Low credit point reveals your inability in money management. Not only that, it also obstructs in obtaining bank loans.
Let us now guide you through some credit improvement tips.
Ask for your credit report copy
This is the foremost thing you should start with. You can start working on credit repair only when you have the details in regards to your credit record. Take a hard look at it; you will surely have some bad accounts that are spoiling the entire matter just like a fly in the ointment. There are three major credit bureaus and get report from each of them. Mark the areas which need immediate attention.
Remove the erroneous entry
Have you found any wrong entry in your credit report? If yes, then write to the credit bureau regarding the wrong listing and ask them for its removal as early as possible. An inaccurate entry brings your credit score down by more than 50 points. Once it is erased, a good aftereffect will show in your credit chart.
Pay back previous dues on credit card
Do you know how much your dues affect your credit history? More than 35%! More dues, more damage – it is just a simple equation. Your creditors directly repot the credit bureau regarding your dues and it hampers your status. Meet your credit card issuer and convince him to re-age the account. It will show that you have always been regular as far as timely payment is concerned.
Don’t apply for new credit cards
When your credit record is undergoing repair, don’t try for another credit card. Further credit inquires will negatively impact your score. Furthermore, a new card will curtail your credit age, implying a disadvantage for your already ailing credit record.
Pay off debts
Unpaid loans affect 30% of your credit score. So, clear them in full. If you can’t afford to pay back all dues, sell some of valuable possessions. It is a worth sacrifice to enjoy financial freedom through credit rank improvement.
Say no to new credit card buy
Credit card purchases will up the ratio of balance on credit card and credit limit. Higher balance will affect your credit rank more and more. So, make it a habit to pay in cash at least until the time your credit is back on the line.
Make sure to have accounts open
Closing even a delinquent account may infuse negativity into your credit record instead of improving the rank. So, don’t be in such a hurry.
Consult a professional
When you are at a credit mess, professional help can successfully get you out of the trouble. An expert will give you a complete guidance how to come out of troubles and not to slip into it any further. You may want to read Credit Zeal’s review of Sky Blue Credit who are one of the reputable credit repair companies in the industry.
Talk with your lenders
To your utter surprise, you may get the most valuable guidance from them. They even go far to reduce the monthly payment until you stand on your feet once again.
Have some patience
Nothing will change within weeks. At least six months – yes, that is the minimum time to pull out your dipping credit status. Be patient to witness a rosy picture in future.