5 Ways To Quickly Repair Your Credit
Tips to Fixing Your Credit Quickly
There is no gainsaying that a low credit score is not good for business. The good news is that this can be taken care of, and quickly too. Depending on what the cause is, you might be able to significantly increase your credit score with these quick steps:
Pay Early
This is the most crucial step. Payment history is the major factor that affects and determines credit scores. When you make late payments, it may stay in your credit profile for up to seven years, that’s why a single late payment should not be made. However, in the event that, for whatsoever reason, you are unable to make a payment in due time, you should let the creditor know. This would make your creditor give you some time before reporting to the credit bureaus.
If your credit history has been negatively affected by late payments and you begin to pay your debts early from now, the effects of the previous late payments would begin to diminish.
Dispute Errors
Any single mistake on your credit reports may pull down your credit score. That is why, in order to fix it, you have to dispute such errors quickly. There are credit bureaus that you are entitled to credit reports from every week like TransUnion and Equifax. You should requests those reports and go through them thoroughly for any error like payments that were recorded late when you actually paid early or similar mistakes. After your identification of such errors, you should dispute them for them to be corrected.
Avoid Closing Cards
Closing your credit cards may be contradictory to your aim of increasing your credit score and improving your credit profile. This is because, when you close a card, you have forfeited the credit limit associated with the card. When your aggregate credit utilization is calculated, you may have a lower credit score. Also, to prevent the issuer from closing your card, make use of it often.
Secured Credit Cards
Making use of secured credit cards really helps in improving your credit score. Secured credit cards are cards that are backed up by a deposit. The cash deposit is made upfront and it is usually the same as your credit limit. You should make sure to choose a secured credit card that reports your financial activities to all the credit bureaus. You can make use of secured credit cards just like any other credit card. However, there may be alternative credit cards that do not require any deposit, you should contact your issuer to know more about them.
Regular Payments
This is another way to significantly increase your credit score. If you are able to make recurring payments or micro payments, all through the month, it can help in improving your credit. This is because, making frequent payments with your account helps in keeping your credit balances down. Apart from making payments on time, making frequent payments is a very important step towards enhancing your credit score and limits.
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