Many people think that getting into more debt is a path to building good credit. But this is totally wrong. Rebuilding credit in the right way is a matter of your financial health.
Great American Credit Repair provides the best service to individuals by analysing their credit individually to rebuild credit safely without adding financial risk.
Here are the steps which can help you to understand how to improve your credit score without getting into more debt.
Check Your Credit Report for Errors
- Get your free credit reports from AnnualCreditReport.com. Also you can get a copy from three credit bureaus.
- Find out incorrect late payments, duplicate accounts, or outdated information.
Start Paying Timely
Timely payment is solely responsible for 35% of your credit score.
- Set up autopay options to cut the bill automatically even if you are busy
- Use calendar reminders for remembering due dates
- Ask service providers to ensure that they report on-time payments to credit bureaus
Use a Credit-Builder Account (Not a Credit Card)
Open a credit-builder account with a community bank or credit union and deposit a fixed amount. They report your payments to the bureaus.
- Pay a security deposit for a credit builder account which will act as your credit limit. For example; If you deposit $500, your credit limit will be $500.
- It will help to establish a positive payment history
Become an Authorized User
Ask a trusted friend or family member to add you as an authorised user on their well-managed credit card. It doesn’t mean you need to use their card. Their well-maintained credit card will help you to prove yourself as a good and authorised credit user. Rebuild Credit Without Debt.
Before asking them make sure that their account is-
- recognized as good
- Example of low credit utilisation
- active in reporting their history to all 3 credit bureaus
Report Rent & Utility Payments
- Though on- time payment represents financial responsibility and it leads to better financial opportunities, many residents’ payment history of apartment rent and utility bill has not traditionally been reported to the three credit bureaus or added in credit scores.
- You can’t add your payment history to the report by yourself. You can benefit from rent reporting services like Experian Boost or Rental Kharma, which help report recurring rent and utility payments to credit bureaus. Rebuild Credit Without Debt
- The Experian Boost service is specifically designed to help with on-time payments. Paying your utility bills on time can increase your credit score.
- Late payments don’t boost or affect your credit score.
It’s a simple way to improve your score using payments you’re already making.
Keep Old Accounts Open
- Keeping old accounts open (even if you have zero balances) represents you as a stable credit holder which has positive impacts on your credit score.
Avoid New Credit Applications
- Everytime you apply for a loan or a new account within a short period add a hard inquiry in your report which negatively affects your credit score.
With Great American Credit Repair, you can enjoy your credit rebuilded legally without any hassle.