Take Measures to Repair Bad Credit

By on February 6, 2018

Repair Your Credit and Improve Your Credit Score

There is no simple, one-size fits all method of repairing bad credit – It takes time and diligence. In fact, out of all of the ways to improve a credit score, quick-fix efforts are more likely to backfire so beware of any claims to improve your credit score fast. The best advice for rebuilding credit is to manage your finances and credit responsibly. If you have forgotten to make the occasional payment or have serious issues meeting your financial obligations, then you need to repair your credit history before you can see credit score improvement.

3 Measures You Can Take to Improve Your Credit Score

  1. Review Your Credit Report: Repairing your credit score begins with reviewing your credit report. Request a free copy of your credit report from your financial institution or non-profit organization and check it for errors. Your credit report contains the data used to calculate your score and it may contain errors – incorrect SSNs, non-reported payment histories and out-dated charge-offs will affect your score. If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.
  2. Reduce the Amount of Debt You Owe: Your debt-to-income ratio is part of the credit score calculation process. Lenders want to see that you are not maxing out your credit limits – leaving little or no room to leverage your money. Reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. Try to stop using your credit cards until you’ve paid down the balances. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.
  3. Set up Payment Reminders: Paying back your loans on time is one of the biggest contributing factors to your credit score. Many banks offer email or text message payment reminders through their online portals so you never forget when a payment is due. You may also want to enroll in automatic payment plans to have payments automatically debited from your bank account and sent to your credit card or loan provider. Some automatic payment programs only cover the minimum balance owed, while others offer excellent discounts for ensuring payments are made on time. Ask your financial institution or credit counselor if automatic payments are right for your situation.

When negative information in your report is accurate, only time can make it go away. Reputable credit counseling organizations or your personal financial advisor can advise you on managing your money and debts, and help you develop a budget you can live with. Develop a personalized plan to repair your credit and solve your money problems.

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About Terri A. Kamoto

Senior writer for FSN - Terri is a former financial analyst dedicated to making personal finances, budgeting, investment and insurance advice accessible, up to date and easy to understand. It is hard to find professional advice written in a language someone without a financial background can understand. Terri helps companies synthesize industry lingo and expertise into clear and informative content which builds smarter, financially successful individuals. You can find Terri on !

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