Useful Quick Credit Score Repair Tips
Posted at by ifydcat on category CreditThere are a number of methods to handle your credit score repair. You don’t need to hire a pro to do it for you; you can do it yourself. Of course, a professional may be able to do it more efficiently, faster, and more confidently than you can. But, if acquiring the services of a pro is not within your budget, then you can do it yourself by all means. It is required, though, that to effectively fix your credit score, you need to go about it patiently, diligently and as organized as you can.
Your credit score is based on whatever loans you have made in the past, as well as your payment history. A big percentage of this comes from your oldest debts. If you’re able to pay off the amount of your earliest debt account, then that would considerably speed up the process of your credit score repair. However, as this is the oldest debt, it may also be the largest one. Even if you are unable to fully settle this debt, at least give it high priority. This and the debt with the highest interest rate should be top of your to-do list of the month.
Paying a little over the minimum payment required is also a wise move. Many people do not realize that doing so will significantly help in credit score repair. If you are barely scraping by, consider approaching your creditors. Negotiate with them as to what plan and payment method works best for you. Take note that once your credit score drops, you will get an endless amount of phone calls and letters from your creditors. To keep this from happening, go to them first and explain your situation to them. Your coming forward will assure your creditors that you have the intention to pay them, but don’t have the means to do so yet. Once they get this assurance from you, it would be easier to get a better payment plan from them. It would even make you sleep better at night.
Finally, when you’re in the middle of credit score repair, it is strongly recommended that you do not apply for another loan. Doing so will certainly decrease your credit score. Pay off your existing debt as fast as you can. Apply only for a new loan once you have increased your credit score to at least 550. For now, it is recommended to live within your means.
Credit score repair is quite a tedious task. It is not something that can happen at the snap of a finger, but we all need to do it for reasons that are obvious.