Here are some simple ways to improve your credit score and to remove negative reports from your credit record. Before trying these following steps, make sure you get a credit report/score from the three reliable nationwide consumer credit reporting agencies Equifax, Experian, TransUnion.
10 Steps to Improve, Repair and Raise your Credit
1 – The most important thing to do is to pay your bills on time. You can pay even before the due date because late payments will seriously affect your credit score (FICO). Remember always be organized and keep track of your bills and payments so you can avoid unnecessary late payments that will damage your score.
2 – Don’t let your balance be more than 50% of your allowable credit amount or if possible lower than 50%. Meaning don’t overspend, know your limits, it’s always best to use your credit card lightly to avoid going over the limit which can cause cancellation of your credit card.
3 – Don’t always apply for “no interest” special offers or credit promotions, like credit cards or car loans because your score goes down every time you apply for credit. To avoid this, don’t give stores your social security number because when they log it into the system it lowers your score. Only apply when you really need it.
4 – Don’t overlook not paying your utility bills on time, including internet, telephone and cellphone bills. Sometimes people feel that these are not as important to pay on time like other bills, so they overlook it and it hurts their score, don’t be one of those people.
5 – Avoid being a co-borrower or co-signer. I know sometimes you have to do it because you have to help your family to buy a car and sometimes to help family or friends build up their credit. The reason why you should avoid these situations is because sometimes they might overlook making the payments on time or they will overspend, ruining both of your credit scores. To safe guard this, you must remind your co-borrower to pay on time. Actually when you become a co-borrower it will really affect your credit worthiness. Sometimes if it’s a car loan you cannot even buy another car for yourself, so be careful.
6 – Let your co-borrower give you a copy of his canceled check. Let the loan be transferred to the co-borrower’s name when the time comes that the co-borrower is qualified. The purpose is to reduce the balance of what you owe and that will again raise your credit score.
7 – Don’t let your older credit cards remain inactive. Use them for minimal purchases such as food, clothing, dvds, because the lenders might stop updating those older accounts at the credit bureaus and it will not help you raise your score.
8 – Write to your creditors and negotiate to reduce the loan amount and pay it. Ask the lender if he can erase it from the report, if it is within their discretionary power. Don’t be ashamed to ask it’s always worth a try.
9 – Ask the lender or the credit bureau to erase any loans you found in your credit report that doesn’t belong to you.
10 – In case of credit judgment seek a lawyer on how to erase that judgment. You can try to negotiate with the lender and find a way they can help you erase the judgment. A credit judgment is public record, viewable by the general public. A judgment is entered against you by a lender when you have unresolved debt. A judgment can last on your record for 7 years, so it is important to try and vacate it. You can apply the same procedure on bankruptcy, foreclosure and repossession.
Remember to be responsible, always reduce your balance to the minimum as much as possible, and always try to pay your balance in full and use the credit card again. This will surely raise your credit.
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