Repairing Your Credit on Your Own – Properly
Raising your credit score is an important part of getting on the path to financial security. In case like mine (where you have a low credit score) I will attempt to give an exhaustive guide on how in only 6 steps, that anybody can follow independently.
Review your credit score and report
Begin with getting your through credit report all three essential authorities — Experian, Equifax and TransUnion. Each bureau must provide you with one free report a year. Check these reports for any discrepancies or outdated data that may prevent a hit to your score14.
Dispute Any Errors
If you see errors on your credit reports, resolve disputes directly. You can order online through the referenced credit bureau website. Clearing inaccuracies can earn you a decent punch or shot at your credit score25.
Pay Your Bills on Time
This carries the most weight and can make up as much as 35% of your credit score. To avoid a late payment: establish reminders, or just set everything to autopay and never worry about it again. 34
Keeping credit utilization low
Try to keep your credit utilization under 30% This essentially means that you should use only a part of the credit available to You. If you are over the 30% mark it is time to get busy and try to reduce this number by reducing/pay off existing balances; also-avoid creating new credit12.
Reduce Other Debts
Concentrate on eliminating debts, particularly high interest credit card debt.CreditRepair (ad) Instead, maybe try strategies like the debt snowball or avalanche methods to better pay down your tiny mountain of monthly left over.27
Keep Old Credit Accounts Open
The length of one’s credit history also is a factor relevant to the score. Aging Your Accounts (even if it’s zero-balance no-fee accounts) — This is a way of giving more years to your account ages and overall credit profile13.
Limit New Credit Applications
Unless absolutely necessary, do not apply for new credit. It changes every time you make an application, and only very slightly, but each one can dent your score a bit24.
By doing so religiously you can eventually get a handle on your credit score, and increase it without having to pay for more points.
