You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, email messages, and maybe even calls offering credit repair services. They all make the same claims. Do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Here is how you can repair your credit score without a credit repair policy.
Where Do I Start?
Check your credit score to get an accurate starting point and to ensure accurate scoring. Some of the best companies are Equifax, Experian and Credit Karma. By law each major credit company must give you a free copy of their credit report immediately. Make a solid plan to improve and maintain your credit score. Be sure to list what is in collections or what has been at the finance. Place counterattacks on the negative errors to your score, and how to save money and reduce spending in the army. Fix any errors and call any collections agencies to ensure that the errors are corrected with utmost immediacy. Usually, the credit is scored on a scale of 0 to 830.
- Bad Credit: Below 600
- Poor Credit: 600-649
- Fair Credit: 650-699
- Good Credit: 700-749
- Excellent Credit: 750 +
Let’s Bring the Limit to the Skies
If your credit score is lower than you hoped you can start by minimizing debt. The best way to go about this is to pay off as much of your accrued debt as you can afford to do so at the moment. One of the best ways to keep your payments down is pay off a certain amount off your credit card in increments. This not only ensure that you don’t hit your credit card limits before you want to, it also ensures a longer history of on time/ early payments. Other alternative options to getting improved credit are:
- Open a new credit card account to increase spending availability. Only use this as a short term solution. Do not spend more than your previous limit. You’re just trying to look like you have more restraints with your money.
- If all else fails, cosigning helps with boosting your credit score.
The Waiting Game and End Results
Most collections agencies remove collection inquiries from your credit score report within 30 days of the debt being paid off. Always ask when your credit score will reflect the payments. However, just because the debt is paid off, doesn’t mean your credit score will go skyrocketing through the roof. It takes 7 years for late payments and debt agencies to be removed from your credit report. On the other side of the report is on time/ early payments and your score is determined by weighing the two.
Can I afford that?
Ensure unnecessary debt is not accrued after your credit score starts climbing back into the zone you want to be in. Try to always pay in 2 payments- one 15 days before the pay date, and another 3 days before the payment is due. This convinces the credit company that you made 2 complete payments before the dude date.
Too many inquiries into your credit score can result in a lowering of credit so be careful of what you apply for, how often and how qualified you are to receive the credit card, loan or personal financing you are seeking. If you have cash handy, after making a large purchase on your credit card- pay off the card immediately.