Fixing your credit is easy if you have the right strategy. Did you know that you can still fix your credit even If you have several missed payments, are behind on loans, have high balances on your credit cards, foreclosures or have gone into bankruptcy. If you have any of those previously mentioned “negative” items on your credit report, you might be asking yourself right now “How Can I Fix My Credit”
There are 5 key factors that go into calculating your credit score, and each one of these factors can impact your score differently, more on that later just know that there is not one silver bullet that fixes everyones credit.
Having a good credit score can open up doors and having a bad credit score will shut many of those doors, so improving your credit score is critical. If you have ever been denied for an apartment, car, or loan before you might have thought about hiring a credit repair agency to help fix your credit report. The truth is you can actually fix your score on your own!
You do not need to pay $2,000 to a credit repair company to remove late payments, and collections. To be honest, a lot of them will most likely take your money but not provide the results you are looking for.
It has been said “We learn best by doing things ourselves” and with the help of mentors or experts you too can fix your credit yourself.
The first step is to know if you have good credit, bad credit or no credit at all.
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What Is really Good Credit?
Before you fix your credit yourself, you’ll need to know where your credit stands. You can get your credit reports free once a year at My Free credit score or www.annualcreditreport.com. You can also track your credit score as you grow through Credit Karma, myFICO or Credit Sesame.
Related: Credit Karma vs FICO Score
Credit is broken down into score ranges from 300-850. A really good credit score is considered to be 700-760 which is usually enough to get you lower mortgage rates and qualify you for the best credit cards.
Don’t worry if you don’t fall into the good credit category there are still credit cards available to get you on the right path.
If you have bad credit, which is anything under 600 or no credit history at all you can still apply for credit cards.
You just might need to get a “secured credit card” or a credit builder card like Chime.
Related: Best Credit Cards For Bad Credit
Is All Your Information correct?
Once you find out where your credit stands, it’s time to take a close look at your complete report and make sure all the information listed is correct. The important things you’ll want to look out for is that your identity information is correct (spelling of your name, address, and social security number).
You will also need to review a list of your car loans, credit cards, student loans, mortgage, and other major purchases. Make a note of any mistakes or questionable items and make a copy of them.
Grab as much information as possible if you find an error as this will be your proof of the error. If you can’t show the credit bureau proof, they may not remove it from your credit report.
Can I Dispute An Error On My Credit Report?
If you find an error on your credit report you can contact the reporting agencies.
The big three credit report agencies are Experian, Equifax, or Transunion.
The best way to contact these agencies is through a written letter explaining the mistake and also attach a copy of the proof you have.
The reporting agency has days from the receipt of your letter to respond. So be on the lookout for their reply letter.
How Can I Fix My Credit?
When it comes to your credit the biggest factors effecting your credit are paying your bills on time, not maxing out your credit cards and by having high amounts of credit available.
If you have missed payments on your credit report these can remain on your credit report for 7 years!
It’s important to make sure you pay your bills on time and you do your best going forward to not miss any payments.
Setup automatic payments even if it’s just the minimum payment.
You can also lower your bills such as internet, cell phones, tv and cancel those subscriptions you didn’t know you had with BillShark.
If you have a high balance on your credit cards target one debt at a time.
If you have a credit card that charges interest and one that doesn’t pay the one-off with the higher interest rate.
You should also pay off the credit card with the smallest balance first, then take the money you were paying for that debt and pay down the next debt.
There are things you can do to fix your score in the next 30 to 90 days but it’s best to remember that credit is a tool that needs to be sharpened over time.
9 Steps To Improve Your Credit
Request Annual Reports
( https://www.annualcreditreport.com/ )
Dispute Any Errors
Stay Current on all your bills –
(Even if it means making minimum payments)
Utilize no more than 30% of available credit
(Keep balances paid down / Paid off every month)
Request Credit Line Increase
(Every 6 months you can request a credit increase)
Do Not Close Credit Lines/ Credit Card Accounts
(This hurts your credit age, and available credit)
Get added as an authorized User or Tradeline
(Have a family member with great credit history add you to their credit card as an authorized user)
Open New Credit Accounts (Increase available credit)
Monitor Your Credit Score With Credit Score Apps
If you’re ready to take your credit to new heights check out our Credit Repair Training.