Are you interested to know how you can improve your credit? If you have bad credit, are you considering hiring a credit repair service or try to work on it yourself? Improving your credit isn’t really hard, its just time consuming. You need good organizational skills and realistic expectations.
Helpful Pointers for To Improve Your Credit
- Commitment. First off you need to commit to yourself that you are going to be more mindful of your spending habits. Just like a person who wants to lose weight and starts a food diary, you need to start a financial diary! Review the diary and set a budget. Cut out the unnecessary expenses and put that money towards paying down your debt.
- Pay off your debt. Starting with your high interest loans and credit cards. Get in the habit of paying MORE than the minimum. If you pay the minimum only, you will never get out of debt!
- Don’t close your paid off credit cards to soon. Once you have paid of a credit card, don’t close it right away. Remember that part of your credit score is based on the amount of available credit you have. Once you had paid off or paid down some of your credit cards, I’m sure you so an immediate increase in your credit score. That’s because your available credit increased. Leave the card open, just don’t use it except a few times a year to keep it open. Make sure that when you do use it, make sure you can pay it off at the end of the month. That way you avoid the high interest payment.
- Monitor your credit report regularly. Monitoring your credit report has become a lot easier over the years. You used to have to write a letter, send proof that you are who you are claiming to be and wait several weeks to get your credit report. Now you can get your credit reports online, and immediately. Make sure you pull all 3 credit reports. Your score can vary greatly!
- Dispute inaccurate information. If you find erroneous information, write a letter to the credit bureau reporting the wrong info. Be prepared to show WHY the information is incorrect. Don’t use a form letter that you find online. Unfortunately a lot of so called “credit repair” companies just send out letter after letter claiming the information on their clients credit report is wrong. Even though they know its right. Its their hope that they can get something removed by the shear number of letters sent. Make sure your letter stands out, so that they know you are not just a computer spitting out a dispute letter. Keep track of all the letters you send. Its best to send your disputer letters with a return receipt so you know your letter was received and the exact date the bureau got it. They have 30 days to respond.
- Don’t go over your credit limit. Look over the terms and conditions of your credit card, especially the fees. I’ve seen credit card companies charge $80 for a customer that went over their credit limit by about $15!
- Cash Advances. Avoid credit card cash advances. The fees are outrageous and the interest rate on them is higher than what is charged for purchases.
Keep these tips in mind and make having good credit a habit!