A person’s credit score is a very valuable number. It defines the individual’s credit worthiness, and allows or disallows a person’s access loans and other forms of financing. If you just found out how nasty your current credit score is, you may be thinking of ways to how to fix or rehabilitate it, in just a year. The good thins is that there are a number of ways for repairing your credit score quickly. Here’s how to repair your credit score in the fastest time frame possible.
Pay Off Your Debt, And Pay On Time
If you’re starting to get stuck in a rising pile of debt, especially credit card debt, you can ask a family member to pay off the high interest first, and make arrangements with your family member to pay off what you owe in a month or so. Always make it a habit to pay on time, and according to most credit experts, paying your bills on time does wonders in getting a handsome credit score. While most creditors won’t report late payments made at 30 days, once it reaches 60 to 90 days, a borrower will certainly get reported. If you’ve made late payments before, relax and don’t worry, since over time those infractions will slowly diminish, and you’ll get back your old credit score.
Avoid Applying For Unnecessary Credit
Always ensure that you avoid those new credit card offerings at the mall or department store, because all the newly added credit, no matter how small, are sure to do harm to your credit score. Make it a habit to only apply for credit that you truly need, and can afford paying off.
Use A Credit Card Wisely
Although it may seem hard to avoid getting credit cards in these times, you just need to learn how to use it wisely. Use a credit card for making small purchases, and don’t use it to borrow money every time you go shopping.
Correct All Errors In Your Credit Report
Once you get hold of your credit report, check it thoroughly, just like using a fine-tooth comb for removing any tangles in your hair. Be on the lookout for any inconsistencies or errors, and carefully read all three of your credit reports. Once you see any errors, dispute those figures, and have them corrected or removed within thirty days.
While your creditors may look like heartless individuals, the truth is that they are not your enemies. Creditors are in business because they earn a profit from their lending services, and if you don’t pay your debts, the creditor will also feel the pinch, and his bottom line gets hurt as well. It would be better if you sit down and negotiate with your creditors, since most of them are willing to understand your difficult financial condition, and may be more than willing to offer an easy way out of your financial mess.
Negotiating with your creditors may also help you rehabilitate your sinking financial ship, and could also help improve your credit score in the long run.