Like it or not, a bad credit score can have a tremendous impact on your life. Your ability to make big-ticket purchases and to get essential services will be greatly limited by a poor credit history. If you are presently wondering how to repair your credit score, you are not alone. A widespread decline in credit scores has been one of the unfortunate side effects of the recent recession. Fortunately, there are steps you can take to improve your credit and make your life easier. The first part of repairing your credit score is to address the issues that damaged your credit, including:
• Errors on your credit report
• Dormant credit
Repairing your credit involves:
• Paying Your Bills on Time
Take charge of your bills. Determine how much you owe for everything from your gas to your credit cards and home loans. Keep track of your bills and make sure that they are paid on time. Using automatic payments can be helpful, providing there is money in the accounts from which those payments are drawn.
• Paying Attention to Your Credit History
You can address this by getting a copy of your credit report. You are entitled to a free copy of your credit report from the three credit bureaus:
This can help you to stay on top of your credit and deal with the problems as they come up. These problems include erroneous information. The credit bureaus only report information, they do not verify it; making sure that the information is correct is your job. Errors will affect your credit score and may result in you paying more in interest.
Get a Secured Credit Card
To get one of these credit cards, you will have to put down a deposit to secure the card. Make sure that the secured credit card you choose reports to the credit bureaus. The activity on the card will help to repair your credit history and improve your credit score. When shopping around for a secured credit card, be sure to examine each option carefully and do not apply for too many at once; opening multiple new accounts in a short period can harm your score.
Using Your Credit Card
You should use your card regularly; this may seem odd, especially if misuse of your credit card is one of the reasons that you have poor credit. However, it is important to note that dormant credit can also be harmful to your score. Not using your credit may mean that there is too little history to improve your score. One way around this is to use your credit card for one bill only, and to pay off your balance on time every month.
The problem of how to repair your credit score takes time and discipline to solve. Negative information will not go away overnight, but if you follow the advice above and wait patiently, you will see your credit score improve eventually.