DIY Credit Repair is one of the best approaches to take control of your financial future. Your credit score is an important asset that can affect your ability to secure loans, credit cards, and even rental agreements. While manyIt turns out most people think they have to use a credit repair company, but you can do it yourself in just as effective way and be saving some cash. Thus are 5 actionable steps that you can follow now to improve your credit score and get back on a financial footing.
Importance of Credit Score
A good credit scores will offer you many benefits such as lower interest rates, higher credit lines and all sorts of financial opportunities. But, small blunders may also set you back. By doing these 9 DIY Credit Repair Tips you can work on fixing erroneous entries in your records, manage your credit responsibly which will lead for a better financial future.
5 Steps for DIY Credit Repair
- Credit Report Copies Required
The first thing that you need to do when trying to fix your credit is to order copies of each of these three credit reports: Equifax, Experian and TransUnion. Consumers are entitled to one free yearly consumer report from each of the three nationwide consumer reporting companies. This will show you areas where your score is suffering from.
- Check all 3 credit reports for errors
In your credit reports carefully look over for the wrongs, especially along the lines of;
Accounts you purchased which were supposed to be closed
Non-Your Accounts
Errors about personal information such as name or address
- Take a Stand On The Issues
Call the bank and bring any black marks to the notice of your credit report. Proper disputing (discrepancy) can improve your credit scores immensely over time, as opposed to simply removing error based entirely on this.
- Track feedback and take next step
The Fair Credit Reporting Act (FCRA) requires that credit bureaus investigate any disputes on file for your account within 30 days. If you are not happy the outcome you can attach more evidence and re-file another FCICU. The key is to be proactive.
Late Payments
Late payments areProbably one of the top messaging on lowering a credit score. Remember to pay bills on time. Crimes of inattention — missing a payment will often allow creditors to report this for 30 days, so even if you miss the mark, payment within 30 days won’t kill your credit too bad.
- Leave Your Old Credit Accounts in Place
Keeping older accounts keeps you on the length of credit history, a factor that can help improve your score. Closing old accounts will shorten the average age of your open accounts, and increase your credit utilization ratio which is bad for your score.
- Don’t Over-Apply for New Credit
Too many requests for your credit will lead to an abundance of hard inquiries which might make loan officers view you as a high-risk debtor. Check pre-qualification tools to determine if you are eligible without impacting your score.
- Keep your credit utilization low
A low credit utilization rate (less than 30%) is an evidence to good credit management. A good way to decrease your ratio without having to change how you spend is to plea for a limit increase.
- Pay Down Your Various Credit Accounts
Having multiple types of existing credit can help your credit score for the most part. The objective of having multiple types of credit is to:
Installment loans (ie. personal)
Mortgage loans
Revolving credit (eg. credit cards)
An open account where you must pay in full each month (charge cards)
Closing Remarks: Stick with Your DIY Credit Repair
It takes time, patience and discipline to repair your credit. Stay clear of credit repair scams by either tackling disputes yourself or taking advice from legitimate sources. With dedication and the right way, you can rehabilitate your credit and protect your financial future.