When you think about repairing your credit if it is in a bad condition, you probably feel as if you are embarking on a weight loss program. Yes, just like losing weight, bad credit repair may take some time. In fact, there is no easy and fast way to lose weight and also repair your credit. If you try to do these quickly, they will only backfire on you. So don’t listen to anyone who claims to be able to fix your credit fast. It is just not possible.
The perfect suggestion for improving your credit is to be responsible about managing it over a period of time. If you have not made any steps toward doing so, then it is time to do so in order to see an improvement in your credit score. Below, you will find a few tips on ways you can improve your credit.
Take Immediate Action
One of the first things to do is to get a copy of your credit report. You can request this from the credit bureaus. Once you receive the report, take time to check for any mistakes or negatives. If there are errors or late payments, you need to fix those. Write a dispute letter to the creditor or reporting agency to handle the error or errors. If your late payments are legitimate, try to start paying on time. You could set up email or text reminders for yourself in order to pay on time or schedule automatic payments with the creditor to take money directly from your bank account each month. Try to reduce your outstanding debt by paying more than the minimum payments every month. One more important step is not to use any of your credit cards for future purchases. If you are not disciplined enough, you can go a step further and cut up the credit cards. Keep a check of your bank statements to make sure that no one is using your credit card fraudulently.
Your payment history on your credit report contributes to 35 percent of the calculation of your FICO score. This is where you want to pay the most attention because any previous late or missed payments cannot be easily repaired. This will take time. So try to pay all of your bills in a timely manner because creditors look at delinquent payments in a negative manner. It will only hurt you in the long run, especially your credit scores and financial reputation. Once you are current with your payments, continue to keep paying on time and this will subsequently improve your credit scores. As time goes on, your past maladies with your bad credit rating will fade.
You should also be mindful that if you try to settle your collections, it does not remove the item from your credit report. You probably have to take one extra step in contacting the creditors and making sure that they are reporting to the credit bureau that you have settled.