Fixing bad credit is not an easy task, and it’s even harder if you’ve tried to do it in the past but failed. However, if you follow these 5 tips to quickly fix your bad credit, you can be well on your way to fixing up your finances in no time.
(1) Check Your Credit Report for Errors
One of the best ways to start fixing your bad credit is by checking your credit report for errors, but there are other smaller ones as well. Check with all three of them, and make sure you do this every year so that if there are any errors, they can be corrected before they become too damaging.
If you find an error on your report, contact the company and have them fix it right away! This will help ensure that it doesn’t affect your score any more than it already has. You should also check with at least one of these companies for many months for new information on how your score is doing.
(2) Dispute any Errors You Find
You can do this by requesting a copy of your credit report from all the major credit bureaus. If there is an error on the report, such as a late payment or incorrect address, dispute it with the bureau in question via phone or online.
Negotiate with creditors for reduced payments. If you have bad credit because of a sudden reduction in income, ask creditors if they would allow you to pay them less each month. In many cases, they will be more than willing to agree. In other instances, you may want to speak with a bankruptcy attorney about the possibility of filing Chapter much bankruptcy and then using that court order to settle some debts for pennies on the dollar.
(3) Pay Your Bills on Time
Paying your bills on time is the simplest way to fix your credit. It’s also one of the most important steps in a bad credit repair strategy. You can also make a budget, stop using credit cards and avoid opening new lines of credit while you work on repairing your bad credit. Once you’re making timely payments and have paid off any outstanding debts, it’s time to focus on rebuilding your good name with lenders and landlords by showing that you’ve been responsible for paying all of your other bills on time. One of the easiest ways to do this is to get another form of ID from an authorized provider such as your bank or government agency. That way, if there are any issues with your identity, creditors will be able to contact you for clarification instead of giving up on trying to collect payment from you altogether.
(4) Keep Your Balances Low
Bad credit is never fun, but you can fix it. Here are five tips to help repair your credit quickly:
a) Pay on time and in full.
b) Keep your balances low.
c) Don’t apply for too many new cards or loans at once or close old ones that still have a balance–chances are you won’t be approved for any of them!
d) Avoid applying for new credit cards if you don’t need them, as this will show up on your credit report as a hard inquiry, which can lower your score slightly by about many points per inquiry for the next many months
e) Put down big deposits with small monthly payments on your utilities such as cable, electric, gas, etc. Put down a security deposit for rental homes to protect against damage and unpaid rent.
(5) Use A Credit Monitoring Service
Monitoring your credit is the first step in fixing bad credit. A lot of people don’t even know what their score is and this can lead them down a path of making bad decisions. When you’re on a budget and need some new clothes, for example, it can be tempting to take out a loan from an unscrupulous lender with exorbitant rates. If you have low credit or no credit at all, then taking out loans like these will only hurt you in the long run by increasing your debt and preventing you from obtaining future loans. If you do not use any of these services, then you should wait until after using one of these five tips before taking any steps toward improving your credit score.