Low credit scores can negatively affect many aspects of your life, from not being able to get a mortgage or car loan to being turned down to rent an apartment or work. If you have a low credit score, you probably want to do everything you can to improve it. The following tips might help you get started.
Methods to Repair Credit Rating
one. Contact creditors to settle debts. If you have outstanding debt that you’ve been avoiding, it’s time to get going and take control of the situation. Bad debt can really lower your credit score. You may be able to pay off your debts for just a percentage of the total cost, and if you play your cards right, you can even ask that the creditor not report negative things to the credit reporting agencies.
2. Correct any inaccuracies in your report. It’s very important to get a copy of your credit report so you know what’s in it. In many cases, you will find errors. This may not be as drastic as someone trying to open an account in your name. Rather, you may see things like late payment notes when you have always paid on time. Contact the agency reporting this and ask them to remove the “ding”.
3. Pay bills on time. When you order your credit report, you’ll see that each of your creditors reports whether or not you paid your bills on time. This is an important factor in building your credit score. Late payments can reduce it. From now on, make sure you always pay your bills on time. One way to do this is to have creditors automatically deduct payments from your account.
Four. Pay the debt. One factor that plays a role in your credit score is the relationship between the debt you have and the available credit. For example, if you have a credit limit of $10,000 and a balance of $9,000, things aren’t looking so good. By paying down debt, you can improve that ratio and improve your score.
5. Hire a credit repair agency. As a last resort, you may want to hire a credit repair agency to act as a go-between for you. This should be your last resort; only do it when you don’t have time to take care of this yourself. If you choose to hire an agency, be sure to research the company before signing any documents. There are many scams out there.