Your credit score plays a big role in your life. It impacts the interest rates you pay on loans, whether you can get a mortgage or car loan and even your job prospects. Having bad credit can cost you thousands in high interest charges over the course of a lifetime, making it imperative to do whatever is necessary to fix your credit score as quickly as possible.
The best way to fix your credit score is by checking and disputing errors on your credit report. This is something you can do for free on your own or by hiring a company to handle disputes on your behalf. There are plenty of reputable credit repair services out there, such as Credit Saint, which can check your reports for errors and work directly with creditors and bureaus to correct them.
Errors on your credit report can include closed accounts showing up as open, debts that appear multiple times and inaccurate balances. According to the Consumer Financial Protection Bureau, these types of errors are common and can be difficult for consumers to spot on their own. You can find out more about what errors to look for on your credit report and how to dispute them by visiting the Federal Trade Commission’s website or contacting a local consumer affairs agency.
Once you’ve corrected any errors on your credit report, it’s time to start adding positive information back to it. One of the biggest contributors to your credit score is your payment history, so catching up on any late payments and focusing on making your monthly bills on time should be top priority. You can do this by setting up autopay on any bills that don’t allow it, or by establishing a budget and tracking your spending to make sure you’re not going over your limit.
Another part of your credit score is the amount you owe on your existing accounts. You can lower this number by putting a few of your existing balances into zero balance, and you can also do this by paying off your collections or unsecured debts. Finally, your score takes into account how many new accounts you have and how recently they were opened. This is why it’s important to keep your old accounts open and avoid opening new ones unless absolutely necessary.
It’s important to know that you won’t see major improvements in your credit score overnight, so be patient while working towards a better rating. If you have a thin credit file, consider fattening it up by keeping your current accounts open and by focusing on paying off delinquent credit card accounts. You can also use a credit builder loan to help you establish your credit history and improve your score over time. Just be aware that if you take out a credit builder loan, it will show up as an inquiry on your credit report. Fortunately, you can have this information removed once it’s paid off. fix my credit score