HOW CAN I REPAIR MY CREDIT SCORE

REPAIR CREDIT SCORE

HOW CAN I REPAIR MY CREDIT SCORE

My credit score reflects my payment /credit history. It indicates how regular i have been in making my payments and how well i have handled my credit. Credit score is very vital be it for getting employment, insurance, loans  (car, mortgage).It is one of the most important factors taken into consideration by financial institutions and lenders before giving approval for any loan.

A high credit score is acceptable   as it can get you loans on good terms and many other attractive credit offers. A poor /low credit score on the other hand can make one’s life very difficult  .To build my credit score i need to repair it. This might take some time and require patience .The important steps that i need to take to repair credit score are discussed below.

Procure my credit report-If i do not have my credit report with me. Procure it from all the three credit bureaus. My credit report has data that was used to derive my credit score and it may contain certain errors. My need to check for any errors such as  are there any incorrect late payments  on my accounts and whether the outstanding amount due on any of my credit card accounts is incorrect . If there are any errors in my credit reports, i need to report them to the credit bureaus.

Make timely payments-This is the most important factor that majorly affects my credit score. I need to set up payment reminders with my banks for payment of my monthly credit card dues. If i have a bank account and credit card with the same bank, i can avail the auto debit facility where my amount due or minimum amount due  on my credit card is automatically paid directly from my bank account every month on the due date.

Pay off all my debts-This will help a lot in repairing my credit score. Clear all my dues. Stop using my credit cards and try to pay off debts towards the highest rate of interest credit cards first and make minimum amount due payments on the other cards to avoid late payment charges.

Delinquent payments have a negative impact on my credit score. The more prompt and timely payments i will make on my credit card the more it will help in raising my credit score and build a good credit score for me.

Keep my credit card outstanding debt low .pay off all my revolving credit debts.

Don’t open new credit card accounts and do not close unused credit card accounts as this will very negatively hurt my credit score. Closing unused accounts will further bring down my credit score.

If i want to repair my credit score then i need to focus on repairing the errors in my credit history and taking action to fix those errors. These above mentioned steps will definitely raise your credit score from a low level but it will take some time and requires patience and discipline at your end.