5 DIY Ways of Repairing your Credit Score

6 mins read

Everytime you read a report on credit score and credit score repair, It may sound like a lot to take on, or you may consider it too technical, but the process of repairing your credit score is not as complicated as you have always imagined. This is because the experts at Credit Spike have simplified the process of repairing your credit. 

With the tips and advice from Credit Spike and Dillon Kivo, you do not need the assistance of a credit repair service company; this is because the repair of your credit is something you can do yourself. 

The following are some DIY tips on repairing your credit score: 

Obtain Your Three Free Credit Reports and Credit Score

Consumer’ credit history is reviewed by three major credit bureaus: Experian, Equifax and TransUnion. Under the Fair Credit Reporting Act (FCRA), each of these bureaus is required by law to provide you with one free credit report each year on request. These reports highlight your credit history so you can see the items that are bringing your credit score down. If you are in the process of repairing your credit, accessing your free credit score will help you get a better understanding of where you stand with each bureau. Visit Annual Credit Report to obtain your credit report. 

Examine Your Credit Reports

When you receive your Credit Report, you must scrutinize each of the reports and look out for items that are capable of damaging your credit score. Review each of your reports carefully and look for items that can damage your credit, like:

Typos or errors in your personal information, late payments, maxed out accounts, unknown accounts, accounts you requested to close, but are still open. 

Document each negative mark you find and ensure that you address each of them together with the account or the lender it is attached to.

Avoid Applying for Many New Lines of Credit at Once

While your credit is being repaired, avoid requesting new lines of credit, this is because every time you apply for credit, the credit reporting agency reports it as a “hard inquiry.” It will be factored negatively into your report and score. 

It is important to note that people with good credit scores can apply for credit a couple of times a year; those repairing their credit do not have the same luxury.

Dispute False Items to Have Them Removed

If you find any negative or inaccurate items on your credit report, make sure you reach out to the credit bureau who reported them and dispute them accordingly. Disputes such as, unclosed accounts, unknown accounts and ensure successful resolution before you move on. 

Stick to Good Credit Habits

Good credit habits include paying bills on time, maintaining low credit card balances, and paying off debt. Continuous practice of a good credit habit will eventually yield a positive result on your credit. 

Pay Bills on Time

Defaulting on your bills and paying late does your credit score more harm than good. Paying on time will protect your credit from additional dings. Consider enrolling in bill auto-payment if you haven’t already. 

Pay Off Debt 

Paying off your credit card debt is a significant step in the right direction, and it puts you on the way to successfully repairing your credit score. 

There are different approaches you can take to pay off your debt:

Adjust your spending habits: If you haven’t gone into default yet, consider adjusting your spending habits. You can set up a budget, spending limit if possible. 

Consider consolidating your debt: By consolidating your debt, you are outrightly paying off all your debt. 

Talk to your lender: If you are having trouble keeping up with your payment obligations, consider talking to your lender. Your lender may be willing to negotiate a new payment plan that is more favorable to you. 

Patience: Be patient and consistent while you try to rebuild and repair your credit score. You must understand that repairing your credit will always take a while, therefore sticking to a responsible credit habit (as listed above) will help your score improve. 

While Credit Spike and Dillon Kivo are not out to stop people from patronizing Credit Repair Service Companies, they are simply advocating for a situation where every individual tries to at least monitor their credit and repair whenever possible all by themselves.

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James Blunt

James Blunt is an Economics Journalist. He is well-equipped with research and investigation. For the past 8 years, he has been covering all economic and personal finance-related content that identifies with and topically relates to businesses' vision/target demographic.

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