Unfortunately, it is simply not possible to remove accurate information from your credit report, and no one can do it for you. But before calling every credit assistance number you see on t.v., try out a few credit repair tips on your own. No need to spend a lot of extra money if you don’t need to. (When you’re having credit problems, this is the last thing you want to do). If helping yourself turns out to be no big help at all, then you can turn to the “pros.”
Investigate Your Own Credit Report
Before getting too panicked about your overall credit score, take some time to investigate the details on your credit history and report. It is possible that a mistake has been made and that your report contains inaccurate data. In this case, it is vital that you alert the credit reporting company about the error in writing. Credit agencies (Equifax, Experian, and TransUnion) are required by law to verify inaccuracies and remove them from your report.
If everything on your report is correct, the next step is to identify which areas are pulling your score down. The main categories on your report that factor up to make your credit score are payment history, credit utilization, length of history, new credit, and credit mix. Knowing whether your history or type of credit is the problem area will help you determine which steps to take next.
5 Credit Repair Tips to Boost Your Credit
- Pay current bills on time. If you’ve missed any payments in the past, this step is crucial. Even though paying bills on time will not boost your credit immediately, it does help establish a healthy history over time. You will thank yourself today and 2 years in the future for establishing this habit now.
- Pay extra into debts. One of the fastest ways to repair your credit is simply to pay off debts, and a helpful way to accomplish this is by paying more than you need to into monthly bills. Getting ahead of your payments will significantly reduce the amount you owe and increase the amount of credit available (which is part of the “credit utilization” category).
- Close a credit account or two when you’ve paid them off. Your report takes into account how many credit accounts you have, no matter if they’re open or closed. So closing an account is not a good way to quickly improve credit. However, closing an account will prevent you from using it further and creating even more debt for yourself. If you know you’re a big-time spender, consider closing even just one account to reduce some of that temptation for yourself.
- Schedule personal payment reminders. Thanks to the technology we have today, it’s easy for your phone, computer, car, or even refrigerator to remind you of important events. Take advantage of this and set reminders about bill payments coming up in any place that works best for you. In addition to this, try to schedule your bills so that they fall on the same day.
- Make a physical plan and stick to it. This might include marking financial goals on a calendar or simply making your existing budget plan more detailed and strict.
Does Your Credit Qualify You for Home Loans?
Never believe that your credit cannot be fixed. If you need to purchase a new home or refinance your current one but are afraid your credit will disqualify you, give us a call. Low VA Rates works with veterans of all credit backgrounds all the time.