You've decided to take the leap and fix your credit yourself. Great! But repairing your credit can be more difficult than starting from scratch. Despite making expensive past mistakes (or perhaps your identity was stolen), it can take time to get to where you want to be financially.
It's important to know where you'll start. It's recommended that you request a copy of your credit report. There are a number of places you can obtain this from. Once you know where you are score-wise, you should start to make an action plan with mini-goals that you can easily achieve regularly. This Credit Repair Planner is the perfect workbook to help you track your progress.
Ultimately, you want to ensure that all the data on your report is correct and that you dispute or correct any inaccuracies.
Here are 3 tips to help you repair your credit:
1. On-time payments
Pay all your bills on time especially those that report to the credit bureaus even if it is just the minimum payment. If that isn't possible, contact the lender to make an agreement. Payment history has the biggest impact when it comes to determining your credit score. Having a late payment can stay on your credit for a long time and can be the biggest hurdle to seeing an improvement to your score.
2. Be mindful of your credit utilization
Credit Utilization is the percentage of your credit limit that you use. The amount you spend has a strong impact on your credit score. It is recommend by credit experts that you use no more than 30% of the limit on any card- less is even better. Regularly check your credit utilization on all your credit cards and try to keep it low.
3. Get a secured loan or credit card
This product is perfect for people who want to build credit from scratch but is also great for those who are repairing their credit. These credit products require that you provide a deposit, which will equal the amount of your credit. The great thing is that it works like any other credit card or loan. Ensure that the lender for this credit reports to the credit bureau.
Overall, it will take some time but these tips will set you on the right path so you start fixing things now. You should start to see some improvements months down the line. Always keep your major financial goal in mind as your go on this credit-building journey. Lastly, don't forget that the Credit Repair Planner plus checking your credit report regularly will help you see your progress towards a better financial future.
-D. Stella
*This article is for educational purposes only and is not financial advice. Please contact with your financial professional regarding recommendations for your specific situation.