then keeping a balance of $200 can actually help your credit score.
These are the easiest and most common ways to quickly improve your credit score. The best tip is to be responsible with your credit.