Do you need to rebuild your personal credit? Repairing bad credit can take a few months to a few years, depending on the how bad the damage is. Nevertheless, regardless of how serious the problem is, you can work towards improvement one step at a time. Consider these three best ways to raise your credit report score.
Correct glitches in your report. Each year, thousands of consumers send dispute letters to the three major bureaus to correct errors in their reports. When was the last time you checked your own credit report? Check your report to make sure that it does not contain inaccurate information. In case you find errors, write a credit dispute letter and send it to the bureau that issued your report. If your complaint is valid, you will be sent an updated copy of your report for free.
Pay your debts. If the charges in your account are correct, then you should pay your creditors. If it’s not possible to pay all your debts at once, pay as much as you can, starting with debts which carry the highest rate of interest.
Speak with your creditors and try to request for modification of your repayment terms. Politely explain your situation and let your creditor see that you are doing your best to keep up with your obligations. Most creditors would gladly lower the interest rate or waive penalty fees if the borrower makes the request.
Avoid incurring new debts. As you work on debt repayment, you need to focus on the task at hand. Obviously, this is not the time to take on new credit responsibilities. Avoid incurring new debts as much as possible, especially if you own credit cards.
If you must use your credit card to prevent the account from automatically closing, use it only for small purchases and submit your payment right away. Do not wait until your due date arrives before sending payment. Remember that 35% of your credit score is based upon payment history so you can’t afford another late payment if you want to improve your score.
About the Author:
Suzy Vanstrusen is a credit analyst and a writer on the website EZCreditRepairSolutions.com. She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans. Copyright © 2011