Credit Repair: How Can You Improve Your Credit Score?

The following article about improving your credit score was written by Audric Stevens. He is a financial expert and a contemporary writer. He is involved in various online activities through which he imparts financial lessons to people with diverse needs. If you like this article, you can follow them here.

Why Is A Credit Score Essential?repairing and improving your credit score

Credit score is an extremely important financial information. When you’ll go to some lender and apply for a loan, you’ll have to present your credit report. This is mandatory and you can’t escape it in anyway. That’s why you must maintain a good credit score to prove your credibility to the lenders.

Generally, a credit score around 700 is considered to be a safe figure but most people fail to manage a credit score that high. Due to debt delinquency, lack of financial awareness, foreclosure or bankruptcy your credit score may drop. In such a circumstance, it becomes even more important to think about credit repair. The following are some essential steps through which you can repair your credit score in a timely manner:

Ways On How To Repair And Improve Your Credit Score
  • Have a look at your credit report first.
    You must check your credit report first. Contact credit bureaus Equifax, Experian and TransUnion to get the latest copy of your credit report. All the three credit bureaus may not provide you with the same report. There may be slight difference in the information as every creditor doesn’t report to all the three credit bureaus. A little difference is fine bu you must act as soon as possible if the difference is huge.
  • Find out the discrepancies
    After going through the credit report they provided you’ll be able to check what exactly what your credit status is doing. The credit bureaus prepare the report on the basis of information received from creditors. They generally don’t verify the information. So, there can be mistakes or wrong information. You need to point out the wrong information properly and prepare a list.
  • Dispute all the negative information
    If you have wrong information reported, then you must dispute that as soon as possible. You must send a letter to the credit bureau with the photocopy of your credit report. Use certified mail for that purpose. If you’ve documents to support your claim, then you must attach them with your letter too. The credit bureau is supposed to investigate the whole issue within 30 days of receiving your application and remove the wrong information right away. By removing the wrong information, you can repair your credit significantly.
  • Be a bit responsible with your finances:
    Finally, the most important step is to improve your habits as a consumer. Pay off your due debts as soon as possible. Going through tough times financially? Talk to your creditors and negotiate your debts. You’ll be able to pay off debts well on time. Never close your credit card accounts all of a sudden because it reduces credit score. Rather, maintain all your credit card accounts carefully. Pay your monthly bills on time. You must try to keep the revolving debt amount to 50% of the credit available to you. By doing that you’ll be able improve your credit score for sure.
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Apart from following all the steps pointed above, make it a point to keep adding positive information to your credit report. Try to balance your expense and income. This will help in reducing debt accumulation. Even if you end up accumulating debts, then make it a point to pay them off as early as possible.

Keep checking your credit report at regular intervals. Control your urge to apply for a new credit account every now and then. Maybe by following all those steps you can repair your credit score on time.

Photo Courtesy of Match Financial

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