How to Fix Your Credit

fix credit

Do you need to fix credit?

Dealing with bad credit or no credit can have a negative effect on your life in many ways. You may not realize how much your bad credit is affecting you until you need to get a car loan, buy your first house, or rent an apartment. Lenders aren’t as willing to work with individuals with bad credit as they are with those who have good credit. 

Some lenders will require a larger downpayment or a shorter loan term with a higher interest rate while other lenders might refuse to work with you at all. If you’ve found yourself in any of these situations, then it’s time to fix your credit. Are you not sure how to fix a credit score?

In the guide below, you’ll find several helpful tips for how to fix your credit. Continue reading to find out more!

Start With Checking Your Credit Report

Before you can begin fixing your credit, you need to know what’s bringing it down. You can use a free credit report check to your credit score without causing it to go down again. Take a few minutes to go through each item listed on your credit report so you can understand what you need to do to fix it. 

Then, you’ll want to check your credit report for any errors. If you find something on your report that doesn’t seem right, then you need to dispute it to have it removed and bring your credit score back up.

Once you complete these steps, you can then start looking at other methods to help repair your credit. 

Start Paying Back Past-Due Accounts

In many situations, past-due payments are the cause of a bad credit score. If you have any payments or bills that are past due, then now is the time to start paying them back. Once you catch yourself up with your payments, you’ll notice an increase in your credit score. 

To help get these past-due payments paid off faster, you can pay an extra $5 or $10 to bring your credit score up quicker as well. Take the time to look at your different past-due accounts so you know which ones have the highest interest rates. These are the ones you need to pay back first since they’re causing you the most debt. 

Raise Credit Limits to Lower Your Usage

Do you already have an open credit card? If so, you can ask your bank or lender to raise your credit limits. When you raise your credit limits, you’ll lower your usage. 

In general, it’s best to keep your credit usage under 30% to prevent it from negatively affecting your credit score. If you have a certain amount of credit open and you’ve used more than 30% of it, then this will negatively impact your score. When you raise your credit limits but don’t use them, it’ll lower your usage. 

For example, if you currently have a credit card with a limit of $500, then you can ask to have it raised to $1,500. Once the limit is raised, don’t spend any money on the card and it’ll bring your credit up. Do keep in mind, however, that in order for a lender to raise your credit limit, you must be in good standing with them and with other loans or lines of credit. 

Always be sure to speak with your bank or lender about the pros and cons of this option and if it’s a good option for you. 

Open a New Credit Card With a Low Limit

Here’s a tip that you might not be familiar with if you don’t already have a credit card. What some people don’t understand is that you need to have an open line of credit in order to have a good credit score. Without it, you won’t have any credit, which can be just as impactful on your daily life as having bad credit. 

To help bring your credit score up, you can request to have a new credit card opened with a low spending limit. A $500 credit card limit won’t put you into debt and can help bring your score up drastically. Use the card only when you know you have the money to put back on it. 

For example, when you go to put gas in your car, use your credit card and then immediately transfer money from your bank account to your credit card to pay it off. 

Avoid Canceling Credit Cards

Although you might feel tempted to cancel credit cards you no longer use, it actually has a negative impact on your score to do so. Closing your credit cards will decrease the amount of good-standing credit you have open, which can bring that score down. 

Instead of canceling the credit cards, keep them open. This is ideal for cards that don’t have a yearly fee to keep them. 

Keeping these cards open will continue to help your credit. Whenever you can spend a small amount of money on them and then pay it back quickly, do so. 

Speak With a Team of Credit Repair Professionals

Trying to build your credit or repair your credit on your own can become difficult at times. It’s not always easy to know what to look for on your credit report, how to find errors, and how to have items removed from your credit report. When you’re having a difficult time figuring out how to improve your credit score, don’t hesitate to contact credit repair services. 

A team of credit repair professionals can offer your credit tips, advice, strategies, and credit tools to help you get your credit where you need it to be. 

If You Need to Fix Credit, Then Look No Further  

Are you tired of having bad credit? Is it time to fix credit but you’re not sure how to go about it? Use all of the helpful information listed here in this guide and then contact The Credit Agents. 

We’re dedicated to providing you with a high-quality level of care and attention without monthly fees. Our services can help you address a variety of items, including medical collections, charge-offs, third-party collections, fraud, and much more. 

Click here to get started!