Ways to fix your Credit Fast

Finding out you have bad credit is hard for anyone. Maybe you found out when you needed credit for an emergency car repair or hospital bill. Perhaps you found out when you were denied a home rental or a car loan. Maybe you just know that with all your late and missed payments your credit is bad and you haven’t even requested a loan because you know you would be denied. No matter how you found out your credit was bad, it likely was a stressful and embarrassing situation and everyone deals with differently. There is a common thread sewing everyone with bad credit together, though, and that is the need to get their credit back on track.

While having bad credit can definitely negatively impact your life, it doesn’t have to be that way forever. The good news is that there are things you can do immediately to begin repairing and rebuilding your credit. Even better, the steps to rebuilding your credit are things you can do for yourself. Some of the steps along the credit rebuilding process are quick and give you instant results but others will take some time. Fixing bad credit is definitely a process and it is unrealistic to expect it to be instant. But, no matter how long it takes you to complete the steps, simply starting on the journey to better credit will help you build habits that will help you maintain your good credit once you get it.

Here are few steps you can follow to rebuild and repair your credit. We have numbered the steps to make it an organized plan you can easily follow, and you can take them just as they are lined out. If it is easier for you to use these steps in a different order, that’s fine, too. It doesn’t really matter much which step of the steps you take first, it only matters that you get started. Pick the easiest step for you to begin with. When you see how effective following the plan is, it will give you the confidence boost and knowledge you need to keep going and fix your credit.

Check Your Credit Report and Score

Knowledge is power when it comes to fixing your credit. If you don’t know what’s in your credit report, it’s a lot harder to get a handle on improving it.

You can get your free credit score and TransUnion credit report through Credit Sesame. When you join, you also get access to a credit dashboard that can give you some insight into what might be hurting your credit score. Once you have this information, you can take the next steps to fix your credit fast.

Look for errors or discrepancies in your report. These can drag your score down in a big way. If you find an error, you can dispute it online with the bureau that’s reporting it. If the credit bureau finds that you’re right about the mistake, they’ll have to correct or remove it, which could add points back to your score.

Get Your Credit Card Balances Under Control

Credit utilization — or how much of your available credit you’re using — has a big impact on your score. Maxing out your credit cards can keep you from taking your credit rating to the next level.

Look at what you owe on your cards in relation to your credit limits. For good credit, you should be aiming to use 30% or less of your limit at any given time. If you want to give your score an even bigger bump, try getting that figure closer to 10%.

If you can’t pay a big chunk of your credit card debt off at once, there’s a backdoor way to potentially improve your credit score: requesting a credit limit increase. Raising your limit can improve your utilization ratio. Just remember that this method works best when you don’t add to your card’s balance.

Consider Paying Off Collection Accounts

When a debt goes unpaid long enough it can land in collections. Unpaid collections can significantly ding your score and they can stay on your credit report for up to seven years.

There is some good news, however. Both FICO and VantageScore, the two major credit scoring models, have been updated to ignore paid collection accounts in your score calculation. If you’ve got some lingering collection accounts, paying them off could raise your score. In some cases, the collection agency may delete the account from your credit file altogether once it’s paid off.

Some Other Tips

  • If you are going through a hard time financially and find yourself behind on the debt payments then you need to consider approaching the lenders to negotiate a flexible payment plan. Most of the lenders will be more than willing to negotiate on the payment terms because it is more affordable than hiring a debt collection agency.

  • A lot of different open accounts will have the impact of lowering your credit score. Pay off the lower balances with the largest interest rates first and close them, or combine all your store card balances with the personal loan that is a lot cheaper on the interest.

  • You have to make a list of all credit cards and pay more than minimum on those with the greatest interest rate, and when those credits are paid up, only use that cards in an emergency. You should only use one or two credit cards and ensure that you have more than 30 percent credit available on them that will make a positive effect on your credit score.

The only way to fix credit problems is by taking a proactive approach and budgeting yourself, sticking to your budget, paying every bill on time every time, paying down your debts until they are gone, and — going forward — using the credit extended to you responsibly.

While it takes time to improve your score, with each month that you make your payments on time and chip away at the debt, you will see your credit score improve and you will have a much firmer grip on your financial stability and well being. Be patient with yourself, stick to your budget and consistently pay on time, and your efforts will be rewarded with great credit you have earned. Better yet, after repairing your credit using these steps, you will have the tools, knowledge and experience you need to protect and keep your good credit rating.
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About Debarpan Mukherjee

All The Articles of This Site Are Published by The Editorial Team,Consists of A Group of Well Skilled Highly Professional Bloggers.
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