8 Tips to Help Repair Bad Credit

Having a bad credit score can make life very difficult in the realm of finance. Having credit card processing services everywhere makes it easy to make that simple swipe! When everything you do has to be done with cash that may leave no extra money for unexpected emergencies or large purchases, such as a car or home. There are ways that you can start rebuilding and fixing your credit starting today. Here are 8 tips to help you repair a bad credit score:

1. Start by getting your credit report from the three major credit agencies: Experian, Transunion and Equifax. All three can have different information and scores.

2. Go over your credit reports with a fine-toothed comb. You may find that you have items on your credit report that are wrong or even fraudulent. (For example, I had a gas card on my credit report that had been opened in 1986… when I was 2 years old.)

3. Report any possible fraud or incorrect information to each credit bureau. This is a bit of a process and can take a while, so it’s best to start trying to get mistakes removed right now.

4. If you do still have any credit cards, keep them hidden. Hold on to maybe one card with a small limit, so you don’t overspend but still have a credit card on hand for emergencies. Merchant account services can influence a retailer’s price, so make sure you shop smart!

5. Be weary of “quick fix” credit solutions. Not all credit-counseling services are bogus, but if you do decide to check out this option, be VERY diligent in your research.

6. Small changes in your spending habits will go a long way. Bring coffee from home instead of buying it every morning and make a list before you go to the grocery store to avoid impulse buying.

7. Plan out how you are going to pay off existing debt. Send larger payments to cards with high-interest rates and once they are paid off, don’t close the cards (as that negatively affects your credit) but consider cutting them up so you don’t get into trouble with high-interest rate cards again.

8. Negotiate with your creditors. You would be surprised to find out how easy it can be to reduce your interest rate. Sometimes all you have to do is ask. Call all of your creditors, and just ask. If even just a couple of them do so, call back the ones that wouldn’t and let them know that your other creditors will reduce your rate, so you will be transferring your balance. They may change their tune there. If not, just transfer your balance, if possible, to one of the cards that gave you a lower rate.

Have any other tips you’d like to share on credit repair? Comment below and let us know about them!

 

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