Five Ways to Focus on Credit Repair

Credit repair is an elusive animal to many, but there are plenty of ways anyone can help themselves improve. Start small by:

  1. Checking your credit report. Your credit report serves as a financial map. The right information can lead to credit approval, while the wrong information can place roadblocks in your path. Why settle for a lower credit score if you don’t have to? Talk to us about getting a free copy of your credit report to review. Verify the information you see, and make a list of any mistakes or unfair credit reporting you find. Good credit repair begins with collecting all the facts.

  2. Paying your bills ahead of schedule. Shifting your payments ahead by as little as seven days can do wonders for your credit score. Payment history accounts for 35 percent of your total, making it imperative to pay close attention to your bills. Paying early each month will reward you with a positive mark on your credit report, not to mention a bundle of savings on accrued interest. You have nothing to lose and bonus points to gain. It’s a win-win.

  3. Learning about credit utilization. Keeping a manageable account balance is only half the battle when it comes to credit repair. Your revolving credit utilization ratio  represents the amount you owe to credit card companies vs. your total credit limits. Keeping this number below 25 percent for each card you hold is essential to achieving the most effective credit repair. For example, if your credit limit is $10,000, think twice before carrying a balance greater than $2,500.
  4. Don’t close old accounts. If you’re looking for a quick credit repair fix, simply retaining your oldest accounts might do the trick. Length of credit history accounts for 15 percent of your credit score, which is why closing an old account has the potential to do some damage. Moreover, to prevent a company from shuttering a very old, unused account, consider dusting it off and charge something occasionally. Leveraging your past can help you work toward a higher score.

  5. Asking for help. Credit repair is usually never cut-and-dried. The time, knowledge, and action it requires to tackle every component can be daunting. If you feel the pressure compounding, asking for help is the best step to take. Contact us for a free credit report and consultation. We can help you learn more about your credit status and offer proactive solutions. Financial freedom begins with the first step, so don’t wait to take it.