If you are in need of getting your credit score boosted, you should try a combination of smart strategy and checking for possible errors when the score was calculated. Such mistakes occur all of the time when people’s credit records are compiled, so undertaking credit repair might involve doing a bit of research and righting the wrongs on your record.
Steps for Effective Bad Credit Repair
Here are several suggestions to fix low credit scores in the most effective way possible:
- Check your card limits — if the credit bureaus are using an incorrect limit to calculate your score, you might need to make sure that your card company has reported that latest increase in your limit ceiling. It makes a big difference in your score if you are using 20% of your limit as opposed to 70%. Verify that the credit bureau has the latest information on your limits.
- Don’t forget your old cards — an old credit history is much stronger than a young one. If you have a dormant card with little or no balance, the issuer might close the account or stop reporting your prudence to the credit bureaus. Both of those are bad news for you, so if you do have an old one gathering dust in your purse or wallet, use it once in awhile so that the low balance on it is constantly reported to the bureaus that create your score. This is an easy way to repair bad credit.
- Go easy on your cards — you know the wisdom of this; you simply haven’t followed it.
Bad credit repair does not usually happen overnight, and yours won’t either if it involves paying down large balances on your credit cards. A good goal is to get your balance down to 30% of your limit. If you can advance down to 10%, better yet. If you are way over those figures on a card, don’t use it for awhile. If you must use a card, pull out another one that is not near its limit.
- Check the details — one key to repairing poor credit might be as simple as checking your credit history. Make sure, for instance, that any account listed as “settled” or “paid charge-off” or the like are corrected if you paid on time and in full. In addition, make sure that there are no late payments, charge-offs, collections or other negative actions attributed to you that are not yours. Again, mistakes happen. Finally, if you have declared bankruptcy, make sure that all accounts listed as “unpaid” are cleared on your report.
Fixing bad credit can be as lengthy as paying down balances over a year or two, or it could be as quick as correcting significant errors to your rating. Low scores do not have to persist; take action and get whatever counseling or assistance you need to effectively repair your credit scores and give yourself a more hopeful future.