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How to Fix Your Credit Score the Best and Quickest Way

 

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How to Fix Your Credit Score the Best and Quickest Way

November 17, 2017


Boosting or improving your credit score can be highly advantageous in getting better interest rates from the lenders on the loans, mortgages and credit cards. It also helps in increasing the financial options drastically, which previously were closed due to lower credit scores. It is a fact that the better are your credit scores, more you save yearly on your loan installments, credit card payments, mortgage, and so on. If your credit history has got negatively impacted due to a few reasons in the past couple of years, it is a good idea to improve your credit ratings and revive it by following the steps mentioned below –

  • The first thing you need to do is to pay your credit card dues or lower it drastically. If you have not paid any of your credit card bills for a few months, you should contact the credit card company and inform them that you are willing to pay. But, make sure you tell them you want them to report your credit card dues as fully paid.

 

  • Be selective when clearing off your debts. Instead of foreclosing your home or education loan, go for clearing your credit card debts. Credit card debts negatively impact your credit score, whereas other types of loans do not weigh similarly on credit history.

 

  • If you have been a defaulter in the past or a late payer of your dues, make sure to improve your habit and pay on time for the next few months. If you are making the last payment to clear credit card debts of any particular credit card, it is a good idea to pay a few dollars extra and keep it positive.

 

  • Paying on time is the best way to boost your credit ratings. A late payment will stay on your credit report for seven years, so it is a good idea to keep it as clean as possible and take the matter of clearing off debt seriously.

 

  • Finally, keep your expenses in check and do not use credit cards to make every Under using your credit card can help in limiting the dues at the end of the month.

Apart from the above tips, there might be another reason for your low credit score. More than 70 to 80 percent of credit reports contain some or the other errors, and the irony is the majority of the people don’t even know about it. The onus is on the people to check their credit report at periodical intervals, and see whether the information recorded is accurate or not. You can apply for and get free credit score report once a year through credit reporting companies online. Once you get the report, check it thoroughly for any errors or inaccuracy. And, if there are any errors, these are the steps you can follow to rectify the same –

  • If you find errors in the credit report, you need to report it to the credit reporting companies. But, it is essential to validate your claim, and for that, you need supporting evidence. Gather all the relevant documents that can help you prove the inaccuracy. 

 

  • Submit the relevant documents to the credit reporting companies along with a comprehensive dispute letter. The dispute letter should be able to explain what the errors you have found are and why you think it is an error. The attached documents in support of your claim will further help to ensure your stand is validated.

 

  • Even though you can file a dispute on errors online with credit reporting companies, it is suggested you write a written letter.

 

  • Keep your documents organized and ready, including all the letters sent and received when filing for error with credit reporting companies. It will help if you eventually have to move to the court.

 

  • In case the credit reporting companies reject your complaint, write to the Consumer Financial Protection Bureau. You can also write a 100-word dispute statement that will show up on your credit report for anyone who accesses it. In serious matters, hire a lawyer to take up your case and guide you legally.

The credit score can impact your life in ways more than one and ensures financial harmony by keeping financial options open. Whether you want to rebuild credit score from scratch or want to repair credit, half-yearly credit checks are a must. It helps you to repair credit score at the right time before any significant damage is done. 

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