It’s the year 2012 and if you’re currently caught up in bad credit, now could be time for you to begin fixing your credit score. Look at the following quick credit score fixes:
1. Check your latest credit report.
Consumers are entitled to receive one free credit score from all of the three credit bureaus annually. Start the year right by ordering up to date copy of your credit report online. Visit www.annualcreditreport.com to acquire your free report.
2. Clean up errors in your report.
Errors in your credit report can badly hurt your rating. According to the FCRA (fair Credit Reporting Act), consumers have the right to dispute credit report errors by sending a letter to the bureau that issued your report. For instance, check if there are unauthorized charges or negative information that has been in your report for more than 7 years. In your letter, point out the specific items that need correction. This step alone can instantly improve your credit score by a few significant points.
3. Pay off past due debts.
Are there debts in your account that are not yet paid? Do not delay. Make an effort to pay off your creditors as soon as you can. If it’s not possible for you to pay all your debts at once, check which of your accounts incur the highest interest rate first.
4. Stay current with your payments.
Aside from paying your old debts, be sure to keep up with your current payments as well. This includes your mortgage, credit card, and monthly utility bills such as telephone, cable, internet, etc.
5. Negotiate with a creditor.
If you have incurred a large balance in one of your credit card accounts, the best thing to do is negotiate with the creditor. If you are presently experiencing financial crisis, speak with your creditor and explain your situation. Ask your creditor if you can adjust the repayment terms to make the task of repayment easier. The same principle applies with other types of debt such as mortgage and personal loans.
6. Do not close out unused accounts.
Never try to close an account if it has an existing balance. Doing so will badly hurt your credit score. Closing an account is not recommended because it can dramatically pull down your rating. Does the credit card carry a high interest rate? If yes, do not immediately cancel the card. Instead, use it occasionally for small purchases to prevent the account from automatically closing. Afterwards, pay off your full balance right away to avoid the interest rate fee.
7. Use your credit card regularly.
If you do not have credit card debt, one way to boost your credit score is to use your credit card frequently for small purchases. Keep in mind that you do not need to carry a balance to build a high score. It is not necessary to incur a high balance to build a high score as well. What’s most important is to use your credit card regularly and consistently pay off your charges on time.
