Easy And Manageable Credit Score Repair
Posted at by ifydcat on category CreditIf your credit score has plummeted in the past year, then you should take necessary actions for immediate credit score repair. Your credit score dictates nearly every aspect of your financial life. Not only is it used as a basis for creditors on your loan applications. Also, important individuals such as a potential employer or landlord check your credit scores to find out what kind of a person you are financially. Nowadays, a credit score is as important as your reputation. If it has turned bad, it needs to be restored as soon as possible, for obvious reasons.
Your first step in credit score repair is to request a copy of your credit report in the three major bureaus. You can do this online. Some websites offer them free. Now, go over each one carefully and check if there are any errors in the report. It is not the agency’s responsibility to correct any mistakes. If you find any, list it down and report it to the appropriate bureau. It would also be helpful to write the creditor who made the mistake in the report.
Your next step is to check the bad marks on your credit report and see what has caused them. If these bad marks were caused by outstanding debts, then pay them as soon as you can. In addition, give priority to those with the highest interest rates. In line with this, if your bad marks come from account balances that are over seven years old, be advised that you can easily have these accounts erased from your report. An account more than seven years old is automatically considered null and void.
Meanwhile, you should learn to develop habits that will help you become successful in credit score repair. Remember that your credit score is as good as your reputation. Sometimes it is even more crucial than your reputation. Always pay your rent, utilities, mortgages and credit card bills on time. Moving to another residence or leaving your present job to take on a new one will decrease your credit score considerably. As much as possible, maintain savings and checking accounts. More importantly, make a budget and strictly stick to it.
For accounts that you can close, close them immediately. Also cut up all credit cards that you are not using and pay the balances for these cards as soon as possible. If your monthly income is not enough, you can sell your valuables or liquidate some properties that will assist your credit score repair. Do not live extravagantly; buy only what you need, such as food, gas and shelter. As much as possible, prioritize your debt payments.
A credit score repair is not an overnight event. It will take some time before you can actually see an improvement in your reports. Nevertheless, once you have established a good credit score again, the credit score of the past would not really matter. Thus, it is important to increase your credit score as soon as possible so you can enjoy financial freedom in the immediate future.