Carolyn Anderson asked: If you are applying for a job or trying to make a loan or mortgage, you may find it important to repair your credit report and improve your credit score. Of course, your credit score speaks largely about how you manage your finances and it can also be the basis of loan lenders on your attitude towards your financial obligations.
To help you repair your credit score or improve it after you have done the necessary fixes to your credit report, here are a few tips that you might find useful.
- Write down each of your card’s credit limit and due dates. It is also wise to memorize or jot down in a piece of paper the due dates and the credit limits of each card that you use so you will be reminded on when to use and not to use one. One of the main problems with credit reports are those late payments and those credits cards that have been maxed out.
- Always make sure that you pay your balances on time. This will help you avoid late payment fees and of course, prevent it from staining your credit report at the end of the year. Remember that any accurate negative records on your credit report can stay on for years before you can totally get rid of it.
- Do not be tempted with just transferring your debts to other accounts. Pay them off if you want a cleaner credit report. Of course, if you want to improve and repair your credit score from a low one to something impressive, then you must start paying your debts and not just moving it around.
- Let your creditors know if you are having a difficulty in paying your debts at the existing terms. You may also get in touch with a credit counselor so you can get advice on how you can go about paying off your debts given your current situation.
- For some, opening new accounts that you don’t need is sometimes a temporary fix to improve credit score, but keep in mind that this may boomerang and may eventually lower your credit score more. However, if you had problems with your credit report and you are determined to re-establish your credit history, you might want to open a new account but keep in mind that you have to be responsible in establishing your new credit record.
- Make it a habit to request and double-check your credit reports every year, you can get it online for free but you may need to pay an amount if you request for more than once in a year. Also make sure that you keep receipts, supporting documents and a record of your payments. One the most common things that may need dispute with your credit score are those delayed payments and if you can contest it with your supporting documents.
Indeed, you can improve and repair your credit score if you are responsible enough to manage your finances.
Pamela
