Low credit scores can negatively effect many aspects of your life, from not being able to get a mortgage or car loan to being turned down for apartment rentals or jobs. If you have a low credit score, you probably want to do whatever you can to improve it. The following tips could help you get started.
Methods to Repair Credit Rating
1. Contact creditors to settle debts. If you have outstanding debts that you have been avoiding, it's time to get your butt in gear and take control of the situation. Unpaid debts can really bring your credit score down. You may be able to settle your debts for only a percentage of the full cost, and if you play your cards right, you can even ask that the creditor not report negative things to the credit reporting agencies.
2. Fix inaccuracies on your report. It's very important to get a copy of your credit report so that you know what's on it. In many cases, you'll find mistakes. This may not be as drastic as someone trying to open an account in your name. Rather, you may see things such as late payment notes when you've always paid on time. Contact the agency that's reporting this and have them remove the "ding".
3. Pay bills on time. When you order your credit report, you'll see that each of your creditors reports on whether you've paid your bills on time or not. This is an important factor in creating your credit score. Late payments can bring it down. From now on, make sure that you always pay bills on time. One way to do this is to have the creditors automatically deduct payments from your account.
4. Pay down debt. One factor that plays a role in your credit score is the ratio of debt that you have to available credit. For example, if you have a credit limit of $ 10,000 and a balance of $ 9,000, things do not look so good. By paying down debt, you can improve that ratio and improve your score.
5. Hire a credit repair agency. As a last resort, you may want to hire a credit repair agency to act as a go-between for you. This should be your last resort – only do this when you do not have the time to take care of this yourself. If you choose to hire an agency, make sure that you research the company before signing any papers. There are a lot of scams out there.