How to Repair Your Credit Score
Repairing your credit score may improve your creditworthiness to future lenders. While it is possible to improve your credit score, keep in mind the process takes time so you’ll have to be patient. Taking necessary steps now to improve your credit score may help you save money on future investments.
Contact credit bureaus to obtain your credit report for review. You’ll want to review report data to make sure information on file is correct. Since creditor don’t have to report to all credit bureaus, it is best to obtain a copy from each bureau (Experian, Equifax and Transunion).
Take time to review and examine information on your credit report. If mistakes are found, take steps to correct them. In some cases, mistakes reported have cost consumers more money or likely to be denied credit or employment. Errors may include wrong address, typing errors or inaccuracies on payments reported. Certain activity such as charge-offs or bankruptcies will be on your report for several years.
If changes need to be made, dispute them and document them as they as are handled. You’ll have an opportunity to dispute claims on your report that you feel are incorrect or untrue. Since it pays to have a good credit report, you owe it to yourself to make necessary corrections. Credit bureaus may remove certain inaccuracies upon request and may need verification from the creditor in question.
Develop solutions to assist in resolving debt. This can include a variety of actions from drawing up a new budget or creating a spending plan to help you save money and reduce debt. Contact lenders and ask about lowering payments if feel you may default or if your financial situation has changed. Improving your credit score also includes dealing with debt collectors and collection agencies. Many tend to ignore collection activity from debt collectors but doing this may hurt your score. If you have available credit on credit cards, it helps to keep it under 50 percent of the total credit amount.
If you are looking to close accounts, do it slowly over several months. On a credit report, is should read as “closed by consumer” for clarification.
Look for ways to add stability and positive information to your credit report. If you filed bankruptcy in the past, you may look to obtain credit help you rebuild your worthiness. Since all creditors may not report to credit bureaus, you may want to contact them as ask if they would report your history. A secured credit card or even opening a savings accounts is also a positive step but limit how often you apply for a credit account.