5 Simple Self -Credit Repair Tips and Tricks
If you’re recovering from a foreclosure or bankruptcy or just don’t have that great of a credit score then the good news is that there are many things that you can do to increase your score so that you can get back on track financially. Although some of these strategies are intuitive, others many not come to mind so easily. Here are five of the best tips to increase your credit score all on your own.
Don’t Be Afraid to Dispute What’s On Your Credit Report
Many people want to avoid any sort of conflict at all costs, while others believe that there’s no point in arguing any of the negative notes that are placed on their credit reports, as they believe them to be final. However, this is far from the case. If there is an error on your credit report caused by an inaccurate accusation then you shouldn’t hesitate to dispute it. On top of this, you may even reap the benefits of disputing a claim that is accurate, but you have some leeway in arguing for its removal. Be aware that the older the records are, the better chance you have of arguing them off of your record due to the fact that many records go missing after a substantial period of time due to disorganization or simply older bookkeeping methods. There’s no harm in trying.
Build Up Your Credit History
It’s critical that you have as long of a credit history as possible, and so it’s best to avoid cancelling any of your old credit cards merely because you don’t use them anymore and they’re older. Instead, try to keep all of your credit card accounts open and use them every now and again so that they can help you increase your credit score. Just make sure that you pay them off right away so that it doesn’t go the other way and harm your credit score.
Don’t Use Too Much Of Your Available Credit At Once
Just because you have the credit doesn’t mean you have to use it up all at once, as this can be detrimental to your credit score. One of the main factors in determining your credit score is the ratio of your available credit to the amount of credit that you’re utilizing. In order to help your credit score, try to keep this ratio as low as possible so that credit bureaus don’t think that you have a tendency to go on spending sprees simply because you have the credit to do so.
Obtain Secured Credit If You Need It
If you are attempting to build up your credit score, however you’re current credit score doesn’t allow you to obtain a credit card then you may still be able to gain a secured credit card so that you can begin the process of fixing your credit score. They work just like a regular debit card or a prepaid calling card in that you deposit a sum of money onto the card and then spend it. In this way you are proving that you can be responsible with credit while still using your own money, and working to build up your credit so that you can then obtain a standard credit card.
Avoid Any More Major Credit Mistakes
Although this should be obvious, it’s something that you should always keep in mind so that you don’t fall into another credit rut or dig your financial hole even deeper when you’re attempting to climb out of it. One of the most typical mistakes that people make is not paying their credit card bill on time. You may want to set up an automatic payment system in order to ensure that you always at least make the minimum payment on your credit card bill so that you’re never late. Doing so will allow you to make larger payments at your discretion.