Repairing one’s credit is not a process that happens quickly. It sometimes takes a lot of time and effort to clear up. However the good news is that you can repair your credit with just a few easy steps.
How do you know if you are in need of credit repair? A good number of economic and credit experts are in agreement that if you have a credit score below 600 it is probably time to start fixing up your credit. Having a credit score lower than 600 usually means you cannot get approved on anything from mortgages to credit cards to personal loans. Start your credit repairs by taking baby steps. The three items listed below will start you in the right direction.
1. Pay your bills on time
One of the fastest ways to boost your credit score is to simply start making your payments on time. When I say on time I mean always pay your bills on or before the due dates. When you make a late payment it can reduce your credit score in the neighborhood of 90 points. That’s a major hit to your credit. Also, that late payment could sit on your credit report for a couple of years before dropping off. Doing this for one to two years without stopping can notably improve your score.
2. Check for inaccuracies
You are allowed to obtain one free credit report every year. Use this to your benefit and pull a report from each of the big three agencies on an annual basis. Comb the information for errors and if you find problems of any kind start the dispute process as outline by each agency immediately. It is a very simple process and making sure everything is correct can help to get rid of a mark that shouldn’t be there in the first place.
3. Be a responsible credit user
Start small. Use and paying off one credit card per month. Assemble a fresh history so that your present and potential creditors see that you can be a dependable client. Showing how responsible you are adds points to your credit score and will make the difference between a bad credit score and a good one.
Credit repair does not mean you have to do a lot of hard work. Just take your credit repair one step at a time and you will see that it can make a huge difference in a short amount of time.