| There are plenty of very simple credit history repair tactics you can use to give your FICO score a quick boost. If you're thinking about applying for new credit, then spending a little time getting your finances in order could help your chances of getting your application approved.
While there has been a lot of credit history repair tips focused on finding and correcting any errors on your credit report, it should be noted that a large percentage of people with bad credit don't have any erroneous listings. If you happen to find an entry on your report that shouldn't belong to you or has been listed in error, then you may dispute the entry and have it removed.
A more likely cause for a bad credit score is a history of late payments or missed payments on bills and loans. As your conduct with your financial responsibilities accounts for 35% of your total credit score, this is usually the section that can reduce your score most quickly.
The good news is, it's also the sector of your score that you can use some credit history repair tactics to improve rapidly.
Missed Payments and Late Payments
If you have any delinquent accounts showing more than one missed payment, you should find a way to catch up those payments immediately. Do whatever it takes to catch up those missed payments and you'll be rewarded with an instant boost to your credit score as each of your creditors reports this positive activity.
You may also find that your repayment amounts will be reduced as your creditors will no longer be able to charge you penalty fees and overdue interest rates. This can help your budget at the same time as offering some credit history repair assistance.
Reduce Outstanding Balances
How many of your existing credit cards are maxxed out with balances at the same level as the available limit? Your balances as they relate to your limits form 30% of your total credit score calculations. Reducing them even a little can give you a quick credit score boost.
Hold a yard sale. Find some unused items in your home to list for sale on eBay. Take on a part time weekend job to raise your income temporarily.
Beating Your Creditor's Reporting System
Here's a quick credit history repair tip. Your creditors report your repayment activity once a month. They base their information on whether you made your minimum payment amount by the due date or not.
Based on this monthly reporting system, it's possible to beat your creditor's reporting system and force them to report more positive activity than you've actually made and it's easier than you think.
Take your monthly payment amount and divide it by four. Let's assume you need to pay $190 per month. Divide that figure by four and your new weekly payment will be $47.50. Pay this amount on the same day every week.
By the end of the month, your creditors will be forced to report extra payment activity, which gives you a quick, easy boost to your score. The smaller amounts are easier to budget for each week too.
If you're serious about working on some quick credit history repair tactics, then work on these simple things you can do yourself for free. You'll be helping to fix your bad credit and you'll also be learning some financially responsible behaviors that will help stop you getting into the same situation again in future. |