Repair your credit in 6 ways in 2019
Financial stability is key for everyone. However, that is easier said than done. So, the question that lingers in everyone’s mind is “how do I start my journey towards financial stability?”
The answer is with a great credit score. A good number of people don’t know that they can improve their credit scores. Implementing such improvements gives you a better credit score that will help you land credit cards or better interest rates for that car you’ve always dreamt of. As a result, you end up saving more money and more money in your pocket means financial stability.
This article provides you with 6 ways you can improve your credit score in 2018. Some of the pointers are simple to implement while others will help you in the long term. Read on to find out how you can repair your credit.
Establish a proper communication channel
Initiating the journey towards repairing your credit is such a daunting task for a number of people. It is also understandable why this is so. Debt collectors call you every now and then. It’s easy to get distracted and lose focus on the main goal which is fixing your bad credit. So, here’s what to do when you find yourself in such a predicament.
Take some time off to establish a proper communication channel. This means writing letters to the debt collectors and making it clear that you need all communication via mail alone.
This gives you some breathing space. Time to re-organize yourself include tracing all paper trail crucial to fixing your credit instead of holding your breath every time you hear the phone ring.
Scrutinize your credit records
After you’ve gotten the debt collectors from blowing up your phone, you can start focusing on your credit reports. This means understanding where you stand when it comes to your credit score.
You can do this by requesting a copy of your credit report from one of the 3 credit bureaus or all three for free. Getting a copy from all 3 is advisable since the information from one might vary from the rest. It will also paint a clear picture of where you fall in terms of your credit score.
You can also get a copy if you were denied employment or credit based on your credit report. In addition, you can access your FICO score or find out whether your credit company offers such services.
As you continue maintaining a clean credit profile, you will want to spread out the free requests so that you always know your credit position all year round. If you intend to get a mortgage or car loan, it is advisable that you compare the reports from all 3 credit bureaus. With the 3 you can check out the entries that affect your scores negatively. From there you’ll know where to start.
Check for the biggest drainer of your finances
Liens, bankruptcy or judgement damage your credit profile the most. If you have such issues, you may want to deal will them as soon as possible.
Other than that, other errors such as the amounts, dates or other inconsistencies could have been reported in an inaccurate way. If this is the case, you can take up the matter with the company or move to court.
In addition, fix your eyes on charge-offs and collection accounts. Errors in these entries are more dangerous than one late payment. If you note such errors and you are unsure of where to begin, don’t hesitate to get in touch with a credit repair company for more advice. Some companies offer free consultations and you can get them to focus on a certain problem.
Countercheck your report for anomalies
Debt collectors are famous for dirty tactics and once you are aware of that, you can go back to your credit report for another round of grooming. These collectors list re-aged accounts with recent inaccurate dates to get you to pay a debt way past its reporting limit.
So, you need to counter-check and ensure that all present negative entries are still up for listing on your account. In addition, you can dispute these debts since paying off the debt will do you no good than if you had corrected the matter.
With the above in mind, it is your responsibility to ensure that your credit score is accurate and that old debts aren’t listed in your credit report. If you note such, take the necessary steps to eliminate the same.
Increase your credit limit
Your credit card utilization also affects your credit score in ways you didn’t know. Credit card utilization creates another factor which is the ratio of the credit used to the credit available. It gets serious when you surpass 50% of your credit. So, maxing out your credit card will damage your credit score.
To get your ratio down, you can employ one of the following steps. One is to clear the debts owed, but there is another step often overlooked but has a greater impact. This is by increasing your credit limit. If your credit limit is at $5,000 and you’ve already used up $2,500 of this, increasing the limit to $10,000 improves your ratio a great deal.
You can call up your credit card company and ask them to increase your limit. This should be easy if you have a great history of paying up because the company will also be looking to pile up more balances to make money.
Also, try not ending up in the same situation by using up all available credit because there is only one outcome. You’ll end up in deeper debt than before.
Get a pro to fix it
You need to understand that the journey towards fixing your credit is tough and requires a lot of willpower. So, seek the help of a professional if you think it’s going to be a real challenge. They will keep track of any developments, timelines or any other changes on your behalf.
Take some time to research for a reputable credit repair company or specialist to kickstart things. You’ll then get some peace of mind and a chance to focus on other equally important matters. Nothing is free though, but there is a wide range of companies that offer customized budgets that work best for you.
As mentioned earlier, repairing your credit requires a lot of willpower. It is also worth mentioning that the results will not come in a day’s time. This is a long-term process, but it is worth it. Think of the annoying phone calls from the debt collectors and how many times you’ve been turned down due to a poor credit score.
Mistakes are bound to occur, but it’s how you rebuild your credit score. If you follow the above steps, you’ll be in a better place financially.