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Having a good how to fix my credit score is important for many reasons, including saving money on loans and credit cards. It can also help you land a job or get a new apartment.
Repairing your credit can be a lengthy process, but it’s worth the effort in the long run. It takes patience and discipline to build a healthy credit history.
1. Check Your Credit Reports
It’s wise to stay up-to-date on your credit, whether you’re trying to apply for financing or rent an apartment. Inaccurate information can affect your ability to get approved for loans or credit cards and can lead to higher interest rates.
Many companies share payment data with credit bureaus, so making payments on time is important for your credit score. If you have difficulty paying your bills, try to work with creditors to find a solution.
Also, consider becoming an authorized user on a family member or friend’s credit card. By doing this, you can benefit from the account holder’s positive credit history without having to carry a balance. Just make sure the credit card reports to all three credit bureaus before doing this. Otherwise, you won’t see the effects on your credit report.
2. Pay Your Bills on Time
When it comes to fixing credit, paying bills on time is key. Late payments can blemish your credit score for years. Make sure to set up autopay or use a calendar to keep track of due dates. Also, resist the urge to close credit card accounts. Closing an account can reduce your available credit, which affects your revolving utilization percentage and hurts your credit score.
You should also pay off any accounts in collections, as this can be difficult (and expensive) to remove from your credit report. Just remember, if someone claims to be able to “fix” your credit for a fee, they’re probably scamming you. Taking these steps yourself is the only way to truly fix your credit. Using a service like Credit Saint to challenge questionable items on your report is an optional, but helpful, step.
3. Avoid Scams
There are credit repair companies that can work with you to help improve your credit score. However, there are also scammers who try to take advantage of consumers and charge them inflated fees with little to no results. Any company that asks for money upfront, requires wire transfers, or requests gift cards as payment is likely a scammer.
Another common credit repair scam is called “credit piggybacking.” This involves adding someone as an authorized user on the credit report of a person with a good credit rating to artificially inflate the consumer’s score. This is illegal and can get both parties in trouble.
4. Contact Your Creditors
If you find information in your credit report that is incorrect (a closed account showing up as open, an inaccurate debt amount, a negative mark on your report that is past the statute of limitations), you have the right to dispute it with the bureaus. Write a letter to the credit bureau and include copies of documents that support your claim.
Aside from disputing errors with the credit bureaus, one of the most effective strategies for improving your credit is to focus on paying bills on time. Remember that your payment history makes up 35% of your credit score, so it’s crucial to pay on time.
5. Contact the Credit Bureaus
The credit bureaus (Equifax, Experian and TransUnion) create credit reports that reflect information about consumers’ financial histories. Lenders use the reports to determine a consumer’s creditworthiness when they apply for loans.
If you have a problem with your credit report, it’s important to contact the bureaus and get it corrected. Errors in the reports, such as inaccurate negative items that don’t belong to you or a wrong name and address, can lower your score and make it difficult to get credit.
The credit reporting agencies provide a variety of ways to contact them, including online and by phone. However, if you need to talk with someone, be prepared for long hold times and have your identity documents handy. The process can take a while, but it’s worth it in the end when your credit scores improve and you qualify for better loan offers.