Are you wondering why the credit repair industry seems to lug around a bad reputation? Are you curious about what these “credit experts” are actually doing to fix credit scores? Maybe you’d have more confidence in credit repair if you just knew what to expect. After all, if you’re in need of credit repair, chances are you can’t afford to hire the wrong company for help—your time and money are on the line.
The truth is, there’s no magic to fixing credit. There’s no trick, no secret, no scam and no special science—it’s actually very straightforward and simple. So if you’re ready to resolve your credit problems and start turning things around, here are 5 easy (and proven-to-be-effective) ways to improve your credit and start restoring your financial health…
1. Correct your credit report—if there are any mistakes on your credit report, they’re probably hurting your score. Inaccurate collections, for example, can hurt your score by up to 50 points or more. But if the report is genuinely inaccurate, it shouldn’t be difficult to fix by sending a debt validation letter. And doing so is one good way to raise your score.
2. Pay down credit cards—having high credit balances is another way to bog down your score. Pay them down. The more debt you have, the more of a risk you are to lenders, and the lower your score will be.
3. Open new credit cards—not having enough credit can also affect your score. While there’s no exact recipe for good credit, having the proper number of cards (3 is often recommended) along with the right combination of credit (installment, revolving and open) will help you to optimize your score.
4. Pay your bills on time—we all know how late-payments can hurt your credit score. So the best way to avoid this damage is to make sure you always pay on time. Remember, late-payments are one thing that’s seriously considered when lenders try determine your credit worthiness, so steer clear of this pitfall by being prompt with each and every one of your payments.
5. Age your credit—time has a great reputation for curing all. And this is even true for credit repair. One of the very best ways you can effectively raise your credit score is by aging your existing credit. This, of course, may require that you keep the right number of cards and the right mixture of credit, pay your bills on time every month, and never spend more than you can afford to pay. With time, you’ll probably see a noticeable improvement to your credit score.
It’s true— there’s no magic to fixing your credit score. But it’s never going to happen if you don’t take the first step. It’s unfortunate that people have a hard time putting faith into credit repair, but understanding the process and taking the appropriate steps is the best way to ensure success.
