Ways You Can Start Repairing Your Credit Today
If you are having financial troubles and cannot pay your debts, your credit score will decrease. When your credit score is poor, you may find difficulty getting a mortgage, renting an apartment, or even gaining employment in certain industries. If you think you are so behind that your credit can never recover, try not to worry. There are some things you can do to help improve your credit score. Here are some things you can do:
Carefully Examine Your Credit Report
The first step to repairing credit is to get a copy of your credit report from all credit bureaus. You are entitled to a copy of your credit report for free once a year. Once you get your credit report, you need to set aside some time to carefully go through every section. One of the main issues with those who have poor credit is mistakes on the credit report. Any mistakes that are negative in nature can drastically decrease your credit score.
As you look through your credit report, check for things that should not be there. This can include credit accounts that are not yours, cases of missing payments that you actually did pay, closed accounts that are still open, credit inquiries you did not authorize, and anything else you know is not correct. Once you discover mistakes, contact each credit bureau to have those items removed. You will see an increase in credit score before long.
Don't Close Any Accounts
You might think that closing your credit card accounts will help you improve your credit. Doing this actually does the opposite. Even if you do not use the account, you should allow it to remain open to help build a credit history. If you have had a credit card account for decades, closing it can drastically decrease your credit score. A good credit history is one of the factors the credit bureaus look at when giving you a credit score. You may want to make a few charges on the account throughout the year, as leaving them open without any activity can cause the credit card company to close the account without your consent.
Get More Credit
Though it seems counterintuitive, you can increase your credit score by getting more credit. You do not have to apply for new credit accounts. Instead, contact your existing creditors and ask for an increase in your credit line. Asking for an increase helps you improve your debt-to-credit ratio. If you have more credit available to you versus the amount of debt you currently have, your credit will improve quickly.
For more information, contact a credit rebuilding consultant near you.