Have you checked your credit report lately and didn’t like what you saw? If the answer is YES, then you might be wondering about some ways you can fix your bad credit history and boost your scores.
Look, whether you’re trying to get a home loan, apply for a credit card or buy a car, fixing bad credit will save you money on interest and monthly payments over the long haul.
And today, you’ll get 4 ways to fix your bad credit and take back control over your money so you can finally become financially free.
Way #1: Pay Your Bills on Time – Starting Now
Once you start making timely bill payments, bad credit remarks will naturally slip further away, and better credit habits will begin to show up on your report.
To pay your bills on time, set up automatic bill payments with your bank so you’ll never miss a payment again.
Way #2: Dispute the Negatives
If you have bad credit, you’ll see items such as late payments, collections, charge offs, judgements and other negative marks on your record.
Contact each of the three bureaus (Experian, Equifax and Transunion) about your negative accounts to dispute them.
It may take 30-60 days to receive a response to your dispute, but all three bureaus offer online services to make the process easier.
Way #3: Pay Your Bills Down to One-Third Usage
Each bureau monitors how much credit you use on each account, and then raises or lowers your scores accordingly.
If you keep your credit usage below one-third of your total credit limit, you can expect a higher credit score.
To pull this off, you’ll need to either cut expenses or earn more income to pay down your debt to below one-third usage.
Way #4: Increase Your Credit Limits
Just as paying down your debt can trigger a higher credit score because of the lower credit usage ratio, increasing your credit limits can also help.
To raise your credit limits, contact your creditors about your accounts and be prepared to provide annual income information.
Another sneaky way to raise your total credit usage ratio is by opening a new credit card. A new credit line will give you more overall available credit and this will lower your total ratio.
Just make sure you don’t spend the borrowed money, so you can remain on top of the credit game and come out winning.
You can fix bad credit by paying your monthly bills on time, disputing the negatives, paying your credit card bills down to one-third usage and increasing your credit limit. If you stick to these four plans of action, then you’ll find a dramatic difference in your credit scores, which will help you save money so you can build a solid financial future. Want more sound credit advice? Click here to schedule your consultation today!