| Here's a little-known credit repair secret you might not have heard. It's actually quite easy to fix bad credit and bring your FICO score back into the high figures again. The trick is to know the right steps to take to make the biggest impact.
Many credit repair articles, websites and tip sheets seem to make fixing your credit problems sound so difficult. The truth is you can make a really big difference to any of your problems by taking a few small, positive steps in the right direction. Here are some easy steps to get you started.
Credit Report Errors
This really isn't a credit repair secret. Most people are aware that they can order a free credit report annually. When it arrives, check over it for any incorrect listings or entries. If you notice something listed that you've paid in full but is still noted as outstanding, call the creditor at once and ask them to report it positively.
The same is also true for any entries you see that don't belong to you. Sometimes banks make mistakes, names get mixed up and entries may appear that really should have been reported to someone else. You're able to dispute these entries and have them removed if they're not correct.
Repayment History
Your repayment history accounts for 35% of your total credit score, so it's no surprise that banks take this portion of your credit report seriously. A quick credit repair secret to increase this section of your credit score fast is to divide your regular monthly payments on any bills, credit cards or loan repayments by 4 and then pay this new, smaller amount on the same day every week.
The reason this little credit repair secret is so effective is because your creditors report your repayment activity monthly. By paying four smaller payments each month, you receive positive reports every month about your financial responsibility.
Common Sense
Most people only ever pay the minimum payment due on each of their monthly bills and repayments. While many credit repair tips suggest paying more than your minimum, let's be realistic. Most people simply don't have the extra cash each month to make extra payments.
A serious credit repair secret that could increase your score easily without breaking your budget is round up your payment by a few cents. This doesn't sound like it's doing much, but it will be reported as making an extra payment.
Balance vs Limits
A full 30% of your credit score is calculated based on the balances on your current accounts as they relate to your maximum credit limit. This means if you've maxed out all your credit cards, you'll see a reduction in your credit score.
As you reduce the balances on your outstanding debts you'll be increasing your score. While it's not exactly a credit repair secret, it is an easy way to begin repairing your credit quickly.
Mix and Match
Perhaps the biggest credit repair secret of them all is to mix and match all of the above tips together. Order your free credit report annually and check it for any errors.
Divide your minimum monthly repayment amounts by 4 and pay the smaller amounts more frequently. Round up your new weekly payments by a few cents to the nearest dollar and pay this new amount.
Each of these small steps will help you to fix some of your credit problems and make your budgeting easier each week. You'll also find that those small extra payments will eventually start chipping away at your balances too. |