Whether you’re just starting to build your credit, or you’ve had some tough luck with past due bills, this article should certainly be helpful. In addition to listing out the top 5 ways to repair your credit, we also give you details on exactly how to keep it there. That way, you don’t fall back down into the lower scores. So, if you’re wanting to improve your scores, be sure to keep on reading!
1. Apply For A Secure Credit Card
Applying for a secure credit card is one of the fastest (and easiest) ways to build up your credit. Not only are secured cards fairly easy to get accepted for, but they also allow for small monthly payments to be made. That way, you can get used to the way credit cards work, and practice for a while before applying for an actual credit card with a higher balance. Many people (young adults specifically) make the mistake of getting a high balance card first, and often fall behind on their payments pretty quickly. So, if you’re someone who takes your credit scores seriously, be sure to apply for a secured card first!
2. Pay Bills On Time/Set Up Auto Withdrawals
Although paying your bills on time should be something everyone remembers to do, many people don’t. In fact, a lot of credit scores are affecting not because the individual is short on cash, but because they simply “forget” to pay their bills. By setting up monthly auto withdrawals on your account, forgetting to make payments will quickly become a thing of the past. Fortunately, auto withdrawals can be set up for those who are behind on payments, and also those who are caught up (and just wanting to make sure they don’t miss one).
3. Speak With A Credit Repair Company
Due to the fact that credit repair companies only work with very low scores, this tip is solely for those with terrible credit. Though the process will take about 6 months to a year most often times, these companies are incredibly helpful, and will certainly improve your scores. They look at everything too. So, even if there are some payments you forget you missed, they will be sure to point them out to you. Since the demand for credit repair is so high, there are a plethora of credit repair companies out there. So, if you’re someone who falls into the low score category, be sure to contact one asap.
4. Pay Off Any And All Credit Card Balances
This is perhaps the most important tip of all when attempting to fix your credit on your own. Credit card balances tend to linger around for a while and can be paid off fairly quickly by simply calling your credit card provider and speaking with them about it. In fact, most companies will allow you to set up a monthly payment plan, which makes it easier to pay off the full balance. Fortunately, credit bureaus will remove these hits off of your report almost immediately after you pay them off too!
5. Have Some Activity On There
Although most people think that having “nothing” on your credit report may be good (since there is no negative activity for the credit bureaus to look at), it’s not. In fact, having no activity on your report is almost worse than having a few missed payments. This is because there is nothing for lenders or credit bureaus to go off of when looking at your statement. So, it is highly recommended that you get some activity on there and build up your numbers. Whether it is a small personal loan that you’ll work to pay off month by month, or a low balance secured credit card, it will certainly help.