Credit Repair Tips

Damage to your credit is devastating, but not irreversible. Regardless as to whether you went on too many shopping sprees or hit by economic pressures, you can reverse the effects of these bad credit by practicing these credit repair tips.

Secured Credit Card

If your credit has suffered and you are trying to rebuild it, many options are available. So even if you can’t qualify for a regular/unsecured credit card, you can still get a secured credit (backed by your own money) and build up your credit from there. Then later once your credit improves, you can graduate to an unsecured credit card. This process will help prove to lenders that you’re credit worthy and responsible enough to be given a second chance.

Improving Your Interest Rates

You can keep your interest rates lower by working to keep your credit score as high as possible. This will make your payments easier and it will enable you to repay your debt a lot quicker. Quickly paying off your debts is a good way to improve your credit score. This will gradually earn you access to more competitive interest rates.

Clean Up Your Credit Report

When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative item on your credit report.

Pay Your Bill On Time

It is essential to pay all of your bills if you are looking to repair your credit. You can’t just pay whatever you want whenever you want. You need to pay your entire balance when it’s due. Your credit rating will quickly rise as you settle up your overdue bills.

Check your credit report to see if you have any missed payments. Give it a once over and check for errors, then start the hard work of fixing any problems that exists. Always pay off the debt with the highest interest rate first, but don’t neglect your other debts.

Avoid Credit Repair Scams

If you decide to work with a credit repair agency, make sure the company that you are working with is legitimate. You have to watch out for credit repair agencies that promise more than they can deliver or are simply fraudulent. Sadly, many people have fallen for credit repair scams. If you do some online research, you can find out what people really think about the various credit repair agencies. This will help tremendously in choosing a safe and effective company.

Conclusion

Put these credit repair tips into action now to get your credit under control sooner. Low credit scores can adversely affect the actions you take in life so start now to begin increasing your credit rating.

22 thoughts on “Credit Repair Tips

  1. This requires a lot of discipline but is sound advice for people looking to improve their credit score. A good credit score would inevitably mean lower interest rates on loans.

  2. Once I was once a naive person who thinks credit card can’t hurt me. I was wrong when I found myself buried under mountain of debt for years. I don’t have the discipline nor patience to do it myself so I seek out a credit repair agency and almost falls for their scam until a friend of mine recommended me to a more legitimate company.

  3. IT is so essentially to keep a high credit score, and honestly far easier to do than people think. It can be as simple as just making sure that payments happen on time, however with that particular item the reverse is also possible, and can cause the need for a credit repair agency or other method of once again raising your score.

  4. This article was very well written and all of the information seemed very logical but there seemed to be no evidence to back up the information being stated. I recommend that you add something that allows the reader to trust that this information is trustworthy and not just a bunch of mumble jumble.

  5. I was offered once help to build my credit back up, but I did not have the money to pay for the service, so, I did it on my own. It can be done people, do your homework and be patient.

    1. Yes it can be done, but everyone is not cut out to handle this on their own. It take a lot of follow-up, patience and organization.

  6. I used to have a credit score of 700 and that’s how I bought a house. But finances turned bad and I ended up selling the house through a short sale and going bankrupt. I don’t have credit cards anymore and still don’t qualify for any (recently tried Kohls). But my credit has gone up a bit I guess from paying off doctor bills and being on time with current utility bills. I may try the secured credit card route to help my credit score more!

    1. Trust me, the secured card route works for people trying to rebuild their credit. I know this from personal experience. Just make sure if you decide to get a secured card, get one that graduates: meaning that once you’ve it for some time and have built a history of good payments and improved your credit a bit, the secured card would automatically graduate to an unsecured card. Many popular secured cards won’t, but if you can find one that does then this would be the best option. Perhaps I will write an article about this with recommendations soon. Also, a good place you might wanna check is with your local credit union.

  7. A bank sent me a credit card when I was in college and it got me in a lot of trouble. It didn’t seem like real money until I started getting bills I couldn’t pay. I got so behind. I ignored the bills and that just made it worse. I never understood how important my credit score was until it was too late. I’m still digging out from under the mountain of debt, mostly interest. The best advice here is “pay your bill on time”. I’m doing that now, but not really getting ahead and paying it down. Maybe I should check out that secured card, or even talk to a credit repair place.

    1. Hi Debbie, thanks for commenting. Yeah, credit card companies are known to target college students; they see them as easy prey. Make sure you’re paying more than just the minimum. Paying only the minimum would likely take you years to pay off and a lot of money in interest depending on the amount of your debt. And yes, maybe it’s time for you to get professional assistance with your debt.

  8. Cleaning up your credit report is such an important step; I wish I had learned about it sooner. It’s so easy to get mistakes stuck on it. Anyone else out there with bad credit should get on it as soon as possible!

  9. As hard as it may be, try to save money and build a nest egg. A rule of thumb says at least 3 monthly salaries. And you shouldn’t touch that money, but really leave it for emergencies, like your car broke down or your pipes burst.

  10. Last January 2016 a friend of mine lost his job and remains unemployed. He could not afford to pay all his credit card bills. It helped him when the bank approved his proposal for giving him a payment rescheduling. So I truly aggree, “Pay all your entire balance on time.”

  11. I was scammed before by a credit repair company before. They took my card information and now my credit is even worse!

    1. Hey Joe, thanks for your comment. Sorry to hear what happened to you. This is why it is vitally important to do thorough research, understand the company’s terms and know that the company you’re dealing with is legit. I sure hope that you reported this company to the BBB and other authorities and consumer review sites!

  12. I improved my credit score using a credit repair agency. Just be careful to watch out for companies that try to scam you. A quick google search of the name should tell you if their trustworthy or not.

  13. The negatives on my credit report prevented me from getting lower rates of interest on my loan. Later, I found it difficult to repay and it ruined my credit report further.

    1. Yeah those negs can really weigh you down. Hope you finally got your credit cleaned up (or working towards it).

  14. It is very important to make sure your credit score stays as high as possible; low credit can affect many financial opportunities along with your chances of being able to buy items wherein your credit plays an essential role.

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