You may think that credit repair is so difficult. Actually it’s not. Similarly, increasing your credit score does not take you such a long time. You can take a look at the following steps in order to repair your credit as well as improve your credit score.
In general, to increase your credit score means qualifying for a bit lower interest amount while improving the terms. It is necessary that you may later need a good credit score in order to borrow money regardless of any reason such as buying home, buying car or just simply getting a credit card and even starting your own company.
You can simply understand that a credit repair is similar to building your network in which you only take it into consideration when it matters. Nevertheless, if you do not have a good credit score, you will not be able to fix that situation.
This is the reason why you had better repair your credit now as well as improving your credit score by following these steps below.
1. Take a careful look at your credit reports
Such credit bureaus as TransUnion, Equifax and Experian are asked to give their customers a duplication their reports every year. All clients need to do is just asking and asking.
There is another way for you to see your credit reports, which is taking advantage of a free service such as Credit Karma or any other services that you may find them useful.
As soon as you register your account, you can view your credit scores as well as information included in the reports. In general, the ways by which you enter to see your reports are sometimes the same, but not always.
2. Deal with negative marks
In the past, you might have to write letters to your credit agencies in case you hoped to deal with any mistakes. Today, such services as Credit Karma or others will allow you to do that process via the Internet connection.
Another problem to stick to your mind is that there are a lot of factors that may influence on your credit score than other ones. Thus, you should focus on more important aspects first.
It is highly recommended that you should get started with such factors as collecting accounts and judgments. The popular case is that to have at least one collection account turning up on your own report. For some users, they may have two or more accounts if they used to deal with different providers for various issues.
It is not difficult at all to fix those issues. You only need to click the ‘Dispute’ button, then choose a term that you need to deal with and after seven business days, the dispute will be resolved.
Otherwise, you can also deal with the mistakes via the credit agencies. You can take a look at TransUnion, Equifax or Experian and others that you may prefer.
It is also noted that some errors can be resolved longer than other ones. But you do not need to mind about that as after you start a dispute, all you need to do is just to wait. The credit agencies will take the responsibility to investigate and report the solution back to you.
3. Deal with wrong entries leading to late payment
Another thing to remember is to deal with incorrect entries that make payment done late. In fact, your lender may report that you have made a late payment even when you have done everything in a timely manner. This is the problem in which a credit card vendor may forget or fail to input your payment rightly.
In this case, you are definitely able to dispute regardless of any accounts (being opened or already closed) by using the same methods with disputing above marks.
Last but not least, remember that your payment history is one aspect that should be focused more because it affects your credit score. Thus, you had better clean up those mistakes completely.
4. Be nice when asking
In case you may fail to dispute a late payment or other issues, you should not give up. It is better to try asking with a good attitude.
Creditors may help credit agencies to remove entries from your credit report without notice. For instance, you may not know that you are charged your annual fee until the payment is too late. The late payment will be shown on your credit report so that you need to call your credit card provider and explain to them. Be nice when asking whether they could help you remove the entry. To conclude, whenever there is something wrong, you should not be angry. Instead, you had better ask your company nicely. That works.
5. Increase credit limitations
The last thing you should know is that your credit card usage is also an important factor influencing your credit score. In fact, the ratio between current credit to used credit is so different. In general, having a balance of over 50 percent of your current credit will have a bad effect on your total credit score.
If you want to increase your ratio, you should pay down your balances. Otherwise you are advised to increase your credit limitations. For instance, if you owe 2500 dollars on your credit card with a 5000 dollars of limitations, you will get the limit grown up to 7500 dollars. As a result , your ratio will immediately improve.
In order to increase your credit limits, all you have to do is just to call and be nice, of course. If you have already had a decent payment history, the credit card companies will be ready to increase your limitations as they hope you to carry a high balance in your credit. Last but not least, you should guarantee that you do not make use of any extra available credit as you may end up having a big debt.